SMALL CAN

GROW MIGHTY
WITH TIME
Presenting
Small Cap Fund
An open-ended equity scheme predominantly investing in small cap stocks

Available with:
AUT
TEP Aims to protect against
sharp fall in market
Shifts appreciated
TRIGGER amount to another fund

NFO: 22nd April – 6th May, 2019

Large Cap
TOP Number of stocks 100
100

Mid Cap
101-250 Number of stocks 150

251 Small Cap

ONWARDS Number of stocks ~4600+
More sectoral opportunities

Why invest in Small Caps?

Present in large organized sectors Present in the sectors where large
& have potential to scale up & mid caps have limited presence

Businesses in emerging Usually under-researched &

industries under-owned by institutional investor
 Small caps have bounced back
with greater intensity aer corrections
Nifty Small Cap 100 TRI
CY2009 CY2012 CY2014 CY2019

110% Influencing Factors

39% 57%
Economy
Gov. Finances
(returns)

0
-33% -7% -28% Consumption
-71%
Interest Rates
CY2008 CY2011 CY2013 CY2018
Source: Bloomberg; Internal Analysis
Past performance may or may not be sustained in future.

Invest in
Small Cap Fund
Available with
AUT
TEP TRIGGER

Investment Strategy
Number of Liquidity Our Small Cap
Management Track Record and
Small Cap Stocks Daily trade value in
Quality Growth Outlook
Stocks Universe
~4750 excess of Rs. 1 cr ~200

Over 1500 annual interactions with companies in our universe

Portfolio Construction Portfolio Review Sell Discipline

Meet every company Typically 3-4 annual interactions Achievement

before investing with portfolio companies of Target Price

No active cash calls In-house earnings Adverse developments

estimates with regular in Corporate Governance
Typically Single stock monitoring and revision
allocation not Adverse policies
exceeding 5% Strict check on or environment
portfolio liquidity

The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy
as mentioned in the Scheme Information Document of the scheme.
Facilities Available Under Principal Small Cap Fund

AUT
TEP TRIGGER
Shift appreciated
Invest in instalments Principal Small Cap Fund
amount automatically

STEP: Aims to protect against sharp fall in market

STEP is Smart Trigger Enabled Plan available only under NFO
Guards your investment against sharp market fall as investment is made in 4 instalments
With any incremental fall of 3% in the benchmark in a month, it automatically shifts 25%
of initial investment to Principal Small Cap Fund
Remaining money is not idle as it’s invested in Principal Cash Management Fund

Here’s how STEP works:

Units of Principal Small Cap Fund
On Allotment Initial
- May 2019 Investment
25% alloted and balace 75% is invested in
Principal Cash Management Fund

3% fall in Nifty Small Cap 100 Index from the date

Subsequent
Month - Jun’19 1 STEP
st 25% of initial allotment or last business day of the
Month (If STEP did not activate during the month)

Further 3% (Total 6%) fall in Nifty Small Cap 100 Index

Subsequent
Month - Jul’19 2nd STEP 25% from the date of initail allotment or last business day of
the Month (if STEP did not activate during the month)

Further 3% (total 9%) fall in Nifty Small Cap 100 Index

Subsequent
3 STEP
rd
25% * from the date of initail allotment or last business day of
Month - Aug’19
the Month (if STEP did not activate during the month)

* Includes any rise or fall in the value of investment

Auto Trigger: Shift appreciated amount to another fund

Specify the target Your
rate of return investments in
to facilitate a Principal Fund
Investment Units redeemed from of your choice
Invest in auto trigger
appreciates Principal Small Cap Fund
Principal to reach and amount switched to
Small Cap the target rate a Principal Fund Your
Fund of return of your choice investments in
Principal Small
Cap Fund
Scheme Facts
Benchmark: Nifty Small Cap 100 index

Fund Managers:
PVK Mohan Siddarth Mohta
(Head-Equity) (Associate Fund Manager)

Plan: Options:
Direct & Regular Growth & Dividend

Minimum Application Amount:

New Investor – Rs.5,000/- for both Dividend and Growth Option and any amount
thereafter under each Plan/Option
STEP – Rs 25000/-
Systematic Investment Plan: Minimum twelve installments of Rs. 500/- each
Systematic Transfer Plan: Minimum Six installments of Rs. 1,000/- each
Regular Withdrawal Plan: Minimum Six installments of Rs.500/- each

Exit Load:
If redeemed/ switched on or before 1 year from the date of allotment: -
Nil for redemption/ switch out of units up to 25% of the units allotted (the limit)
1% on redemption in excess of 25% of the limit stated above-
Redemption of units would be done on First in First out Basis (FIFO)
Nil thereafter

Product label:
Principal Small Cap Fund Principal Cash Management Fund
(An open ended equity scheme investing in small cap stocks) (An Open-ended Liquid Scheme)

This Product is suitable for This Product is suitable for

Riskometer Riskometer
investors who are seeking*: investors who are seeking*:
Income over a short term
Long term capital appreciation investment horizon.
A fund that invests primarily in Investment in Debt & Money
small cap companies LOW HIGH
Market Instruments, with maturity LOW HIGH

Investors understand that their principal will not exceeding 91 days Investors understand that their principal will be
be at Moderately High risk at Low risk

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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