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Principal Junior Cap Fund

Principal Mutual Fund has launched a diversified equity fund. Named as Principal Junior Cap, the fund would invest across market capitalisation. The fund's IPO opened on May 12 and would continue till June 8, 2005.

Benchmarked against CNX Nifty Junior Index, the fund plans to invest in the constituents of the CNX Nifty Junior Index complemented by mid-cap stocks to create a blended portfolio. It'll have 65-100 per cent of its assets invested in the companies within the market capitalisation range of the companies in the CNX Nifty Junior Index.

The fund would invest 0-35 per cent of the assets in companies with the market capitalisation of below Rs 2,000 crore. Money market instruments will constitute 0 to 30 per cent of the fund's assets.

The minimum application amount for the fund is Rs 5,000. Investors can also invest through the SIP mode during the IPO period. The fund has waived entry load during the IPO period. After that, it would charge 2.25 per cent for investments below Rs 3 crore.