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CREDIT INSIGHT - Principal Mutual Fund India...4.6x and management targets to achieve 2.5x. Our...
Transcript of CREDIT INSIGHT - Principal Mutual Fund India...4.6x and management targets to achieve 2.5x. Our...
CREDIT INSIGHT
November 2019
Monthly Credit Update
Fixed Income: Investment Process
Research
Fund Management
Risk Management
• Rates: Access to best ofInternal/External & Proprietary
• Credit: Exhaustive top down process combined with "bottom up" issuer selection
• Monthly Asset Allocation Matrix
• Benchmark & Peer Group Analysis
• Daily Performance Attribution
• Portfolio Laddering
• Limit monitoring/ compliance
• Monthly Review of Risk Areas
• Global Supervision of Risk Processes
Highlights of the Credit Research Process
Board approved Internal Credit Risk Assessment Policy
“Credit Tracker” list of approved Credits: LT & ST: Bottom Up Approach
Inclusion and sustainability of a credit in the record/list is determined by the established credit process, which includes two broad areas :
• Approval for new credits (through credit note)• Review and monitoring of existing credits
“Early in- Early Exit” Identify new promising credits early on, take shorter exposures
Access to in house Equity Team expertise on sector/stock coverage where we take exposure
IIFL HOME FINANCE LIMITED (‘IIFHL’)
Rating: Crisil AA (stable) and ICRA AA (stable) and CARE AA( stable)Rating change in last month: No changeSector: Financial ServicesAbout: IIHFL, a subsidiary of India Infoline Finance Ltd. (IIFL), is National Housing Bank (NHB) registered Housing
Finance Company (HFC). IIFL has a diversified loan book and offers products like home loans, gold loans, commercial vehicle loans, MFI loans, MSME loans, LAP and construction finance. IIHFL caters to a vast segment of retail and corporate customers through its loan offering - this includes home loans, construction finance and loans against property, with the key focus area being housing loans to individuals against the security of residential collaterals. The company has built its portfolio only in the past few years and asset under management (AUM) of the company stood at app. 10kcr as on March 31, 2018. As of June 30, 2019, the company had an AUM of Rs 18,988 crore (Rs 18,158 crore as on March 31, 2019). The company had a networth of Rs 1,665 crore as on June 30, 2019 (Rs 1,597 crore as of March 31, 2019). It reported a profit after tax (PAT) of Rs 70 crore on a total income (net of interest expense) of Rs 178 crore for the quarter ended June 30, 2019 (Rs 296 crore and Rs 743 crore, respectively, in fiscal 2019)
IIFL Home Finance Limited (‘IIFHL’)
Coastal Gujrat Power Ltd (‘CGPL’)
Ess Kay Fincorp
Dewan Housing Finance Corp Ltd (‘DHFL’).
Hindalco Industries Ltd
Steel Authority Of India (‘sail’)
Indiabulls Housing Finance Ltd (‘IBHFL’).
Cholamandalam Investment & Finance Ltd Chambal Fertilisers ltd
Essel Mining And Industries Ltd
Hero Cycles ltd
Ultratech Cement ltd
Reliance Industries ltd
Housing Development Finance Corporation ltd
LIC housing finance ltd
Godrej Agrovet ltd (‘GAVL’)
ESS KAY FINCORP
Rating: India Ratings A+(SO) (Stable)Rating change in last month: No changeSector: Financial ServicesAbout: EssKay Fincorp (EKFL) is an asset financing non-deposit-taking non-banking finance company registered
with the Reserve Bank of India. The company was incorporated in 1994 and is engaged in the financing of both new and used vehicles and refinancing of pre-owned vehicles. It also provides loans to SMEs. Portfolio comprised commercial vehicle (54%), tractor (18%), Car (14%), MSME (10%) and two-wheeler (3%) as on March 31, 2019. Mr. Rajendra K Setia is the founder and managing director of the company. Profit after tax (PAT) was Rs 52.2 crore on total income of Rs 365 crore in fiscal 2019 against a PAT of Rs 22 crore on total income of Rs 227.3 crore in the previous fiscal. Profitability improved in fiscal 2019 owing to improvement in net interest income and reduction in operating expenses.The exposure has an unconditional, irrevocable partial credit enhancement by Northern Arc Capital ltd.(rated A+ by ICRA)
DEWAN HOUSING FINANCE CORP LTD (‘DHFL’).
Rating: CARE D Rating change in last month: No changeSector: Financial ServicesAbout: DHFL is a large housing finance company with a track record of more than 30 years. The NCDs were rated
AAA by CARE at the time of our investment. The NCD’s held are secured, with security in the form of first ranking pari-passu charge on present and future receivables of the Company. The Company delayed some payment in June 2019 which has resulted in external rating downgrade to D. Due to this, independent scrip level valuation agencies marked down the secured exposures of DHFL by 75%. Currently the company has stopped paying any dues as they are in a ‘standstill mode’ awaiting signing of Inter Creditor Agreement (ICA) with the lenders. Further, the Debenture Trustee, Catalyst Trusteeship Limited, had sent a written communication asking for consent of NCD holders for acceding to the Inter Creditor Agreement (ICA) in terms of Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019. The deadline for the same was 4th Sept 2019. Pursuant to the framework for resolution of stressed assets as provided by SEBI for Inter Creditor Agreements (ICA) consent to the Debenture Trustee for the ICA was not provided. We have initiated legal proceedings to recover the monies due to Principal Mutual Fund. Legal notices have been served on DHFL as part of the process. Please also refer the following link on our website for updates on DHFL.
COASTAL GUJARAT POWER LTD (‘CGPL’)
Rating: AA(SO )by India Ratings and CARERating change in last month: No changeSector: PowerAbout: CGPL had implemented a 4,150-MW Ultra Mega Power Project (UMPP) in Mundra in Gujarat. The
operations started in 2013. • CGPL has entered into Power Purchase Agreement (PPA) with DISCOMs in Maharashtra (760 MW), Gujarat (1805 MW), Rajasthan (380 MW), Punjab (475 MW) and Haryana (380 MW) for 3,800 MW power supply. CGPL is a wholly owned subsidiary of Tata Power, which has a strong market position as integrated power player. Tata Power is rated AA- by CRISIL. Exposure on CGPL is guaranteed by unconditional and irrevocable guarantee of Tata Power.
STEEL AUTHORITY OF INDIA (‘SAIL’)
Rating: CARE AA- (STABLE), India Ratings AA- (Stable)Rating change in last month: No changeSector: MetalsAbout: SAIL is a PSU with GOI stake of 75%. SAIL is an integrated iron and steelmaker with five integrated steel
plants: Bhilai Steel Plant, Durgapur Steel Plant, Rourkela Steel Plant, Bokaro Steel Plant and IISCO Steel Plant. In addition, it has three special steel plants: Alloy Steel Plant, Salem Steel Plant and Visvesvaraya Iron & Steel Plant.SAIL is one of the largest steelmakers in India, with a total crude steel and saleable steel capacity of 19.1 million tonnes per annum and 17.9 million tonnes per annum as on 30 June 2018, respectively. The company made profit of Rs. 2178cr for the year ended March 2019.Net debt to EBITDA at FY19 end was at 4.6x and management targets to achieve 2.5x. Our exposure is short term with residual maturity of less than three months.
INDIABULLS HOUSING FINANCE LTD (‘IBHFL’).
Rating: CRISIL AA+ (neg), ICRA AA+ (neg), CARE AA+ (neg)Rating Change in last month: Downgraded from AAA by one notch Sector: Financial ServicesAbout: IBHFL continues to operate as a mortgage finance company registered with the National Housing Bank
focused on asset classes such as mortgages and commercial credit. The rating outlook has been changed to neg from watch developing, retaining the AA+ ratings. The watch resolution follows the announcement by IBHFL on October 09, 2019 that the Reserve Bank of India (RBI) has not approved the voluntary amalgamation of IBHFL and ICCL with LVB. The long-term ratings have been assigned 'Negative' outlook on account of possibilities of funding access challenges continuing due to the non-fructification of the proposed merger with LVB as well as the public interest litigation (PIL) recently filed against the company which can have an impact on investor confidence. The company raised around Rs 7,500 crore in the second quarter of fiscal 2020 as compared to around Rs 10,000 crore raised in the first quarter of fiscal 2020 and around Rs 17,000 crore in last quarter of fiscal 2019. Closely. However, there seem to be signs of improvement in first fortnight of October 2019 with IBHFL having received sanctions to raise Rs. 5200 crore via term loans, working capital lines, commercial papers and securitization lines, of which around Rs 3195 crore has been in the past one weekWe will also closely monitor the progress on proceedings pertaining to the public interest litigation (PIL) recently filed against the company. The company, on its part, has strongly refuted the allegations against it in the PIL. Any potential adverse impact on the company's ability to raise funding in the near to medium term on account of these developments will be monitored For fiscal 2019, IBHFL had a profit after tax (PAT) of Rs 4,091 crore on a total income of Rs 17,027 crore, compared with a PAT of Rs 3,895 crore and total income of Rs 14,959 crore in the previous fiscal.. We have exposure to secured bonds maturing in March 2020 and continue to monitor the situation closely
HINDALCO INDUSTRIES LTD
Rating: CRISIL AA (POSITIVE), CARE AA+ StableRating change in last month: No changeSector: MetalsAbout: Hindalco, the flagship company of the Aditya Birla group, commenced operations in 1962 with an
aluminium unit at Renukoot, Uttar Pradesh. It has become the largest integrated aluminium manufacturer in India, with capacity to produce 1,300 kilo tonne per annum (ktpa) of aluminium and 2,900 ktpa of alumina. The company also has a custom smelter in the copper business. The company made a consolidated PAT at Rs. 5495cr for FY19 compared to Rs. 4518cr in FY18 and the consolidated Net Debt to EBITDA was at 2.48 times as at 31st Mar 2019 compared to 2.82 times as on 31st Mar 2018
CHAMBAL FERTILISERS LTD
Rating: CRISIL AA (stable)/A1+ , ICRA A1+Rating change in last month: No changeSector: FertilisersAbout: Incorporated in 1985 in Kota (Rajasthan), Chambal has the largest installed urea capacity of 3.07 mn ton
(1.34 mn ton of urea unit at Gadepan-III recently commissioned in January 2019) in the private sector in India. Company is also into trading of complex fertilisers and pesticides. Chambal, a part of the KK Birla Group, is the largest private player in the Indian urea sector by production capacity, with an 8.5% share in the total domestic urea production in fiscal 2018. The company's urea plants are located near the head of the Hazira-Bijapur-Jagdishpur gas pipeline, thereby ensuring gas availability. Since, urea expansion project at Gadepan III is now operating at a healthy capacity, it is expected to replace the imports currently taking place in the northern region and thus, its market position is expected to improve further to 13-14% of total domestic urea production. EBITDA margin and interest coverage ratio, were 12.1% and 4.9 times respectively, as on March 31, 2019; against 10.9% and 5.3 times (after netting off-project related interest cost which was capitalised during the year) respectively, in the corresponding period of the previous fiscal. Chambal fertilisers & chemicals had a turnover of Rs.10,177 Crore (standalone) and net profit of 585 crores as on FY19 as compared to turnover of Rs. 7557.16 crore and net profit of Rs.495 crs on a year on year basis.
ESSEL MINING AND INDUSTRIES LTD
Rating: CRISIL AA- (stable)/A1+ , CARE A1+, ICRA A1+Rating change in last month: No changeSector: MetalsAbout: Essel Mining and Industries Ltd (EMIL), closely held by the Aditya Birla group, is an established player in
the iron ore mining business, with a track record of over 50 years. The company is also one of the largest manufacturers of noble ferro-alloys in the country, producing ferro-molybdenum and ferro-vanadium at its unit in Gujarat and catering to the domestic special and alloy steel industries. EMIL also operates a 75-MW wind-power generation unit in Maharashtra. Additionally, the company has commissioned a solar power generation project of 20-MW under the Rajasthan State Solar Policy, and another 35-MW solar power generation project under the Andhra Pradesh State Solar Policy. Furthermore, the company has investments in several Aditya Birla group companies through a subsidiary, IGH Holdings Pvt Ltd (IGH). As on July 17, 2019, the market value of IGH’s listed investments stood at Rs. 13,387-crore. Given the sizeable quantum of its investments, EMIL remains a strategically important company to the Aditya Birla Group, which provides support to the rating. In FY2019, EMIL received an equity infusion of Rs. 1446.7 crore from holding company as well typifying support from the Aditya Birla Group. In FY2019, the company reported a standalone net profit of Rs. 895.5 crore (provisional) on an operating income of Rs. 3472.5 crore (provisional), compared to a net loss of Rs. 1726.1 crore on an operating income of Rs. 932.8 crore in the previous year.
HERO CYCLES LTD
Rating: CRISIL AA (stable)/A1+ , Rating change in last month: No changeSector: Consumer goodsAbout: Hero Cycles, incorporated in 1956, is the largest bicycle manufacturer in the world. The company has a
manufacturing capacity of 6.5 million bicycles per year, with units in Ludhiana, Punjab; Bihta, Bihar; and Ghaziabad, Uttar Pradesh. It also manufactures automotive rims and components. Hero Cycles is managed by Mr Pankaj Munjal and his family. In fiscal 2016, the group completed three acquisitions: Firefox, Avocet, and BSH. Firefox is a leading player in the premium bicycles segment in India and currently sells over 100 different models. Avocet is one of the top three distributors of bicycles, e-bikes, bicycle parts, and accessories with a presence across Europe. BSH is a bicycle manufacturer based in Sri Lanka, with a state-of-the-art manufacturing plant that will be used to supplement the Hero Cycles group's sales in southern India and Europe. Hero Cycles entered the real estate business through MHPL, and acquired an under-construction hotel property in Gurugram in fiscal 2012. Hero Cycles repaid the debt contracted for the acquisition through liquidation of investments. However, the plan to build a hotel has been scrapped. MHPL has now entered into a JV with the Godrej Group by selling stake in this company for which they have received more than Rs. 400cr. They propose to construct a commercial park on the property. Hero cycles earned revenues of app. Rs. 215cr in FY19 compared to Rs. 1816cr in FY 18. PAT for the fiscal 2019 was 21cr vs 23cr in the previous year
ULTRATECH CEMENT LTD
Rating: CRISIL AAA (stable)/A1+ , India Ratings ltd AAA(stable),A1+Rating change in last month: No changeSector: CEMENT & CEMENT PRODUCTSAbout: Ultratech Cement ltd (‘UCL’) is India’s largest manufacturer of grey cement, ready mix concrete and white
cement in India. It has 12 integrated plants, one clinker plant, 20 grinding units, seven bulk terminals, and two white cement and putty plants. Its operations span across India, the UAE, Bahrain, Bangladesh and Sri Lanka. UCL has a market share of 24% in India with 113.35 million tonne per annum (mtpa) capacity. Operating efficiency is superior, driven by strong consumption norms, efficient logistics (because of pan-India presence), and captive power capability. As on Sep 30, 2019, Grasim (the flagship company of the Aditya Birla group) held 60.2% equity stake in UltraTech, the other promoter group held 1.49%, and financial institutions and the public held the rest. During fiscal 2019, UCL, on a consolidated basis, had a net profit of Rs 2,432 crore with operating income of Rs 37379 crore, against a net profit of Rs 2,224 crore with operating income of Rs 31,439 crore in fiscal 2018.
RELIANCE INDUSTRIES LTD
Rating: CRISIL AAA (stable)/A1+ , ICRA AAA (stable)/A1+, India Ratings AAA (stable)/A1+, CARE AAA (stable)/A1+
Rating change in last month: No changeSector: EnergyAbout: Reliance Industries Limited (RIL) is one of India's largest private sector companies (maket cap > 8lakh
crores as on 30th Sep 2019), with diverse interests, including petrochemicals, oil refining, and upstream oil and gas E and P.. In the recent past, RIL has diversified into newer businesses which includes organized retail and digital services. RIL operates one of the most complex refineries globally which improves its flexibility in terms of crude sourcing resulting in relatively high Gross Refining Margins (GRMs). RIL’s strength in the petrochemicals business has also grown following large-scale capacity expansions, including the refinery off-gas cracker, in the previous fiscal and healthy ramp up of operations. The company’s digital services venture, where it has made sizeable investments, has been gaining subscribers at a healthy pace since inception and has achieved a subscriber base of 331.3 million as on June 30, 2019. On August 12, 2019, Reliance Industries Limited (RIL) announced that it has signed a non-binding Letter of Intent (LoI) with Saudi Aramco1 for the sale of 20% stake in the former’s Oil to Chemicals (O2C) division to Saudi Aramco. RIL’s O2C division includes its refining and petrochemicals business along with RIL’s 51% stake in its recently announced petroleum marketing JV with British Petroleum Plc (BP). As a part of the deal, Saudi Aramco would supply 500,000 barrels per day (equivalent to ~25 million metric tonnes per annum) of crude oil to RIL’s refinery in Jamnagar on a long-term basis. The deal values RIL’s O2C division at an Enterprise Value of US$ 75 billion which translates to an investment of US$ 15 billion from Saudi Aramco. The transaction is subject to due diligence, regulatory and other approvals. The investment proceeds from Saudi Aramco along with another US$ 1 billion from BP for the latter’s 49% stake in RIL’s fuel retail business would help RIL achieve significant deleveraging. Moreover, the company announced the sale of its telecom tower business in July 2019 to Brookfields Asset Management Company, that was already transferred to an investment infrastructure trust (InvIT) as of March 31, 2019, for Rs. 25,215 crore. RIL transferred its fiber assets to another InVIT and plans to sell those assets to a strategic investor by March 2020.
HOUSING DEVELOPMENT FINANCE CORPORATION LTD
Rating: CRISIL AAA (stable)/A1+ , ICRA AAA (stable)/A1+, CARE AAA (stable)/A1+Rating change in last month: No changeSector: Financial ServicesAbout: Housing Development Finance Corporation Limited (HDFC), India’s premier housing finance entity, is in
existence for over 40 years. With a presence in banking, insurance and asset management, the HDFC Group is an important part of the Indian financial services sector. HDFC’s has a strong franchise and has demonstrated ability to grow in the competitive mortgage finance market, its focus on prime salaried customers within the home loan segment and its good asset quality indicators over credit cycles. HDFC has a strong capitalization (capital adequacy ratio of 19.1% with Tier-I of 17.5% as on March 31, 2019), moderate gearing (4.87 times as on March 31, 2019) and good profitability indicators (return on equity of ~13.51% during FY2019). During FY2019, HDFC reported a total income of Rs. 43,378 crore and had an asset base of Rs. 4,58,776 crore compared to a total income of Rs. 40,707 crore and an asset base of Rs. 3,98,910 crore in FY2018. HDFC reported Profit After Tax (PAT) of Rs. 9,632 crore during the year ended March 31, 2019 compared to Rs. 10,959 crore during the year ended March 31, 2018
LIC HOUSING FINANCE LTD
Rating: CRISIL AAA (stable)/A1+ , ICRA A1+, CARE AAA (stable)Rating change in last month: No changeSector: Financial ServicesAbout: LIC is the single-largest shareholder in LIC Housing with a stake of 40.31% as on Jun 30, 2019. It is India's
second-largest housing finance company, with 9 regional offices, 23 back offices, and 273 marketing units in India, and 2 overseas representative offices (1 each in Dubai and Kuwait), as on March 31, 2019. LIC Housing benefits from LIC's strong brand equity, access to its agency network for origination of loans, and funding support. LIC Housing has comfortable capitalization with a large capital base of Rs 16259 crore as on March 31st 2019. It also had comfortable capital coverage for net non-performing assets (NPAs) of 7.9 times as on Mar 31, 2019. However, gearing, at 10.5 times as on Mar 31, 2019 (10.2 times as on March 31, 2018), was higher than that of peers. It has adequate asset quality with a gross NPA ratio of 1.53% as on March 31, 2019 (0.78% as on March 31, 2018). For fiscal 2019, profit after tax (PAT) was Rs 2431 crore on total income (net of interest expenses) of Rs 4505 crore, against PAT of Rs 2002.50 crore on total income (net of interest expenses) of Rs 3815 crore for fiscal 2018.
GODREJ AGROVET LTD (‘GAVL’)
Rating: ICRA AA (Stable)Rating change in last month: No changeSector: Consumer goodsAbout: Godrej Agrovet Limited is a part of the Godrej Group, which has diverse business interests spanning home
appliances, fast moving consumer goods, consumer products, industrial products, oleo chemicals, animal feed, real estate development, crop protection, and oil palm plantation through various Group companies. GAVL’s product segments primarily cater to the rural sector and agricultural community. On a standalone basis, the company has three major business segments—animal feed, vegetable oil (palm oil) and crop protection (agri inputs). The company is one of the largest organised animal feed manufacturers in India. It offers cattle, layer, broiler, shrimp and fish feed in its product portfolio. As on March 31, 2019, GAVL had around 68,400 hectares of palm tree plantations across nine states for producing crude palm oil, palm kernel oil and palm kernel cake. It is also a niche player in select agri-inputs like insecticides, fungicides, soil conditioners and organic manure, with a pan India network of ~6,500 distributors. GAVL is a subsidiary of Godrej Industries Limited (GIL, rated [ICRA]AA (Stable) / [ICRA]A1+, which held a 58.15% stake in GAVL as on June 30, 2019), the flagship company of the Godrej Group, a large and established business house in the country. This imparts strong financial flexibility to GAVL, as it helps it to maintain good access to capital markets and enjoy healthy relationships with the banks. In Q1 FY2020, on a standalone basis, GAVL reported a profit after tax (PAT) of Rs. 68.3 crore on an operating income (OI) of Rs. 1,252.3 crore, as compared to a PAT of Rs. 73.0 crore on an OI of Rs. 1,110.0 crore in Q1 FY2019.
CHOLAMANDALAM INVESTMENT & FINANCE LTD
Rating: CRISIL AA+ (stable)/A1+ , ICRA AA+ (stable)/A1+, CARE AA+ (stable), India Ratings AA+(Stable)Rating change in last month: No changeSector: Financial ServicesAbout: CIFCL, a non-banking finance company, is a part of the Chennai-based Murugappa Group of companies.
Incorporated in 1978, CIFCL operates through 999 branches across 27 states with assets under management of Rs. 57,494 crore as of June 2019. The company’s core business segments include vehicle finance (75%) and HE loans (21%). In FY2019, CIFCL (standalone) reported a net profit of Rs. 1,186 crore on a managed asset base of Rs. 59,097 crore compared to a net profit of Rs. 918 crore on a managed asset base of Rs. 44,761 crore in FY2018.
Axis Bank Ltd
Bank Of BarodaBank Of IndiaBharat Petroleum Corporation LtdChambal Fertilisers & Chemicals LtdCholamandalam Investment & Finance Co.LtdCoastal Gujarata Power LtdDewan Housing Finance Corp Ltd.
Ess Kay Fincorp Ltd.
Essel Mining & Industries Limted
Export Import Bank Of India Ltd
Godrej Agrovet Ltd
Hdfc Bank Ltd
Hero Cycles LtdHindalco Industries Ltd.Hindustan Petroleum Corp LimitedHousing Development Finance Corp.Icici Bank LtdIndia Infoline Housing Finance LimitedIndiabulls Housing Finance Ltd.Indian BankIndian Oil Corp. LtdIndian Railway Finance CorporationIndusind BankKotak Mahindra Bank.Lic Housing Finance LtdNabardNational Thermal Power CorporationPower Finance Corporation LtdPower Grid Corporation Of India LtdReliance Industries LtdRural Electrification Cor LtdSidbiSteel Authority Of IndiaUltratech Cement Ltd
Principal Credit Risk
Fund
Principal Dynamic
Bond Fund
Principal Low Duration
Fund
Principal Short Term Debt Fund
Principal Ultra
Short Term Fund
Principal Cash
Management Fund
Issuer
Issuer wise Holding as on October 31, 2019
DISCLAIMER
Disclaimer:
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. The views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Diversification does not guarantee investment returns and does not eliminate the risk of loss. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Past performance may or may not be sustained in future. The views and strategies described may not be suitable for all investors. Furthermore, whilst it is the intention to achieve the investment objective of the investment product(s), there can be no assurance that those objectives will be met. Investors are advised to consult their Investment advisors for determining their risk appetite and Tax Advisor before taking any investment decision.
The data/statistics/ comments are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Principal Credit Risk Fund (An open ended debt scheme predominately investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds))This Product Is Suitable For Investors Who Are
~Seeking -• Income over a Medium to long term investment
horizon. • Investment in AA and below Rated Corporate Debt
& other Debt and Money Market Instruments.
Riskometer
Investors understand that their principal will be at moderate risk
LOW HIGH
Moderate ModeratelyHighModerately
Low
HighLo
w
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Ultra Short Term Fund (An open ended ultra-short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 months and 6 months)This Product Is Suitable For Investors Who Are
~Seeking -• Income over a short term investment horizon. • Investment in Debt & Money Market instruments.
Riskometer
Investors understand that their principal will be at moderately low risk
LOW HIGH
Moderate ModeratelyHighModerately
Low
HighLo
w
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Cash Management Fund (An Open-ended Liquid Scheme)
This Product Is Suitable For Investors Who Are ~Seeking -
• Income over a short term investment horizon.• Investment in debt & Money Market Instruments,
with maturity not exceeding 91 days.
Riskometer
Investors understand that their principal will be at low risk
LOW HIGH
Moderate ModeratelyHighModerately
Low
HighLo
w
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Low Duration Fund (An open ended low duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 6 months and 12 months)This Product Is Suitable For Investors Who Are
~Seeking -• Income over a short term investment horizon.• Investment in Debt & Money Market Instruments.
Riskometer
Investors understand that their principal will be at moderately low risk
LOW HIGH
Moderate ModeratelyHighModerately
Low
HighLo
w
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Short Term Debt Fund (An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years)
This Product Is Suitable For Investors Who Are ~Seeking -
• Income over a medium term investment horizon.• Investment in Debt & Money Market Instruments.
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Principal Dynamic Bond Fund (An open ended dynamic debt scheme investing across duration)
This Product Is Suitable For Investors Who Are ~Seeking -
• Income over a long term investment horizon.
• Investment in Debt & Money Market Instruments.
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Riskometer
Investors understand that their principal will be at moderate risk
LOW HIGH
Moderate ModeratelyHighModerately
Low
HighLo
w
Riskometer
Investors understand that their principal will be at moderate risk
LOW HIGH
Moderate ModeratelyHighModerately
Low
HighLo
w