| The new fund seeks to invest a substantial portion of its portfolio in medium-term AAA- and quality AA-rated papers maturing in line with duration of the plan, thus eliminating the risk of market volatility, according to a Principal PNB AMC press release. |
| The rest of the fund's portfolio will be invested in equity shares of fundamentally strong companies with a focus on initial public offers to enhance the returns from equity component of the fund. |
| A portion of the fund will also be invested in mid-cap and large-cap stocks, making it an all-growth portfolio in line with the long-term nature of the investment, the release added. |
| "The fund also offers triple indexation benefit that reduces the tax liability, enabling it to deliver tax-efficient returns to the investor," the release said. |
| The new fund offer will remain open from May 22, 2006 to June 15, 2006. |
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