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The move is to comply with new regulatory requirements, according to a statement from the fund house. The Securities and Exchange Board of India decided to raise the minimum networth of mutual funds from Rs.10 crore to Rs.50 crore in February this year.
Ned Burmeister, Senior Vice President and Chief Operating Officer of Principal International said the infusion of capital is in keeping with their expansion plans, in a statement issued on the development.
"This is in line with our ambitious plans for expansion & consolidation in our chosen emerging economies. We firmly believe in India's long term growth story and the potential of its Mutual Fund Industry and are confident that the Principal's brand along with its global investment expertise will eventually make us the most preferred asset manager in the area of goal & advisory voluntary savings including providing for retirement."
Rajan Ghotgalkar, Country Head, Principal India in the same statement said that new products are in the pipeline.
"We are very upbeat about the long term potential of the Indian Mutual Fund Industry. We now look forward to aggressively pursue our plans to introduce new products with distinct value proposition in line with our true-to-label philosophy," he said.
