Principal PNB rolls out new fund

Principal PNB Asset Management Company, in association with Vijaya Bank, today launched its new three-year close-ended debt fund "� Principal PNB Fixed Duration Fund 3-Year Plan-Series I.

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.