Capital markets regulator Sebi on Thursday said Principal Mutual Fund (PMF) now ceases to exist as a mutual fund.
This comes after Asset Management Private Limited (Principal AMC) had informed Sebi that it wanted to surrender the registration granted to PMF by the regulator.
Following this, Sebi accepted the request for surrender of certificate of registration of PMF.
"Consequently, PMF ceases to exist as a mutual fund with effect from June 2, 2022," the Securities and Exchange Board of India (Sebi) said in a statement.
It further said PMF will continue to be liable for all liabilities, including monetary penalties, violations, if any, of the provisions of Sebi Act and mutual fund rules that have taken place before its surrender of certificate of registration.
In January 2021, Sundaram Asset Management Company announced acquiring smaller rival Principal Asset Management for an undisclosed sum.
Principal had over Rs 7,447 crore in assets under management as on December 2020, with 90 per cent of them being in equity-oriented schemes.
FAQs
Capital markets regulator Sebi on Thursday said Principal Mutual Fund (PMF) now ceases to exist as a mutual fund. This comes after Asset Management Private Limited (Principal AMC) had informed Sebi that it wanted to surrender the registration granted to PMF by the regulator.
Which mutual fund ceases to exist? ›
A fund can cease to exist if it fails to perform and investors withdraw their funds. A closed mutual fund should not be confused with a closed-end fund, which has a fixed number of shares, generally invests in specialized sectors, and trades like a stock on a stock exchange.
Will we lose principal in mutual fund? ›
Generally speaking, most mutual funds are invested in securities such as stocks and bonds where, no matter how conservative the investment style, there will be some risk of losing your principal.
What happens when a mutual fund is discontinued? ›
In the case of a Mutual Fund company shutting down, either the trustees of the fund have to approach SEBI for approval to close or SEBI by itself can direct a fund to shut. In such cases, all investors are returned their funds based on the last available net asset value, before winding up.
What happens to Principal Mutual Fund? ›
Capital markets regulator Sebi on Thursday said Principal Mutual Fund (PMF) now ceases to exist as a mutual fund. This comes after Asset Management Private Limited (Principal AMC) had informed Sebi that it wanted to surrender the registration granted to PMF by the regulator.
Who took over Principal Mutual Fund? ›
Sundaram Mutual Fund (MF) completed the acquisition of Principal Mutual Fund on 31 December 2021.
What is the oldest mutual fund still in existence? ›
The first modern mutual fund was launched in the U.S. in 1924. The oldest mutual fund still in existence is MFS' Massachusetts Investors Trust (MITTX), also established in 1924. The exchange-traded fund, a modern variation, has taken the market by storm since the Great Recession of 2007–2009.
Which mutual fund closed in India? ›
List of Closed Ended Funds in India
| Name of the scheme | Returns |
|---|
| SBI Tax Advantage Fund – Series III – Regular Plan | 2.61 | 9.60 |
| ICICI Prudential Growth Fund – Series 2 | 3.31 | 10.98 |
| SBI Tax Advantage Fund – Series II | -2.26 | 9.68 |
| ICICI Prudential Growth Fund – Series 1 | 4.39 | 9.08 |
4 more rowsInherent in all closed-end bond funds are market risk and credit risk. Market risk involves the potential impact of increasing interest rates, which could lead to a decrease in the value of the fund's bond holdings.
Can you lose your principal investment? ›
Investing involves risk, including possible loss of principal.
You will need to visit the website of your mutual fund and log in with your credentials. You will need to select the fund and the number of units you want to redeem and confirm your request. You will receive the redemption amount in your bank account within a few days, depending on the type of fund.
Does principal have mutual funds? ›
Principal Mutual Funds
View all of Principal's mutual funds and start searching for your next investment. Below are pre-screened investment lists to kickstart the process. All lists can be further sorted by data points such as Morningstar Ratings, Total Return Rankings, Fee Level Rating and Morningstar Category.
Should I withdraw my mutual fund now? ›
If a fund consistently underperforms over multiple periods and fails to deliver satisfactory returns, consider exiting the investment. Research and select funds with a similar investment objective but better track records and performance history to redirect your investments.
Should I get out of mutual funds now? ›
However, if you have noticed significantly poor performance over the last two or more years, it may be time to cut your losses and move on. To help your decision, compare the fund's performance to a suitable benchmark or to similar funds. Exceptionally poor comparative performance should be a signal to sell the fund.
What is the meaning of discontinued fund? ›
"Discontinued Policy Fund" means the segregated fund of the insurer that is set aside and is constituted by the fund value of all discontinued policies determined in accordance with these regulations.
What is the new name of principal MF? ›
Sundaram Mutual Fund takes over Principal Mutual Fund | Value Research.
What is the old name of Principal Mutual Fund? ›
It was founded as a trust in 1882, following the rules of the Indian Trusts Act. It was previously known as IDBI Principal Mutual Fund; however, the IDBI Group is no longer linked with the fund company. On 31st December 2021, Sundaram Asset Management Limited acquired Principal Asset Management Private Limited.
How do I redeem my Principal Mutual Fund? ›
You simply have to log-on to the 'Online Transaction' page of the desired Mutual Fund and log-in using your Folio Number and/or the PAN, select the Scheme and the number of units (or the amount) you wish to redeem and confirm your transaction.
