The Hindu Business Line : Principal PNB AMC launches infrastructure & services fund

PRINCIPAL PNB Asset Management Company on Monday announced the launch of its mutual fund scheme `Principal Infrastructure & Services Industries Fund', which will invest in equities of companies in the infrastructure and services sectors.

Addressing a news conference here, Mr Sanjay Sachdev, Managing Director and CEO of Principal PNB AMC, said the new fund offer was aimed at giving maximum returns by investing in companies in the two key sectors of the Indian economy — infrastructure and services industries.

Principal Infrastructure & Services Industries Fund is the only diversified equity fund, which will invest jointly in infrastructure and services industries, said Mr Sachdev.

The new fund offer will invest in infrastructure companies involved in capital goods, construction, cement, IT hardware and commercial vehicles and in companies in services such banking and finance, healthcare, hotels, media and entertainment, and software.

The scheme will not invest in companies in the FMCG sector, pharmaceuticals, fertilisers, pesticides, sugar, paper and auto (passenger car) sectors.

Mr Sachdev said the asset management company (AMC) plans to come out with innovative products this year. These products will help increase its total assets under management from Rs 7,000 crore to Rs 15,000 crore by the end of this calendar.

Mr Rajat K. Jain, Chief Investment Officer, Principal PNB AMC, said the AMC continued to be bullish on the Indian stock markets. He said till now the stock markets were driven by the P/E re-rating. He said the Indian markets would be able to give 18-20 per cent returns on a three-year time frame.

Mr Shyam Bhat, Assistant Vice-President, Principal PNB AMC, said the P/E re-rating factor, which was key to the bullish trend, was nearing an end. "From now on, the earnings growth will drive the markets," Mr Jain said.

The new fund offer gives the investor two investment options — growth and dividend. The period will be from January 9 to 31.