Principal Mutual Fund (formerly known as IDBI-PRINCIPAL Mutual Fund) has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882). The Mutual Fund is registered with SEBI under Registration No. MF/019/94/0, dated December 13, 1994. The underlying objective of Principal Mutual Fund is to mobilise savings from the public, provide investment expertise to achieve optimal returns on their investments.
The Fund was initially set up by Industrial Development Bank of India (IDBI) in 1994 by execution of a Trust Deed dated November 25, 1994, under which IDBI was the sole Settlor, Subsequently, on March 31, 2000, Principal Financial Services Inc. USA became the deemed sponsor (along with the IDBI) by acquiring 50% stake in IDBI-PRINCIPAL Asset Management Company Limited. In June 2003, Principal Financial Services Inc. USA became the sole sponsor by acquiring 100% stake in IDBI-PRINCIPAL Asset Management Company Limited, through its wholly owned subsidiary Principal Financial Group (Mauritius) Limited (Principal Mauritius). Principal Mauritius has become the sole settlor of the Fund. Name of the Asset Management Company was changed to Principal Asset Management Company Private Limited, to reflect the change in ownership.
In May 2004, Principal admitted two Public Sector Banks - Punjab National Bank and Vijaya Bank into the venture.
Accordingly, Principal Mauritius, Punjab National Bank and Vijaya Bank have 65%, 30% and 5% respectively of all the rights, title, interest and obligations as co-settlors to Principal Mutual Fund.
Sponsor: Principal Financial Services Inc.,USA[through its subsidiary Principal Financial Group(Mauritius)Ltd
Trustee: Principal Trustee Company Pvt. Ltd.
Investment Manager: Principal Pnb Asset Management Company Private Limited.
Statutory Details: Principal Mutual Fund, a trust set up under the provisions of the Indian Trust Act, 1882 and registered with SEBI bearing Registration No. MF/019/94/0 dated December 13, 1994.