Principal Mutual Fund has launched the ‘Principal Emerging Bluechip Fund’, in the Indian market.

The fund is an open ended equity scheme with primary objective to achieve long-term capital appreciation by investing in equity and equity related instruments of mid cap and small cap companies.

The fund is open for subscription from September 22, 2008 till October 10, 2008

For the purpose of maintaining liquidity or tap market opportunities the fund’s portfolio may also include large cap stocks. The Scheme will offer Growth Option and Dividend Option.

The minimum application amount is Rs 5,000 and the fund will attract an entry load of 2.25%, if the investment is less than Rs 5 crore. Apart from this, the fund will charge an exit load of 2.25%, if redeemed before one year from the date of allotment.

The Benchmark for the fund will be CNX Midcap Index, and will be managed by Pankaj Tibrewal.

Principal Mutual Fund (MF), formerly known as IDBI- Principal Mutual Fund, is a partnership between US based Principal Financial Group and nationalized banks Punjab National Bank and Vijaya Bank.

Recently, the company has entered into a partnership with India’s leading public sector lender, United Bank of India for distribution of its products through the bank’s branch network.