IDBI Principal Mutual Fund has rechristened its Child I-Nit'97 Scheme as "IDBI-Principal Child Benefits Fund". As against the present 20:80 equity debt mix, the scheme will carry a 40:60 allocation to the debt and equity instruments. With this allocation, the fund is likely to be managed as an open-ended balanced fund.
The two plans namely-: One time Investment Plan and Recurring Annual Investment Plan have been renamed as Career Builder and Future Guard Plan respectively. The investors under the Future Guard Plan will be eligible for Life Risk Cover after the payment of three annual installments with a maximum ceiling of Rs 50000.
IDBI-Principal Child Benefits Fund will also enable pulling out of investments without any mandatory lock-in period of three years. The investors can also redeem their units before expiry of the targeted period, by paying an exit load. A higher load may be charged by the AMC for redemption being made on the demise of the beneficiary.
The AMC had given an exit option of one day ie July 31, 2001 to the investors not in the favor of the changes made in the scheme.