A change in the asset allocation pattern of Principal Ultra Short Term Fund (erstwhile Principal Liquid Plus Fund) has been proposed which shall be effective from March 24, 2009. Post change, the fund shall be be investing upto 100 per cent of its assets into Debt Instruments and Money Market Instruments (including MIBOR linked instruments with daily put and call option) and shall keep the average maturity of instruments upto 1 year.
Currently, the fund keeps an average maturity of more than 90 days but less than 1 year. The change being fundamental in nature, unit holders have been given an option to redeem their investments without any exit load between February 20, 2009 to March 23, 2009. There shall be no tax impact of the proposed change for the investors who shall continue to stay invested in the scheme.