Principal Mutual Fund has announced a change in the asset allocation pattern of Principal Bank CD Fund, with effect from June 1, 2012.
Now, the scheme will be able to invest upto 90% in Bank Certificate of Deposits (CDs), Repo, CBLO & units of Money Market/Liquid Funds. It will also be investing between 10 to 20% in debt instruments.
Presently, it invests between 80-100% in Bank CDs, upto 10% in Repo, CBLO & units of Money Market/Liquid Funds & upto 20% in debt instruments.
Investors have been given an option to exit without paying any exit load between May 3, 2012 and June 1, 2012.