IDBI-PRINCIPAL Mutual Fund is extending its family of debt fund with the launch of a Monthly Income Plan (MIP). The fund will initially be open for subscription from April 22 to May 10, 2002 and the initial issue expenses will be borne by the AMC. Like all other open-end MIPs, this fund will also invest up to 15 per cent in equities and 75-100 percent in debt and money market instruments. The fund offers three options - Growth Accumulation Plan, Growth Payout Plan and Dividend Plan (Monthly and Quarterly).
Under the Growth Payout Plan, no dividend will be declared but the units of the value equivalent to the amount of dividend declared under the Monthly/Quarterly Plan would be automatically redeemed to the unit holder.
Dividend Plan will have three options - Dividend Payout, Dividend Re-investment and Dividend Sweep option. Under Dividend Sweep option, the declared dividends would be automatically invested in any other open-ended scheme of the fund specified by the unit holder (or as per his asset allocation mix)
Minimum investment amount is Rs 10,000 and in multiples of Re 1 thereafter under the Dividend and Growth Payout Plan. In the Growth Accumulation Plan, the same is Rs. 5000 and in multiples of Re 1 thereafter.