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IDBI-Principal Income Introduces Short Term Plan

IDBI-Principal Mutual Fund seems to be on a revamp mood. After launching a Monthly Income Plan (MIP) last week, the mutual is coming out with a Short Term Plan (STP) under the Income Fund. The fund's initial offer is open for subscription for one day, i.e, April 24, 2002. The initial issue expenses will be borne by the AMC. It will be open for on-going subscription from April 25, 2002 onwards.

The STP will have a separate portfolio from that of the Income Fund. The fund will invest 100 percent of its assets in debt and money market instruments with an average maturity of 6 to 18 months.

Entry into the fund is on a no-load basis. However, an exit load of 0.25 percent will be charged if redeemed within 30 days. The fund offers Growth and Dividend options. Dividend option will have three sub-options - The Payout option, Re-investment option and Sweep option. The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. Subsequent investment amount shall be Rs 500 and in muliples of Re 1 thereafter.

With this, the IDBI-Principal will complete its range of bond fund offerings.