IDBI Principal Income Fund has declared a second quarterly dividend of 2.5% (Rs 0.25 per unit). The record date has been fixed as June 15, 2001. The Fund paid its maiden dividend of same amount in March 2001.
Falling in the open-end medium term debt category, IDBI Principal Income Fund has posted a simple return of 10.66% since its launch in October 2000. The fund with investments in AAA quality papers, including an average 30% allocation to G-secs, has in its brief tenure actively realigned its portfolio maturity in line with the two interest rate cuts in the current calendar. In its tenure, the fund has been an above average performer.