IDBI Balanced Fund

IDBI PRINCIPAL BALANCED FUND

Initial offer opens: October 3,2000
Closing Date: October 21, 2000
Nature of Scheme: Open Ended
AMC: IDBI-PRINCIPAL Asset Management Company Limited
Load:1% for investment greater than or equal to Rs.1 cr. 1.75% on investment less than Rs.1 cr. (For ongoing subscriptions)
No exit load.

Continuous Offer opens: December 1, 2000
Sponsor: IDBI and Principal Financial Services Inc.
Trustee: IDBI
Minimum subscription:Rs.5,000 and in multiples of Re.1. NRIs can apply on repatriable basis.

Objective of the present fund: To provide periodic returns and capital appreciation from a mix of equity and debt instruments.
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Highlights

IDBI is a leading financial institution in India and one of the largest banks in the world.
Principal Financial group is a leading financial services company in the world.
This scheme offers dividend option and Growth option.
Unit holders have switching facility from one scheme to other.
Tax Free dividend in the hands of investors

Strategy of investment

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51% to 70% of the investible funds into equity and equity related instruments and the balance in debt and money market instruments.

Some of the Schemes launched by IDBI

IDBI Principal Equity Fund(Gr)

IDBI Principal Money Market Fund

IDBI Principal Deposit Fund Bond Plan(Gr)

Performance overview of the IDBI

Name of the Fund	NAV as on 29.09.2000	NAV as on 31.08.2000	NAV as on 31.07.2000
IDBI Principal Equity Fund(Gr)	10.55	11.89	10.52
IDBI Principal Money Market Fund	10.97	10.96	10.93
IDBI Principal Deposit Fund Bond Plan(Gr)	10.19	10.10	NA

Comparative Analysis of similar other funds

Name of the Fund	NAV as on 29.09.2000	NAV as on 31.08.2000	NAV as on 31.07.2000	NAV as on 30.06.2000	NAV as on 31.05.2000	NAV as on 28.04.2000
Birla Balanced Fund (Gr)	11.25	12.16	11.21	12.41	11.47	12.42
DSPML Balanced Fund(Gr)	10.42	11.12	10.66	11.59	10.96	11.2
Kothari Pioneer Balance (Gr)	8.46	9.00	8.63	9.23	8.97	9.47
Prudential ICICI Balanced (Gr)	9.64	9.93	9.45	10.22	9.59	10.37

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The above table shows that the NAVs depend on the market movement. During April and June investors are benefited due to market boom. In the other period, NAVs does not show good returns.

Risk Perception

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The fund of other companies shows mixed trends but inclined towards the stock markets. This balanced fund though not as risky as equity fund does not show good benefits. But the risk is minimised with the mixed investment portfolio. Hence the risk averse people can prefer it.