IDBI PRINCIPAL GROWTH FUND
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  • 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. 2% 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.
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Objective of the present fund: To achieve long term capital appreciation.
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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.
  Strategy of investment
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90% of the investible funds would be in Equity and equity related instruments and the rest will be in Debt and Money Market instruments.
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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
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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

Alliance Equity Fund(Gr)

 36.12 37.75 34.89 39.93 35.26 38.89
ING Growth Portfolio (Gr) 17.07 19.66 16.66 19.7 16.31 21.25
K-30 (Gr) 17.64 19.53 18.18 20.36 18.96 21.29
Prudential ICICI Growth Plan (Gr) 21.91 22.84 21.31 24.35 22.02 NA
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The above table reveals that the NAVs  depend on the market movement. During April and June investors were benefited due to market boom. Market volatility plays a vital role in deciding NAVs in Growth Funds.
  Risk Perception
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The volatility of the market has a significant impact on the fund. Investors in this fund   may be benefited in the long run but at the same time they must be prepared to take the risk.  Growth funds are known for high volatility hence the investors should not aim at high return.
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