Principal Mutual Fund will rename Principal Asset Allocation Fund as Principal Retirement Savings Fund with effect from June 11, the fund house said in an addendum.
Subsequently, the fund house will revise the benchmark and asset allocation of 3 plans under the scheme -- conservative, moderate and aggressive.
The scheme will have a lock-in period of five years, or till the retirement age of 60 years, from the date on which the units are allotted.
The revision comes in the wake of guidelines released by the Securities and Exchange Board of India (SEBI) on October 6. The new norms require fund houses to segregate existing and future schemes into five broad categories and 36 sub-categories for ease of investing.
The revision is as follows:
| PARTICULARS | EXISTING PROVISIONS | REVISED PROVISIONS |
| Scheme Name | Principal Asset Allocation Fund | Principal Retirement Savings Fund |
| Type of Scheme | An open-ended fund of funds scheme | An open-ended retirement solution oriented scheme having a lock-in period of 5 years or till retirement age |
| Fund Manger | Rajat Jain | P. V. K Mohan |
| ASSET ALLOCATION |
| Conservative Plan | --70-100 percent in units of debt or liquid mutual funds --Up to 30 percent in units equity mutual funds | --65-90 percent in equity and equity related instruments of which : (a) 20-35 percent in net long equity exposure including units of equity funds (b) 40-70 percent in equity exposure only in arbitrage opportunity--10-35 percent in debt and money market instruments and fixed income derivatives |
| Moderate Plan | --40-80 percent in units of debt or liquid mutual funds --20-60 percent in units of equity mutual funds --Up to 10 percent in units of gold mutual funds or exchange traded funds | --65-70 percent in equity and equity related instruments --30-40 percent in debt including securitised debt and money market instruments including liquid or money market and debt mutual fund schemes |
| Progressive Plan | --70-90 percent in units of equity mutual funds --10-30 percent in units of debt or liquid mutual funds --Up to 10% in units of gold mutual funds and exchange traded funds | --65-100 percent in equity and equity related instruments --Up to 35 percent in debt including securitised debt and money market instruments |
| BENCHMARK | ||
| Conservative Plan | 85 percent CRISIL Short Term Bond Index + 15 percent Nifty 50 Index | 30 percent Nifty50 + 70 percent CRISILLiquid Fund Index |
| Moderate Plan | 60 percent CRISIL Short Term Bond Index + 40 percent Nifty 50 Index | CRISIL Hybrid 35+65 - Aggressive Index |
| Progressive Plan | 20 percent CRISIL Short Term Bond Index + 80 percent Nifty 50 Index | Nifty 200 Full Market Cap Index |
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