DBS Chola MF launches Tax Advantage Fund- Series 1

DBS Chola Mutual Fund on Friday launched DBS Chola Tax Advantage Fund – Series 1. The fund is a 10 - year close ended equity linked saving scheme, subject to a lock in for a period of three years from date of allotment. The fund which opened December 19, will close on March 19. The objective of the scheme is to seek to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities and also enabling investors to get income tax rebate as per the prevailing Tax Laws and subject to applicable conditions. The fund, benchmarked against BSE 200 Index would invest between 80- 100% in Indian equities and equity related securities and 0% to 20% in money market instruments / debt securities instruments. Sanjay Sinha, chief executive officer, DBS Cholamandalam Asset Management said, "this fund will follow 'value investing strategy'. Current market conditions favour this strategy as it limits the downside potential of these stocks. In addition to the tax benefit, a 3 year lock-in allows investors to realise a better potential for their investment." The minimum amount for application during the new fund offering period will be Rs. 500 and in multiples of Rs. 500 thereafter. There is an entry load of 2.25% for investment less than Rs. 2 crore. No entry load will be charged for investment beyond Rs 2 crore.
Source:http://economictimes.indiatimes.com/Personal_Finance/Mutual_Funds/DBS_Chola_MF_launches_Tax_Advantage_Fund-_Series_1/articleshow/3863299.cms