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An ELSS from DBS Chola As Well


The past few weeks have seen a slew of ELSS funds being launched by various fund houses. And with the fiscal year approaching its last quarter, this doesn't come as a surprise. This is the time when most people are thinking about their taxes and hence, ELSS funds stand out as one of the finest tax-saving instruments.

Well, the latest fund house to launch an ELSS fund is DBS Chola Mutual Fund. the AMC has launched a ten-year close-ended tax saving scheme - DBS Chola Tax Advantage Fund Series 1.

A diversified fund, the scheme will invest primarily in equity and equity related securities. However, as per its mandate, the fund may also invest in debt and money market instruments, limited to an exposure of maximum 20 per cent.

Fund Manager:
Mr. Anant Deep Katare will be the fund manager of this scheme. He has over 11 years of experience in the financial market. Currently, he manages six different schemes of DBS Chola Mutual Fund, out of which only DBS Chola MIP holds an impressive track record and a 5-star rating. He also manages a tax saving scheme, DBS Chola Tax Saver Fund with assets worth Rs. 19.11 crores. The scheme's performance hasn't been impressive and currently has a 1-star rating.

AMC Performance:
DBS Chola Mutual Fund has been around for over a decade but is struggling hard to make its presence felt in the competitive mutual fund industry. The AMC's Assets Under Management (AUM) stood at a meagre Rs. 1121.5 crores in November 2008.

Suitability & Recommendation:
The AMC has failed to charm investors. However, its recent recruitment of Sanjay Sinha (Ex- SBI MF) who will be the Chief Executive Officer and Mohit Sachdev (Ex - UTI) who will be the Chief Marketing Officer brings some hope for improvement in the AMC's performance. But this will take some time as well. Thus, under the current circumstances, attracting investors for this new offer will be a difficult task ahead.

Basic Details:
NFO Opens: December 19, 2008
NFO Closes: March 19, 2009
Options: Cumulative and Dividend (Payout)
Minimum Application Amount: Rs 500
Load Structure:
Entry Load: 2.25 per cent, for investment below Rs 2 crore
Nil, for investment above Rs 2 crore
Exit Load: Nil
Benchmark: BSE 200
Fund Manager: Mr. Anant Deep Katare
Lock In period: 3 years