DBS Chola Mutual Fund announced the launch of DBS Chola Tax Advantage Fund – Series 1. The fund is a 10 - year close ended Equity Linked Saving Scheme (ELSS), subject to a lock in for a period of three years from date of allotment. 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. (View - New Fund Offers open NOW)

The NFO will remain open for subscription between December 19, 2008 and March 19, 2009.

Sanjay Sinha, Chief Executive Officer, DBS Cholamandalam Asset Management Ltd. 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 NFO period will be Rs 500/- and in multiples of Rs 500 thereafter. The fund would invest between 80- 100% in Indian equities and equity related securities and 0% to 20% in money market instruments / debt securities instruments. The scheme will charge an entry load of 2.25% for investment less than Rs 2 crore. Exit load Nil.

The performance of the Plan will be benchmarked against the BSE 200 Index.