DBS Chola Mutual Fund (MF) has launched DBS Chola Tax Advantage Fund – Series 1, an equity linked saving scheme (ELSS). The scheme opens for subscription on Dec. 19, 2008 and closes on Mar.19, 2009. The units of the scheme will be available at Rs 10 per unit.

Objective

DBS Chola Tax Advantage Fund – Series 1 seeks 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.

What is Inside?

The duration of the scheme is for 10 years from the date of allotment and has a mandatory lock-in period of 3 years from date of allotment.

The minimum application amount is Rs 500 and Rs 500 thereafter.

Asset Allocation

The scheme aims at investing 80% to 100% in Indian equities and equity related securities and 0% to 20% in money market instruments / debt securities instruments.

Performance and Management

The performance of the scheme will be measured against BSE 200 Index.

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.``