DBS Chola MF plans tax saving product

DBS Chola Mutual Fund is mulling the idea of launching an tax savings scheme by the end of this fiscal.

The company is yet to file an application with Sebi in this regard. "We are yet to apply to the regulator, hence the time of launch is subject to Sebi's approval but yes we are contemplating on that and would be happy to launch it by the end of this fiscal if we do get the nod," said Vineet Potnis, chief marketing officer of DBS Chola MF.

The company has already have the approval from Sebi for a "Dynamic Equity Fund" , a flexible fund, which allows the fund manager to switch the entire portfolio into cash and cash equivalents in case he perceives significant downside risk in the markets. It would be a closed end product, indicated Potnis.

However if the company can manage the necessary clearances for the tax savings scheme then it could defer the launch of the dynamic equity fund by a quarter.

"We intend to launch one fund by the end of this fiscal, if we can manage the tax savings scheme by March then the launch of this dynamic equity scheme would be postponed till the next quarter," he explained.

Potnis was in the city on Wednesday to announce the launch of its DBS Chola Small Cap Fund, a three year close-ended fund.

Potnis said, "The new fund provides the investors the opportunity to diversify their investment portfolios into the small cap asset class. Since most equity are skewed towards large cap or mid cap stocks, a dedicated small cap fund could ensure better diversification and superior solution to investors' portfolios."