Chola MF launches Chola Tax Saver Fund

Chola Mutual Fund unveiled its Chola Tax Saver Fund, an open ended Equity Linked Savings Scheme (ELSS) and a diversified equity fund with a lock period of three years.

Addressing a press conference on the launch Tridib Pathak, chief information officer, Cholamandalam Asset Management Company (AMC), said, "Individuals and HUFs can avail of tax deduction up to Rs 1 lakh under Section 80C of the Income Tax Act."

With the Development Bank of Singapore (DBS) taking a 37.5 per cent stake in Cholamandalam Investment and Finance Company, there will be a change in brand name. The Cholamandalam Investment and Finance Company Limited, the parent company of Chola Mutual Fund, will be called as DBS Cholamandalam and consequently the AMC will be called as DBS Chola Mutual Fund.

"The regulatory approval is in the process and we expect everything to be over by the next two months," said Pathak.

The pattern of stakeholding will be a 37.5 per cent owned by Murugappa group, another 37.5 per cent by DBS and the remaining 25 per cent with the public, he said.

The scheme offers both dividend and cumulative options. Units will be offered at Rs 10 per unit plus applicable load. However, there will be no load for investments done through SIP route. The new fund offer is open for subscription till 26th October 2005.