DBS Chola unveils new product

Mutual fund player DBS Chola MF has announced the launch of DBS Chola Fixed Maturity Plan- Series 5 (Quarterly Plan-1) here.

According to the company, the scheme seeks to generate regular returns and capital appreciation by investing in debt, government and money market securities normally maturing in line with the time profile of the plan. The scheme is open for subscription and will close on 5 October, 2006.

The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. Units will be available at Rs 10 each, according to DBS Chola MF sources here. The scheme does not charge any entry load but there is an exit load of 0.5 per cent on investments redeemed within 3 months from the date of allotment.

According to Tridib Pathak, chief investment officer, DBS Chola Mutual Fund, "investors looking for stable returns from short term debt instruments in this volatile interest rate scenario should also look at fixed maturity plans as they enable investors to protect their returns against any interest rate volatility."