DBS Chola Mutual Fund is betting big on tier II cities this year. The company expects to manage around Rs 4,000 crore in another 12-18 months, and expects the investors from tier II cities to contribute around 10 per cent of its total assets under management. | |
| "We will target the southern region first before moving onto the tier II cities in northern India. Thus, we would be able to capitalise on the brand recognition that we have in South. Also, because the rate of industrial growth in the southern region is greater. Cities like Coimbatore, Salem and Trichy are growing at a faster pace and we would take steps to penetrate these towns this year," Rajnish Narula, chief executive officer, DBS Cholamandalam Asset Management, said. |
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| Currently, its sales team's strength stands at 40 and the company plan to increase it to 60 in another year. "We are also planning to increase our 2,000-strong distributor base by another 1,000 in the next 12 months," Narula added. |
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| DBS Chola Mutual Fund has announced the launch of an open-ended equity fund, the DBS Chola Hedged Equity Fund. This is the first scheme launched after the joint venture between DBS Bank of Singapore and the Murugappa Group. |
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| The purchase units for the new fund offer were opened for subscription on March 1, 2007, and will close on March 23, 2007. |
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| "The asset allocation of the portfolio would see 65-100 per cent investment of funds in equities and equity-related instruments (including equity derivatives instruments) and 0-35 per cent in debt and money market instruments. It is very difficult to comment on how much we can mobilize through this scheme as it is an open-ended fund, and we have no set target for this," R Rajagopal, head-equities, DBS Cholamandalam Asset Management, said. |
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