Skip to main content

DBS Chola Mutual Fund Turns Into L&T Mutual Fund

In the wake of engineering behemoth Larsen & Toubro taking over DBS Cholamandalam Asset Management Ltd (DCAM) through its arm L&T Finance Ltd for Rs 45 crore in September, 2009, changes will be happening that investors need to keep a track of. 

 

All regulatory approvals have been taken from authorities (December 23, 2009 from SEBI), and now DBS Chola Mutual Fund will be renamed as L&T Mutual Fund, while DCAM will be renamed as L&T Investment Management Ltd, while DBS Cholamandalaam Trustees Ltd will be renamed as L&T Mutual Fund Trustee Ltd.

 

The full responsibility of management, administration and trusteeship of the schemes and assets too will fall into the realm of the new entity.

Also subject to change will be the names of the various schemes, with L&T replacing the pre-fix DBS Chola on all schemes.

 

The fund house is offering its unit holders a chance to exit at applicable net asset value (NAV), without paying any exit load from January 15, 2010 – the offer is valid for one month after that date.

 

However, the exit option shall not be open for those unitholders whose investments have not completed the statutory lock-in periods under Section 80C of the Income Tax Act.

 

Also, unitholders of DBS Chola Infra Fund and DBS Chola Smallcap Fund, which are close-ended, will have to pay an early exit charge equivalent to the unamortized new fund offer expenses, if the withdrawal is before the 3-year period from the date of allotment.

 

The fund house has also intimated that there will not be any fundamental changes to the ongoing schemes, including investment objectives. 

DBS Cholamandalam was formed in 1996 and has over 200,000 customer accounts. The AMC was a joint venture between the Chennai-based Murugappa Group and Singapore's DBS Bank.

 

L&T had taken over the AMC after paying Rs 45 crore for just 1.56 per cent of its assets in August, which were then at Rs 2,893.16 crore. As of December 31, 2009, the assets are Rs 2,901 crore.

Cholamandalam AMC had reported a loss of Rs 38 crore for the fiscal ended March, 2009. 

 

The intent, by L&T was to effect greater synergies in its own financial services business. L&T has two wholly-owned subsidiaries in the form of L&T Finance and L&T Infrastructure Finance, servicing mainly the construction equipment finance and commercial vehicles as well as tractors segment. Their asset size was then reportedly Rs 9,000 crore

 


Popular posts from this blog

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now