Date:29/04/2005 URL: http://www.thehindubusinessline.com/2005/04/29/stories/2005042902161500.htm

Back Chola Mutual plans four more products

C.R. Sukumar

Hyderabad , April 28

CHOLA Mutual Fund, a Murugappa Group company, has firmed up plans to introduce four more mutual fund products soon. It currently has 11 schemes and manages funds in excess of Rs 1,000 crore.

The Chennai-based company has already submitted its proposals on two products to the Securities and Exchange Board of India (SEBI) and expects its approval shortly, the Chola Mutual Chief Marketing Officer, Mr Vineet Potnis, told Business Line.

The first product, Tax Saver, offers benefits under Section 88 of Income-Tax Act. Following the changes proposed by the Union Ministry of Finance for the said Section during the recent Budget, the market regulator is currently awaiting clarity on the Section and benefits before approving the product, he said.

The second product, Dynamic Index Fund, which proposes to invest in 50 stocks of Nifty, is also awaiting the SEBI approval, Mr Potnis said. The company plans to introduce the Tax Saver at the earliest so as to attain a sort of completeness to its product basket, he said.

The mutual fund company has also designed two debt products and would be submitting them to SEBI for its approval shortly. These products include Short-term Floating Rate Fund and Fixed Maturity Plan.

The company has already tied-up with HDFC Bank, ICICI Bank and Union Bank for the distribution of its mutual fund products. Stating that around 10 per cent of its business currently comes through banking channel, he said the company is negotiating with couple of banks for similar alliances and expects the business from banking channel to improve to over 25 per cent of total volumes. These banks include Andhra Bank and StanChart Bank.