DBS Chola MF Announces Merger Of Two Schemes

DBS Chola Mutual Fund has announced the merger of DBS Chola Floating Rate Fund with DBS Chola Short Term Floating Rate Fund on 11 June 2007. DBS Chola Floating Rate Fund-Dividend Option will merge with DBS Chola Short Term Floating Rate Fund- -Monthly Dividend Option (Payout or Reinvestment - default being reinvestment) and DBS Chola Floating Rate Fund-Cumulative Option with DBS Chola Short Term Floating Rate Fund- Cumulative Option.
Consequent to the merger, DBS Chola Floating Rate Fund shall cease to exist while DBS Chola Short Term Floating Rate Fund will retain its identity with all the features available prior to merger. DBS Chola Short Term Floating Rate Fund was launched in August 2005 and DBS Chola Floating Rate Fund in August 2004. As on 31 March 2007 the net assets under management of DBS Chola Short Term Floating Rate Fund were Rs. 653.50 crore and that of DBS Chola Floating Rate Fund were Rs. 2.76 crore.

As a result of merger, the units of DBS Chola Floating Rate Fund will be converted into units of DBS Chola Short Term Floating Rate Fund at no cost - i.e. no exit load will be charged. Conversion of units will take place at applicable NAV as on the date of merger. In other words, the transaction will result into switch from DBS Chola Floating Rate Fund to DBS Chola Short Term Floating Rate Fund. Alternatively, you can also redeem your investment held in the plans before the date of merger without any exit load.