Chennai, 2 March 2007: DBS Chola MF today announced the launch of its open ended fund, DBS Chola Hedged Equity Fund. The investment objective of the fund is to generate long-term capital appreciation by investing in equity, equity related and derivative instruments. The fund seeks to minimize risk by use of hedging tools such as index and stock derivative instruments. The aim is to generate returns with lower volatility. The new fund offer will open for subscription from March 1, 2007 and will close on 23rd March, 2007.

"Investors who are concerned about the stock market volatility can consider investing in DBS Chola Hedged Equity Fund. The fund would use an active hedging strategy to reduce the effect of market swings on the fund's long term performance resulting in more consistent returns with lower volatility" said Rajnish Narula, Chief Executive, DBS Chola Mutual Fund.

The scheme offers both cumulative and dividend options. Units will be offered at Rs 10 per unit plus applicable load. The minimum application amount during the offer period is Rs 5000/- and in multiples of Re 1/- thereafter. Investors can also invest in DBS Chola Hedged Equity Fund through the SIP route.

About DBS Cholamandalam Asset Management Limited
DBS Cholamandalam Asset Management Limited (DCAM) is the asset management company and the investment manager of DBS Chola Mutual Fund, which offers mutual funds to retail, high networth and institutional investors. Established in 1996, the company manages funds in excess of Rs.2000 crores (as of Jan 31, 2007) across 18 schemes with over 200,000 customer accounts. Known for its prudent and disciplined investment philosophy, DCAM products cover the entire range of cash, debt and equity asset classes. DCAM is present in over 22 locations in the country and also has a strong distribution network.

About Cholamandalam DBS Finance Limited
(Cholamandalam DBS) is a joint venture between the Murugappa Group and DBS Bank of Singapore. The Company, along with its subsidiaries and affiliates offers individual and institutional customers a range of financial services - personal loans, vehicle finance, home equity loans, capital market finance, corporate finance, mutual funds, securities broking and distribution of investment and insurance products. The Company's shares are listed on Bombay (BSE) and National (NSE) stock exchanges.

About Murugappa Group
Headquartered in Chennai, the $1.6 billion Murugappa Group is India's leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states. The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India.

About DBS
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the Bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin, Dongguan and Hangzhou. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and the highest among banks in Singapore.

Contact Information

Haresh Sadani
Assistant Vice President - Marketing
DBS Cholamandalam Tel: 044 2821 7294
Tel: 022 66574024/4000
Cell: +91 98203 49310
Email: hareshs@dbschola.murugappa.com

Ms. Anu / Batool
General Manager
IPAN
Tel: 0 98410 39574