Calcutta, Nov. 28: DBS Cholamandalam Mutual Fund plans to introduce a scheme that proposes to manage asset allocation in a dynamic manner — switch to debt instruments when the equity market looks dull and vice-versa.

“We have received the approval of the Securities and Exchange Board of India (Sebi). The dynamic plan will be the next offering from the DBS Chola Fund house,” said Vineet Potnis, chief marketing officer of DBS Cholamandalam Asset Management, the investment manager of the mutual fund.

Other fund houses such as HSBC, Kotak and ICICI Prudential have similar products in their portfolios. At present, DBS Cholamandalam Mutual Fund offers a three-year, close-ended equity scheme that invests in companies whose market capitalisation falls between the highest and the lowest constituent of the BSE Small Cap Index. The new fund offer closes on December 20.

JP Morgan Mutual Fund has also launched an equity scheme for small companies.