HDFC Mutual Fund, India’s largest fund house with consistent fund performance, announces the launch of HDFC Rajiv Gandhi Equity Savings Scheme – Series 1, (HDFC RGESS), a 3 year close-ended equity scheme investing in Eligible Securities as per Rajiv Gandhi Equity Savings Scheme, 2012 (‘RGESS’).
HDFC RGESS would invest in a portfolio of diversified equities – either from BSE-100 or CNX-100, Public Sector Enterprises categorized as Maharatna, Navratna, Miniratna, and also in Follow on Public Offer of all Eligible Securities and IPOs of public sector undertaking, where government shareholding is at least 51% and annual turnover is not less than Rs 4,000 crores during each of the preceding three years.
Mr. Milind Barve, MD, HDFC AMC said: “The investment strategy of the Scheme is to help the new retail investors build and maintain a quality, diversified portfolio of “Eligible Securities as specified under RGESS’’ that would have the potential to appreciate in the long term. Further, additional tax benefit under section 80CCG is an added advantage to new retail investors.”
HDFC RGESS would have equity allocation of Eligible Securities of a minimum 95 per cent and Money Market instruments & Liquid schemes towards the maturity and to the extent necessary to meet the liquidity requirements for honoring redemptions, up to a maximum of 5 per cent.
From the tax benefit point of view, investment in HDFC RGESS is eligible for 50% tax deduction of the invested amount under section 80CCG of the Income – tax Act, 1961 for new retail investors investing up to Rs. 50,000 and having gross total annual income less than or equal to Rs. 10 lakhs. This deduction is over and above the Rs. 1 lakh limit offered under section 80C of the Income – tax Act, 1961.
The minimum investment in HDFC RGESS is Rs. 500 and in multiple of Rs. 10 thereafter. However there is no upper cap on investment. HDFC RGESS would benchmark its investment performance against BSE-100 Index.
The Fund Manager for HDFC RGESS is Mr. Srinivas Rao Ravuri.
Please note that though the KIM reads the closing date as 15th March, it has been preponed to 8th March .