Birla Sun Life Mutual Fund launches BSL RGESS – Series 1

Birla Sun Life Asset Management Company Limited (BSLAMC), a part of Aditya Birla Financial Services Group (ABFSG), announced the launch of Birla Sun Life Rajiv Gandhi Equity Savings Scheme-Series 1 (BSL RGESS – Series 1), a 3-year close-ended Equity Mutual Fund eligible under Rajiv Gandhi Equity Savings Scheme (RGESS) 2012.

The scheme offers both – first time and existing equity investors across the country, an opportunity to participate in India’s expected robust economic growth, through investment in blue chip companies which are a part of BSE-100, CNX-100 and Public Sector Enterprises (PSE) categorised as Navratnas, Maharatnas and Miniratnas as per the Central Government.

Categorised under Tax savings solutions of Birla Sun Life Mutual Fund, BSL RGESS – Series 1 will invest in a mix of top 100 listed companies of India and quality PSE stocks to create a diversified portfolio of securities.

The objective would be to identify business with superior growth prospects and strong management available at reasonable valuation and offering higher risk adjusted returns. These companies, being amongst the strong contributors to economic growth, investments in BSL RGESS – Series 1 will allow investors the opportunity to grow with India’s expected robust economic growth.

The New Fund Offer (NFO) commenced on Monday, February 25, 2013 and closes on Wednesday, March 20, 2013. The minimum investment during the NFO will be Rs 5,000/- and in multiples of Rs.10/- thereafter. The benchmark index for the scheme is CNX-100.

The normal allocation of the scheme will be up to 95%-100% of assets in equity securities specified as eligible securities for RGESS and invest up to 5% in cash and cash equivalents and money market instruments.

Investment in BSL RGESS – Series 1 provides tax benefits under RGESS 2012* (read with Section 80CCG of the Income tax Act) for first time retail investors having gross total income less than or equal to Rs. 10 lakh. Even retail investors who have been investing in equities or derivatives can optimize BSL RGESS – Series 1 for wealth creation opportunity, although they will not be eligible to avail tax benefits from the same.

Commenting on the launch Mr. A. Balasubramanian, CEO, Birla Sun Life Asset Management Company Ltd., said “It gives us great pleasure to present Birla Sun Life Rajiv Gandhi Equity Savings Scheme – Series 1 to retail investors, with an objective to encourage retail participation in equity markets.

We see RGESS as a great enabler to inculcate long term investment practice amongst first time investors and help them appreciate risk adjusted returns from mutual fund investments. With recent announcements in the Union Budget 2013 with respect to RGESS, its importance and applicability have only been re-emphasized.”

The Fund Manager for Birla Sun Life Rajiv Gandhi Equity Savings Scheme – Series 1 is Mr. Nishit Dholakia who manages Birla Sun Life Dividend Yield Plus, Birla Sun Life Pure Value Fund and Birla Sun Life ’95 Fund (jointly managed with Mr. Prasad Dhonde).

The fund manager would primarily focus on long term growth for identifying stocks. The Scheme would follow blend of bottom up approach (for stock selection) and top down approach (for sector allocation).

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