ICICI Pru Launches Nifty ETF RGESS Eligible Scheme

An ETF has the following advantages

· One can buy and sell on the stock exchange at real time prices

· Units are delivered in Demat account

· One can buy as less as one unit

To add to this ICICI Prudential Nifty ETF is Rajiv Gandhi Equity Savings Scheme (RGESS) Eligible.

· RGESS is a tax saving scheme announced in the Union Budget 2012-13

 · Eligible retail individual investor gets deduction u/s 80CCG of the Income Tax Act, 1961 (the Act)

 · Amount of deduction: 50% of the amount invested, maximum amount of investment eligible for tax benefit is Rs.50,000/-

 · Eligibility: First time retail individual investors in securities market whose gross total income for the year is less than or equal to Rs.10 lakh

Note: Please refer to the RGESS, 2012 notified by the Central Government on November 23, 2012 and SEBI Circular no. CIR/ MRD/DP/32/2012 dated December 06, 2012 for additional details or consult your financial advisor to learn more.

One must however, note that all investors who are eligible to invest in mutual funds can invest in ICICI Prudential Nifty ETF, irrespective of the amount and whether they are availing the tax benefit under RGESS or not.

Scheme Features

Type of Scheme Open-ended Index Exchange Traded Fund
Investment Objective

To provide returns before expenses that closely corresponds to the total return of the Underlying Index, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Underlying Index

CNX Nifty Index

Minimum Application Amount (NFO and Post NFO)

During NFO: Rs.5000/- and in multiples of Re.1

Post NFO: Units will be created in unit creation size (currently 50000 units). Investors can buy or sell units (minimum 1 unit) on a continuous basis on the National Stock Exchange.

LoadsEntry: Not Applicable ; Exit: Nil
Fund ManagerMr. Kayzad Eghlim
LiquidityListed on NSE. Kindly refer SID for further details.
Dematerialization1. Units of the Scheme will be available only in the Dematerialized form.

2. The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account number with DP.

3. For claiming deduction under section 80CCG of the Act, eligible investors are required to have DP account as specified in RGESS 2012. Investors are requested to approach their respective DPs/ financial advisors for details.  NFO PeriodMarch 1, 2013 to March 18, 2013

You may check Presentation of this product from here and KIM from here.


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