LIC Nomura Mutual Fund announces the launch of ‘Rajiv Gandhi Equity Savings Scheme Fund- Series II’ (RGESS), a close ended equity oriented scheme investing in BSE 100 AND CNX 100 stocks. It also provides tax benefits under Section 80CCG for the investors and is aimed to inculcate retail participation in the domestic market.
An investor will be:
· an individual who has not opened any demat account as on 23.11.2012 or
· an individual who has opened a demat account before 23.11.2012 but has not made any transactions in the equity segment or the derivative segment till 23.11.2012 or
· an individual who is not the first account holder of an existing joint demat account
The Income Tax benefit is available to the investors of LICNMF RGESS Series-2 under Demat account mode.
The New Fund Offer (NFO) is open for subscription from 28th February, 2014 and will close on 14th March, 2014. The minimum investment is Rs 5000 and thereafter in multiples of Re 1.
Speaking on the announcement, Mr. Nilesh Sathe, Director & Chief executive Officer, LIC Nomura Mutual Fund said “We received an overwhelming response from the investors for the ‘Rajiv Gandhi Equity Savings Scheme Fund- Series I’ and hence we are glad to announce the launch of ‘RGESS Series II’. It has been launched keeping in mind the first time investors who do not have the time and expertise to directly invest in stock markets.”
The investment objective of the scheme is to generate capital appreciation from a portfolio that is substantially constituted of equity securities which are specified as eligible securities for Rajiv Gandhi Equity Savings Scheme (RGESS). The product is designed to provide exclusive 50% deduction from income for investment up to Rs 50,000 over and above deduction of Rs. 1, 00,000 under Section 80C. It is available for investment to existing RGESS investors and also for those who want to invest in diversified equity portfolio over atleast three year horizon without 80CCG benefits.