UTI Mutual Fund (UTI) has launched a new close ended scheme “UTI Rajiv Gandhi Equity Saving Scheme”. The scheme opened for subscription on February 9, 2013 and will close on March 8, 2013.
UTI Rajiv Gandhi Equity Saving Scheme (UTI-RGESS) is a qualified mutual fund scheme targeting investment under Government notified Rajiv Gandhi Equity Savings Scheme, 2012(RGESS).
Kaushik Basu, fund manager of the scheme said, “The objective of Rajiv Gandhi Equity Savings Scheme is to encourage the savings of the small investors in domestic capital market. To facilitate this investment UTI has launched a new close ended scheme called ‘UTI Rajiv Gandhi Equity Saving Scheme. UTI-RGESS provides an investment opportunity to new retail investors to invest in equity shares of blue chip companies comprising S&P CNX Nifty at lower cost. The scheme also provides opportunity for capital growth. The investment amount under the scheme will qualify for deduction under Section 80CCG of Income Tax Act 1961.”
UTI-RGESS is a close-ended passive index fund tracking S&P CNX Nifty Index with a tenure of 3 years from the date of allotment. The investment objective of the scheme is to invest in stocks of companies comprising S&P CNX Nifty and endeavour to achieve return equivalent to Nifty by “passive” investment. The scheme will be managed by replicating the index in the same weightage as in the S&P CNX Nifty Index with the intention of minimizing the performance difference between the scheme and the S&P CNX Nifty Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error. The scheme would alter the scrips as and when the same are altered in the S&P CNX Nifty Index.
