HDFC & Reliance too launch RGESS
HDFC and Reliance announced the launch of their Rajiv Gandhi Equity Savings Scheme (RGESS), joining fund houses like Birla Sun Life, IDBI, DSP Black Rock, Kotak, Quantum, LIC Nomura which have recently launched their RGESS.
HDFC’s fund is called RGESS – Series 1 while Reliance has launched its RGESS under R* Shares CNX 100 Fund.
HDFC RGESS opened for subscription on February 18 and closes on March 08. R* Shares CNX 100 Fund opened on February 19 and closes on March 15.
“RGESS is an innovative step aimed to encourage new retail investors to invest in the capital markets. We foresee an additional investment of Rs. 75,000 crore flowing into the equity market through various RGESS schemes being launched by the industry,” said Sundeep Sikka, CEO, Reliance Mutual Fund.
HDFC RGESS will 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 undertakings where government shareholding is at least 51% and annual turnover is not less than Rs 4000 crore during each of the preceding three years.
The minimum investment in HDFC RGESS is Rs. 500 while in the case of Reliance it is Rs 5000.
New retail investors as defined under the RGESS scheme with income below Rs 10 lakh annually, can avail an additional tax benefit under new section 80 CCG for maximum investment up to Rs 50,000. This benefit is over and above the Rs. 1 lakh exemption limit available as regular benefit under Sector 80C.
