Reliance Mutual Fund has filed a draft offer document with SEBI to launch its close ended Rajiv Gandhi Equity Savings Scheme (RGESS). The scheme consists of six different schemes within it i.e from scheme 1 to scheme 6. The maturity period of scheme 1 to scheme 3 will be 3 years while the maturity period of scheme 4 to scheme 6 will be 5 years.
The scheme seeks to provide capital appreciation to the investors along with the income tax benefits under Section 80 CCG of the IT Act. The scheme will invest in predominantly RGESS eligible securities. The scheme may also invest a certain portion of its corpus in cash equivalent and money market instruments from time to time.
The
benchmark of the scheme will be S & P BSE 100. No exit loads will be
charged in the scheme. The minimum amount for application in the NFO is Rs
10,000. The fund will be managed by Krishan Daga. It should be noted that the
Finance Minister P Chidambaram has just made an announcement that the investors
who are earning up to Rs 12 lakh per annum could invest in RGESS for three
years.
