Many AMCs are planning their next series of Rajiv Gandhi Equity Savings Scheme (RGESS) but this time in an open ended avatar so that the product could be available to investors right through the year. AMCs have approached SEBI to give them the go ahead for launching open ended variants of RGESS.
LIC Mutual Fund is planning to launch its RGESS Series II next year in an open ended version for which it is said to have received SEBI approval.
UTI Mutual Fund is also considering launching an open ended RGESS.
“We are working on plan to launch an open ended RGESS. The idea is good but it requires more groundwork on how to make it possible,” said a senior official from leading fund house.
Some fund officials are of the view that RGESS can be launched like interval funds which are open for subscription for a fixed period predetermined by AMCs.
Currently, as per RGESS notification only closed end or FTFs structures are possible. The listing and demat requirements stipulated in the notification are deterrents to the launch of open ended RGESS. The open end structure allows them to market the fund more effectively.
