The NFO of the fund is currently open for subscription and closes on January 30.
LIC Nomura Mutual Fund has launched a third series of its Rajiv Gandhi Equity Saving Scheme (RGESS) called LIC Nomura MF RGESS – Series 3. The NFO of the fund is open for subscription on January 16 and closes on January 30.
RGESS is designed to provide 50% deduction from income for investments of up to Rs 50,000 which is over and above deduction of Rs 1 lakh under Section 80C of Income Tax Act.
Benchmarked against S&P BSE 100 index, LIC Nomura Rajiv Gandhi Savings Scheme Fund – Series III aims to provide capital appreciation from a portfolio that is substantially constituted of equity securities which are specified as eligible securities for RGESS. The minimum investment is Rs 5000. The fund will invest in stocks of BSE 100 and CNX 100. The investment strategy involves the analysis of the fundamentals and evaluation of the attractiveness of investment opportunities. Such analysis includes historical as well as current financial condition of the company, quality of the management, business prospects and valuation. Nobutaka Kitajima and Ramnath Venkateswaran are the fund managers of the scheme.
Value Research data shows that the fund house manages AUM of Rs.39 crore in both the series of RGESS schemes. In fact, the first series of its RGESS has outperformed its benchmark and delivered a one year absolute return of 44% as on December 2014.
