LIC Nomura Mutual Fund launched its Rajiv Gandhi Equity Saving Scheme (RGESS) Series 1, a close ended equity tax advantage savings scheme for equity investors in India.
LIC Nomura Mutual Fund launched its Rajiv Gandhi Equity Saving Scheme (RGESS) Series 1, a close ended equity tax advantage savings scheme for equity investors in India. The scheme offers tax benefits under Section 80 CCG, over and above the tax rebate offered under Section 80 C of the IT Act, 1961.Under the scheme, an individual with an income of up to Rs 10 lakhs would get tax incentives for investing up to Rs 50,000.
The New Fund Offer (NFO) will open for subscription on February 9, 2013 and close on February 25, 2013. The units will be available at par (Rs.10/-) during the NFO and at NAV related prices thereafter. The scheme will not be open for subscription on an ongoing basis.
Speaking on the launch, Mr. Nilesh Sathe, Director & Chief Executive Officer, LIC Nomura MF thanked Ministry of Finance for such novel initiative and said “The scheme will encourage flow of saving in financial instruments and improve the participation in domestic capital market and will also provide tax rebate to the investors”.
The investment objective of the scheme is to generate opportunities for growth while providing income tax benefits under section 80CCG of the Income Tax Act 1961 by active management of portfolio investing predominantly in RGESS eligible equity and equity related instruments.
The benchmark index for the fund is BSE 100 Index.