RGESS eligible mutual funds (NFO) which are open now

RGESS eligible mutual funds (NFO) which are open now

RGESS eligible mutual funds (NFO) which are open now

Market is flooded with Rajiv Gandhi Equity Saving Scheme (RGESS) eligible mutual funds. Under Rajiv Gandhi Equity Saving Scheme, a new investor can participate by investment in equity markets and get tax exemption of Rs 50,000 under Section 80CCG. This is over and above Rs 1 lakh eligible tax deduction under 80C. Last year, Govt has indicated that only direct investment in stock markets for new investors are eligible for tax deduction of Rs 50,000. After several deliberations they have made guidelines where mutual funds can participate in RGESS scheme.

Currently there are two RGESS eligible mutual funds (F) which are open now for investments.

HDFC RGESS Series-1 mutual fund scheme

HDFC RGESS series-1 mutual fund scheme NFO closes on 15-Mar-13. The objective of this mutual fund is to invest in long term capital appreciation in eligible securities as specified in Rajiv Gandhi Equity Saving Scheme. This is an ELSS saving scheme which is open ended. Minimum investment under this scheme is Rs 500.

Also read: Top-10 mutual funds to invest through SIP

Birla Sunlife RGESS – Series-1 mutual fund scheme

Birla Sunlife RGESS series-1 mutual fund scheme NFO closes on 20-Mar-13. The objective of this mutual fund is to invest in eligible securities as specified in Rajiv Gandhi Equity Saving Scheme. This is an ELSS saving scheme which is close ended. The scheme would be for 3 years. Minimum investment under this scheme is Rs 5000.

Conclusion: Investment in Mutual funds carries less risk comparing to direct stock investment. For a new investor, investments in such RGESS eligible mutual funds would be a good opportunity for investment in stock markets. Since these mutual fund schemes are new fund offers, it would be difficult to predict the future performance of such mutual funds. Nevertheless, it is a good opportunity for new investors.

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Suresh
RGESS eligible mutual funds (NFO)

12 comments

  • gaurav

    Sir,
    I am planning to invest 25000 in birla sun life focused equity fund reg NFO. Is it good one or should I wait for any other specific NFO.

  • Keerthi

    Hi Suresh,
    My brother has some stocks in his account. if i open a new demat account(first one) in my name and get the share transferred from his account to mine. then will i be eliigle for RGESS or will i have to buy new stocks only. A new investor by stocks transfer into demat account considered under RGESS.

    • Hi Keerthi, Tricky question. As per the policy you should be a new investor who never invested in stocks. Since your demat account has stock holdings, you would become existing customer, hence I don’t think you would be eligible under RGESS scheme.

  • Kishore

    Hi Suresh,

    As per the scheme investore should not trade and shoudln't possess any demat account till now. In the same way investor is not allowed to invest in other mutual funds through another DP?

    Becasue I'm investing in SBI mutual funds (SBI Magnum global fund). Am I eligible to invest in RGESS? I don't have a demat account till now.

    Please let me know.

    Thank you

    Kishore B

    • Kishore, You can invest in RGESS even if you invested in any of the mutual fundearlier because you have never traded with a demat account. RGESS bestows the ‘first time equity investor’ status to anyone who has not made any purchases in equity or derivative segment through a demat account. 

      • Kishore

        Thank you very much for the clarification. If possible could you please let me know the open ended mutual funds which are open now and advise which is a best one. I'm conservative type investor.

        Thank you very much

        Kishore

        • Currently there are no NFO’s. I am not sure about whether the mutual funds which are opened in Feb/Mar-13 would have been listed now. You can check and invest in them. However there is no guarantee about the performance of such funds as they are still new.

  • Padmanabhan

    Hi Suresh,

    Thanks for the info!

    Is theri any easy way to invest in RGESS Funds ? i mean is there any websites offering to invest from their site instead of filling the form and give it to person etc.

    Regards

    Padmanabhan

     

    • Padmanbhan, all the NFO funds can be invested thru online. One is direct method, you can go to their websites and fill the form and invest. Other method is is going thru the brokers like ICICI direct.com, Fundsindia.com etc.,

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