Govt. Approved: Rajiv Gandhi Equity Saving Scheme – One of the best investment options
Finally, Govt of India approved the Rajiv Gandhi Equity Saving Scheme yesterday.
Below are highlights of Rajiv Gandhi Equity Saving Scheme
- This scheme is aimed to new investors who want to invest up to ₹ 50,000 in capital markets and whose annual income is up to ₹ 10 lakhs
- The investment can be done in blue-chip private and public sector companies. The scheme covers stocks listed in BSE 100, CNX 100 and Navarathna, Maharathna and Minirathna public sector firms.
- The investment can also be done in Mutual funds and listed exchange traded funds (ETF’s)
- Investors can also invest in IPO (initial public offers) and FPO (follow-up public offers) of public sector companies whose turnover is ₹ 4,000 crores+ where Government also gets benefitted towards its move to disinvestment.
- Tax deduction eligible is 50% of the investment.
- Lock-in period is for 3 years.
Conclusion: This scheme is one of the best investment options for a new investor who want to participate in capital market, mutual funds and ETF’s. However one should exercise caution while investing in direct stock markets, as they are risky. Look for best stocks or good mutual funds suitable for you, before investing.
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Suresh
Happy investing in the Best investment Options
Founder at Myinvestmentideas.com
Suresh KP is the founder of MyInvestmentIdeas.com, which he has run since 2011. He has over 23 years of experience across investments, mutual funds, stock markets, insurance, taxation and financial planning, and has written 2,500+ articles for Indian retail investors. He has completed NISM Investment Adviser (Level 1 & 2) and NISM Research Analyst certifications. Articles on this site compare publicly available data for educational purposes; Suresh is not a SEBI-registered investment adviser. More about his background: About Suresh KP | X (Twitter)
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Disclaimer: This article is for education and comparison only and is not investment, insurance or tax advice. Suresh KP is not a SEBI-registered investment adviser. Investments are subject to market risks. Read all offer, scheme and policy documents carefully before making any decision. Tax rules change often; verify with the current law or a qualified tax professional.
2 comments
Add a comment ↓Hi,
I have a demat a/c with few shares that I bought few years back. But I'm not active in market. Can I buy any mutual fund under this equity scheme to save tax over & above 1 lakh ie investing 50000 to save 25000 from taxable income?
Preity, you should be a new entrant to market to be eligble under this scheme