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Since 1st March, 1999
 
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Mutuals bet on new scope

Mumbai, Feb. 11: Mutual fund houses have started rolling out schemes under the Rajiv Gandhi Equity Saving Scheme (RGESS), which offers a tax break to first-time investors to draw them into the stock markets.

UTI Mutual Fund, IDBI Mutual Fund and SBI Mutual Fund are some of the fund houses to announce such schemes.

UTI Mutual Fund today launched a closed-end scheme called UTI Rajiv Gandhi Equity Saving Scheme. The new scheme has opened for subscription on February 9 and will close on March 8.

The closed-end passive index fund will track the S&P CNX Nifty Index and will have a tenure of three years from the date of allotment. The objective of the scheme is to invest in stocks of companies comprising S&P CNX Nifty and endeavour to achieve a return equivalent to the Nifty through “passive” investment.

“The UTI-RGESS provides an investment opportunity to new retail investors to invest in equity shares of blue chip companies comprising S&P CNX Nifty at lower cost. The scheme also provides opportunity for capital growth,” said Kaushik Basu, fund manager of the scheme.

While the units will be sold at a face value of Rs 10 per unit, the scheme will be available to a new retail investor who complies with the conditions of the scheme and whose gross total income for the fiscal in which the investment is made is less than or equal to Rs 10 lakh.

Under the RGESS, a new retail investor will mean any resident individual who has not opened a demat account and has not made any transactions in the derivative segment as on the date of notification of the scheme or any resident individual who has opened a demat account before the notification of the scheme but has not made any transaction in the equity segment or the derivative segment till the date of notification of the scheme.

IDBI RGESS, which also opened for subscription on the same day, is a closed-end growth scheme with a minimum investment of Rs 5,000 and in multiples of Re 1 thereafter.

The SBI Sensex ETF Scheme will be the first equity ETF that will take an exposure to the defined basket of stocks in the Sensex.

 
 
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