HDFC MF launches HDFC RGESS-Series 2

NFO period January 30, 2014 – February 24, 2014

February 06, 2014 3:23 IST | India Infoline News Service
HDFC Mutual Fund announced the launch of HDFC Rajiv Gandhi Equity Savings Scheme–Series 2, (HDFC RGESS-2), a 3 year close-ended equity scheme investing in Eligible Securities as per Rajiv Gandhi Equity Savings Scheme.(‘RGESS’).
HDFC RGESS-2 would invest in a portfolio of diversified equities – either from BSE-100 or CNX-100, Public Sector Enterprises categorized as Maharatna, Navratna, Miniratna by Central Government, and also in Follow on Public Offer of all Eligible Securities and IPOs of public sector undertaking, where government shareholding is at least 51% and annual turnover is not less than Rs 4,000 crores during each of the preceding three years.
The Scheme, shall predominantly invest in the Eligible Securities of RGESS (minimum 95%) and shall invest in cash & cash equivalents and money market instruments and liquid schemes (maximum 5%), only to the extent necessary to meet the liquidity requirements for honouring redemptions (at the time of maturity)/expenses.
From the tax benefit point of view, investment in HDFC RGESS-2 is eligible for 50% tax deduction of the invested amount under section 80CCG of the Income - tax Act, 1961 for new retail investors investing up to Rs. 50,000 and having gross total annual income less than or equal to Rs. 12 lakhs. This deduction is over and above the Rs. 1 lakh limit offered under section 80C of the Income - tax Act, 1961.
The minimum investment in HDFC RGESS–2 is Rs. 5,000 and in multiple of Rs. 10 thereafter. However there is no upper cap on investment. The maximum permissible Investment for claiming deduction under RGESS is Rs. 50,000/- and the investor would get a 50% deduction of the amount invested from the taxable income for that year. HDFC RGESS-2 would benchmark its investment performance against S&P BSE 100 Index.
The Fund Manager for HDFC RGESS is Srinivas Rao Ravuri.

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