IDBI mutual fund & DSP Black rock mutual fund have recently declared New Fund Offers eligible under Rajiv Gandhi Equity Saving Scheme.
NFO Details are as follows:
IDBI RGESS Series-1:
- NFO opening date:Feb 11, 2013
- NFO Closing date: Feb 25, 2013.
DSP BlackRock RGESS Series-1:
- Issue Open date:Feb 14, 2013
- Issue Close Date:Feb 28, 2013.
Both schemes are 3-year closed ended scheme and will offer tax benefit under RGESS upto max amount of investment of Rs.50,000/- which will result in max tax saving of Rs.5000/- depending on tax bracket.
NFOs will be listed at NSE / BSE & investor need to have demat account to apply for above NFOs.
Though these schemes are open to all investors, only eligible investors can take benefit under RGESS which can be summarized as below:
- Resident individual with Gross total annual income up to Rs. 10 lakh.
- Do not have any equity securities in demat account as on 23rd Nov 2012.
- Have not made any transcations made before 23rd Nov 2012.
These Funds will invest in:
- Equity shares – included in CNX 100 or BSE -100.
- Equities of PSU companies having status of Maharatna,Navratna,Miniratna by central Govt.
- IPOs or FPOs of above companies.
Bottomline:
Though these funds are offering tax benefits,one should carefully judge the eligibility as well risk capacity.One should understand that there will be maximum tax saving of Rs.5000/- after investment of Rs.50000/- with risk of equity market.
