The NFO of both funds are currently
open for subscription.
Sun Life and LIC Nomura have launched second series of their Rajiv Gandhi
Equity Savings Scheme (RGESS). Both funds are currently open for subscription
and close on March 14. Incidentally, this will be the second RGESS to be
launched by Birla Sun Life this year.
far this year, only three fund houses - ICICI Prudential, Birla Sun Life and
HDFC have come out with their RGESS fund. While ICICI Equity Saving Fund Series
1 has collected Rs. 45 crore this year, Birla Sun Life Focused Equity Series 1 has
mopped up roughly Rs. 60 crore. The NFO of HDFC RGESS Series 2 is to close on
MF too is planning to launch RGESS.
Sun Life Focused Equity Fund – Series 2 is a three year close ended fund which aims
to generate capital appreciation by investing in a portfolio of equity
instruments qualified for RGESS. The fund will invest in shares of companies
from BSE 100, CNX 100 and PSU Navratnas, Maharatnas and Miniratnas. Anil Shah
will manage the fund. The scheme would follow a blend of bottom up approach
(for stock selection) and top down approach (for sector allocation). The fund
manager would primarily focus on long term growth for identifying stocks. The
objective would be to identify business with superior growth prospects and
strong management available at reasonable valuation and offering higher risk
against S&P BSE 100 index, LIC Nomura Rajiv Gandhi Savings Scheme Fund –
Series II aims to provide capital appreciation from a portfolio that is
substantially constituted of equity securities which are specified as eligible
securities for RGESS. The minimum investment is Rs 5000. The fund will invest
in stocks of BSE 100 and CNX 100. The investment strategy
involves the analysis of the fundamentals and evaluation of the attractiveness
of investment opportunities. Such analysis includes historical as well as
current financial condition of the company, quality of the management, business
prospects and valuation. Nobutaka Kitajima and Ramnath Venkateswaran will
co-manage the fund.
press release, Nilesh Sathe, Director & Chief executive Officer, LIC Nomura
Mutual Fund said “We received an overwhelming response from the investors for
the ‘Rajiv Gandhi Equity Savings Scheme Fund- Series I’ and hence we are glad
to announce the launch of ‘RGESS Series II’. It has been launched keeping in
mind the first time investors who do not have the time and expertise to
directly invest in stock markets.” The first series of LIC
Nomura RGESS has an asset under management of Rs 17 crore as on December 31,
is designed to provide 50% deduction from income for investments of up to Rs
50,000 which is over and above deduction of Rs 1 lakh under Section 80C of
Income Tax Act.
year, six fund houses had collected close to Rs. 230 crore. Value Research data
shows that AUM of HDFC RGESS Fund Series I is Rs. 113 crore as on December, 31
2013. Similarly, AUM of Birla Sun Life RGESS Fund Series 1, DSPBR RGESS Series
1, UTI RGESS Retail and IDBI RGESS Series 1 are Rs. 42 crore, Rs. 44 crore, Rs.
25 crore and Rs. 18 crore respectively as on December 31, 2013.