RGESS (80CCG): Eligible Mutual Funds for Deduction
There are 5 types of Investments which are eligible for deduction under 80CCG:
- Equity Shares in BSE-100 or CNX 100
- Equity Shares of Maharatna, Navratna, Miniratna
- Units of eligible ETFs or MFs
- Eligible FPOs & NFOs
- IPOs of eligible PSUs
We have already posted the List of Equity Shares of Maharatna, Navratna and Miniratna here.
Now here we bring the Gist of Eligible Mutual Funds and Exchange Traded Funds under RGESS
Mutual Fund Schemes and Exchange Traded Funds
Aiming to give a push to the paining mutual fund industry, the Finance Ministry facilitated mutual funds to be included in REGSS and thereby giving an option to investors to avail the tax benefit by investing in RGESS eligible ETFs and mutual fund schemes.
However this move is in the interest of first time retail investors. As mutual funds provide expertise of professional fund management, it can score over direct investing for the first time retail investors. The first time retail investors may find difficulty in identifying the right stocks and the valuations at what they should include them in their portfolio. But by routing their money through mutual funds, they can be confident that their money will be used more efficiently in identifying the right stocks at right valuations, thereby providing them decent appreciation in future, through a process driven investment strategy.
Now with the tax saving season coming in, Indian mutual fund industry which is already going through a rough phase does not want to be left out in the hoard to garner some fresh AUM from new retail investors. And in this flurry the industry players are floating new RGESS eligible schemes, while some have converted their existing ETFs into RGESS eligible ETF.
List of RGESS eligible mutual fund schemes
|Existing Schemes – Converted to RGESS eligible||Type||Available on|
|Goldman Sachs S&P CNX Nifty Shariah Index ETF||open-ended – ETF||Units Traded on Exchange|
|Goldman Sachs Banking Index Exchange Traded Scheme||open-ended – ETF||Units Traded on Exchange|
|Goldman Sachs Nifty Exchange Traded Scheme||open-ended – ETF||Units Traded on Exchange|
|Goldman Sachs Nifty Junior Exchange Traded Scheme||open-ended – ETF||Units Traded on Exchange|
|Kotak NIFTY ETF||open-ended – ETF||Units Traded on Exchange|
|Kotak SENSEX ETF||open-ended – ETF||Units Traded on Exchange|
|Quantum Index Fund -Exchange Traded Fund (ETF)||open-ended – ETF||Units Traded on Exchange|
|New Schemes Launched with RGESS eligibility||Type||Open Date||Close Date|
|DSP BlackRock RGESS Fund||close-ended||9-Feb-2013||8-Mar-2013|
|IDBI Rajiv Gandhi Equity Saving Scheme – Series I||close-ended||9-Feb-2013||9-Mar-2013|
|LIC Nomura MF RGESS Series 1||close-ended||9-Feb-2013||25-Feb-2013|
|SBI Sensex ETF||open-ended ETF||9-Feb-2013||8-Mar-2013|
|UTI Rajiv Gandhi Equity Saving Scheme||close-ended||9-Feb-2013||8-Mar-2013|
New retail investors who have never invested in equity markets in the past, can take advantage of professional management and claim additional tax saving benefit by investing in equity markets via RGESS eligible mutual fund schemes. But the dilemma lies in selecting the winning RGESS eligible mutual fund schemes for investing their hard earned money.
List of Eligible Shares / Mutual Funds / ETFs under RGESS
Recommended Read: Important FAQs of Rajiv Gandhi Equity Savings Scheme