Launch of Rajiv Gandhi Equity Saving Scheme 110213

7/28/2019 Launch of Rajiv Gandhi Equity Saving Scheme 110213

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Sponsors: State Bank of India, Punjab National Bank, Bank of Baroda, Life Insurance Corporation of India

Corporate Office: UTI Tower, Gn Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051. Tel: 6678 6666

Website:www.utimf.com

UTI Mutual Fund launches UTI Rajiv Gandhi Equity Saving Scheme

UTI Mutual Fund (UTI) has launched a new close ended scheme UTI Rajiv Gandhi

Equity Saving Scheme. The New scheme has opened for subscription on February 9,

2013 and will close on March 8, 2013.

UTI Rajiv Gandhi Equity Saving Scheme (UTI-RGESS) is a qualified mutual fund scheme

targeting investment under Government notified Rajiv Gandhi Equity Savings Scheme,

2012(RGESS).

The Logo of Rajiv Gandhi Equity Savings Scheme, 2012 was launched by Honble Union

Minister of Finance, Government of India, Mr P Chidambaram in Mumbai on February

9, 2013.

UTI-RGESS is a close-ended passive index fund tracking S&P CNX Nifty Index with a

tenure of 3 years from the date of allotment. The investment objective of the scheme

is to invest in stocks of companies comprising S&P CNX Nifty and endeavour to achieve

return equivalent to Nifty by passive investment. The scheme will be managed by

replicating the index in the same weightage as in the S&P CNX Nifty Index with theintention of minimizing the performance difference between the scheme and the S&P

CNX Nifty Index in capital terms, subject to market liquidity, costs of trading,

management expenses and other factors which may cause tracking error. The scheme

would alter the scrips /weights as and when the same are altered in the S&P CNX Nifty

Index.

Mr. Kaushik Basu, fund manager of the scheme said,The objective of Rajiv Gandhi

Equity Savings Scheme is to encourage the savings of the small investors in domestic

capital market. To facilitate this investment UTI has launched a new close endedscheme called UTI Rajiv Gandhi Equity Saving Scheme. 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


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opportunity for capital growth. The investment amount under the scheme will qualify

for deduction under Section 80CCG of Income Tax Act 1961.

Salient Features of UTI- Rajiv Gandhi Equity Saving Scheme

New Fund Offer Price: During the NFO, the units will be sold at face value ofRs.10/- per unit.

Tenure of the scheme: Three years from the date of allotment Eligible Investors: The deduction under Rajiv Gandhi Equity Savings Scheme, 2012

shall be available to a new retail investor who complies with the conditions of the

scheme and whose gross total income for the financial year in which the investment

is made under the scheme is less than or equal to Rs.10 lakhs.

A new retail investor means the following resident individual:

a)Any resident individual who has not opened a demat account and has not made

any transactions in derivative segment as on the date of notification of the scheme.

b)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, and

c)Any resident individual who is not the first account holder of an existing joint

demat account shall be deemed to have not opened a demat account for the

purpose of this scheme.

In addition to the above the Scheme will also be available for investors who are not

eligible under Rajiv Gandhi Equity Savings Scheme, 2012. The following categories


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of investors can also invest : resident individuals/HUF, institutions as well as to

NRIs and FIIs.

Minimum Application Amount: Minimum Initial investment is Rs.5,000/- and inmultiples of Rs.1/- thereafter under all options/plans.

Plans/ Options Offered: The scheme offers two Plans- Retail Plan and Direct Plan.Both the Plans have Growth and Dividend option with payout.

Asset Allocation:Instruments Indicative

Allocations

(% of total assets)

Risk Profile

Minimu

m

Maximu

m

Equity & Equity Related

instruments of S&P CNX Nifty

95% 100% High

Money Market Instruments* 0% 5% Low

*Investment in the money market instruments will be kept to the minimum so as to be

able to meet the liquidity needs of the scheme. Investment in money marketinstruments with maturity of upto 91 days

Load Structure during the NFO and on maturity:Entry Load: NIL

Exit Load :Not applicable

Redemption/Maturity: Redemption not permitted before maturity. The units ofthe scheme will be listed on the stock exchange after the closure of the NFO.

Investor will be able to enter and exit the fund through transactions in the

secondary market within 15 days of the allotment. The scheme will compulsorily


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without any further act by the investor be redeemed on maturity /final

redemption date.

Benchmark Index: S&P CNX Nifty

About UTI Mutual Fund

UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of

India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India.

UTI Mutual Fund is one of the largest mutual funds in India with investor accounts of

more than 10 million under its 91 domestic schemes / plans as on December 31,

2012.

Mumbai

February 11, 2013

_____________________________________________________________________Registered Office: UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (E), Mumbai

- 400 051. Phone : 022-66786666. For more information please contact the nearest

UTI Financial Centre or your AMFI/NISM certified UTI Mutual Fund Independent

Financial Advisor (IFA) for a copy of Statement of Additional Information, Scheme

Information Document and Key Information Memorandum cum Application Form.

Mutual Fund Investments are subject to market risks, read all scheme related

documents carefully

Launch of Rajiv Gandhi Equity Saving Scheme 110213

Documents

Transcript of Launch of Rajiv Gandhi Equity Saving Scheme 110213