Mutual Funds
Fund houses rush to launch Rajiv Gandhi Equity Saving Scheme

In January alone, besides HDFC MF, four more players have filed draft documents for starting the scheme with market regulator SEBI

 

New Delhi: Looking to increase the penetration among retail investors, fund houses are rushing to launch Rajiv Gandhi Equity Savings Scheme (RGESS), with six players including HDFC Mutual Fund filing draft papers for it with market regulator Securities and Exchange Board of India (SEBI) in less than two months, reports PTI.

 

RGESS, meant for first timers in the capital market, aims to attract more retail investors by offering tax benefits on their investments.

 

In January alone, besides country’s largest fund house HDFC MF, four more players have filed draft documents for starting the scheme with SEBI.

 

Other players are UTI AMC, LIC Nomura, IDBI Mutual Fund and SBI MF. In December, DSP BlackRock had filed a draft paper for launching the scheme, according to SEBI data.

 

Filing draft papers is mandatory before launching new mutual fund schemes and the regulator usually takes about three-four weeks to clear them.

 

“RGESS is likely to help improve penetration of mutual funds among the retail investors in the country. This scheme will not only create awareness, but it also has the potential to channelise retail money to capital markets in an informed manner,” ICICI Prudential AMC MD and CEO Nimesh Shah said.

 

Market participants believe that the government’s initiative is a positive step and will help in attracting retail investors towards equity markets.

 

RGESS was announced in the 2012-13 Union Budget and is another government initiative to strengthen the country's capital market with increased participation of retail investors.

 

“The scheme is only for the first time investors in the capital market and there is a huge potential in the country,” Quantum Asset Management Company CEO Jimmy Patel said.

 

In order to encourage flow of savings in the financial instruments and improve the depth of the domestic capital market, SEBI last month announced the framework for RGESS.

 

Under the scheme, new investors can avail of tax benefits who invest up to Rs50,000 in the stock market and whose gross total annual income is less than or equal to Rs10 lakh.

 

There would be a lock-in period of one year on investments made under the scheme.

 

At the end of December, the mutual fund industry’s overall assets under management (AUM) stood at Rs7.6 lakh crore while the equity portion contributed Rs1.91 lakh crore.

User

Tata AIA Life launches online term plan “iRaksha Supreme”

“iRaksha Supreme” maximises the life insurance coverage period with wide range of policy terms starting from 10 years and going to as high as 40 years, coupled with the maximum maturity age of 80 years

 

Mumbai:  Tata AIA Life Insurance (Tata AIA Life) has launched an online term insurance plan “iRaksha Supreme” with coverage up to 80 years especially catering to needs of working women, reports PTI.

 

“Studies show that India has a protection gap of over $6.67 trillion (about Rs374 lakh crore). This implies that for every Rs100 that needs to be spent on life insurance cover, we spend Rs7.4, leading to a gap of 92.6% in our family’s financial protection,” Tata AIA Life MD and CEO Suresh Mahalingam said in a release.

 

“With the launch of our first online offering, we provide customers an opportunity to bridge their protection gap,” he said.

 

“iRaksha Supreme” plan maximises the life insurance coverage period with wide range of policy terms starting from 10 years and going to as high as 40 years, coupled with the maximum maturity age of 80 years. It can be purchased by customers even up to 70 years of age.

 

The plan offers preferential rates for non-smoking customers, while women customers will be given better premium rates, bringing more members of the family into the fold of life insurance protection.

 

The plan offers a life cover of Rs1 crore for 20 year term to a 25-year old male (non-smoker) with a minimum cover for Rs50 lakh.

 

It is available for purchase exclusively on the Internet.

 

Tata AIA Life is a joint venture between Tata Sons and AIA Group (AIA), an independent listed pan-Asia life insurance group in the world spanning 15 markets in Asia Pacific.

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COMMENTS

Kapil

3 years ago

Tata AIA online plans are pathetic!!! they don't have any procedures in place.
EGON-Religare and Max Life are much better from Process standpoint. Tata AIA sucks, it took 3 months to them to issue my policy that too after many complaints and escalations. This was the most horrible insurance policy purchase. Pls. buy this at your own risk, as you do not know when you will get answer from TATA AIA after you pay online!

Melvin Joseph

4 years ago

I still could not understand the need of a term assurance till the age of 80.A person should have an insurance cover till he is having financial liabilities.Normally, by age 60, a person retires and his liabilities are almost over, if he had planned well. May be in another 5 years, his children will also be independent.
There can be threat to their life, if a high value policy is there at such an advanced age!

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