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