This scheme will come under tax benefits under Section 80 CCG. This is a scheme which give tax benefit for new investors who invest up to Rs 50,000 and whose annual income is below Rs 10 lakh.
The New Fund Offer (NFO) will open for subscription on February 9, 2013 and close on February 25, 2013.
However, the scheme will not be open for subscription on an ongoing basis.
The investment objective of the Schemes is to seek to generate capital appreciation, from a portfolio that is substantially constituted of equity securities which are specified as eligible securities for Rajiv Gandhi Equity Savings Scheme (RGESS). The Scheme may also invest a certain portion of its corpus in cash & cash equivalent and money market instruments from time to time.
Know more about RGESS
Under the RGESS, the maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year.
Dividend payments under the scheme are tax free. Lock in period is 3 years, in case you wish to get a tax deduction over & above Section 80C.