HDFC Mutual Fund launches HDFC Rajiv Gandhi Equity Savings Scheme-Series 2

MUMBAI: HDFC Mutual Fund today said it has launched HDFC Rajiv Gandhi Equity Savings Scheme-Series 2 (HDFC RGESS-2), a three year close-ended equity scheme. The new fund offer, which has opened for subscription from January 30, will close on February 24, 2014, the company said.

"The scheme shall predominantly invest in the eligible securities of RGESS (minimum 95 per cent) and invest in cash and cash equivalents and money market instruments and liquid schemes (maximum 5 per cent), only to the extent necessary to meet the liquidity requirements for honouring redemptions," it said in a release.

As per the fund house, investment in HDFC RGESS-2 is eligible for 50 per cent tax deduction of the invested amount under the Income Tax Act for new retail investors investing upto Rs 50,000 and having gross total income less than or equal to Rs 12 lakh.