Mutual funds sport 'RGESS' tag to tap tax-saving season flows

NEW DELHI: With an aim to tap the year-end rush for investment products offering tax benefits, the asset management companies are lining up numerous mutual funds eligible for the newly created Rajiv Gandhi Equity Savings Scheme ( RGESS).

While half a dozen fund houses have filed papers with market regulator Sebi for new RGESS products, AMCs like Kotak, Quantum, Goldman Sachs, Motilal Oswal and Religare have also informed the market intermediaries about certain existing schemes that would be eligible for RGESS benefits.

According to experts, the move to declare existing schemes as 'RGESS-eligible' will help fund houses avoid expenses related to new fund launch, attract investors who prefer track record and tap tax-saving season inflows.

Usually, this period ending March 31 sees tax-saving or ELSS funds garnering chunky inflows.