RGESS presentation for investors


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RGESS presentation for investors

  1. 1. DSP BlackRock RGESS* Fund – Series 1(‘DSPBRRGESSF’ or ‘Fund’)A close ended equity scheme investing in eligible securities as per *Rajiv GandhiEquity Savings Scheme, 2012NFO Period: Feb 14, 2013 to Feb 28, 2013
  2. 2. Table of contents Sr No. Particulars Page No. 1 What is Rajiv Gandhi Equity Savings Scheme 3 2 What is DSPBRRGESSF 4 3 Why Invest in this Product now 5 4 What are some other benefits of Investing in DSPBRRGESSF 6 5 Why Invest with DSP BlackRock 7 6 Who can apply 8 7 DSPBRRGESSF Features 9 8 Disclaimer 10 2
  3. 3. What is Rajiv Gandhi Equity Savings Scheme? • Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS) is a scheme notified by the Government of India to encourage flow of savings of small investors into the equity capital market. • Under RGESS, new retail investors in equities, with gross total income less than or equal to Rs. 10 lakhs, could claim deduction of 50% for investments up to Rs. 50,000 in RGESS eligible securities. • Investors also have to comply with certain other requirements to be eligible for this benefit. Note: Please refer to the RGESS, 2012 notified by the Central Government on November 23, 2012 and SEBI Circular number CIR/ MRD/DP/32/2012 dated December 06, 2012 for additional details or consult your financial advisor to learn more. 3
  4. 4. What is DSPBRRGESSF?DSP BlackRock RGESS Fund – Series 1 (DSPBRRGESSF) is a 3 year close-ended equity fund that would invest inRGESS eligible securities. Units of DSPBRRGESSF have been recognised as eligible securities for investors seekingtax benefits under RGESS. • Equity shares of companies which are included in either CNX- 100 or BSE-100 or equities of public sector enterprises which are categorized as Maharatna, Navratna or Miniratna by the Central Government • IPOs of eligible public sector undertakings • Follow on public offer of BSE-100 or CNX-100 and public sector enterprises which are categorized as Maharatna, Navratna or 95%-100% Indian Miniratna. Investors • Initial Public Offer of a public sector undertaking wherein the government shareholding is at least 51%, which is scheduled for getting listed in the relevant previous year and whose annual turnover is not less than Rs. 4,000 crore during each of the preceding 3 years • The Fund would also invest a certain portion of its corpus in cash and cash equivalent and money market instruments from time to 0%-5% time, primarily for portfolio balancing reasons.*Investing in eligible securities as per *Rajiv Gandhi Equity Savings Scheme, 2012 4
  5. 5. Why Invest in this Product now^ ?• Get access to stocks of companies which are amongst the largest in the country today, through a mutual fund, and that too at a time when:  Equity markets are trading at around 14.2x FY14 earnings, which is below the long term (15-year) average P/E multiple of around 15.5x (Source: BOA-ML)  Corporate earnings growth currently expected at 10-11% for FY13 could improve to around 15% next year (FY14) and thereafter to around 18-20%, once private sector investment spending picks up momentum in FY 15 & FY 16 - this would augur well for equity markets over the next 3 years.  The Government has started taking various measures in recent months to boost the economic growth of the country, which will start yielding results over the next few years.  Foreign investors have invested record levels in Indian equities, with net Foreign Institutional Flows (FII) in 2012 touching nearly US$ 25 billion.• Additional Tax Benefits: New retail investors with gross total income less than or equal to Rs. 10 lakh can claim tax deduction of:  50% for investments up to Rs. 50,000 under section 80 CCG of the Income Tax Act (‘Act’).This is over and above the tax exemption under Section 80C of the Act. ^Source: Internal 5
  6. 6. What are some other benefits of Investing in DSPBRRGESSF? Diversification No lock-in restrictions on underlying portfolioFor first time retail investors, it is better toinvest in a carefully constructed portfolio of There are fixed and flexible lock-insecurities rather than taking exposure restrictions placed on investments underthrough a single stock or a basket of few RGESS, which could restrict active portfoliostocks. This also helps investors to manage management by the investor. However, bythe downside risk. investing in DSPBRRGESSF, an investor benefits from an underlying portfolio without these restrictions, and therefore from a fund that would be actively managed. Active Management Compared to investing in a passive product like an exchange traded fund (ETF), investors in DSPBRRGESSF benefit from the superior stock selection and portfolio management skills of the investment team at DSP BlackRock. *Investing in eligible securities as per *Rajiv Gandhi Equity Savings Scheme, 2012 6
  7. 7. Why Invest with DSP BlackRock?• One of the leading asset management companies in India - a joint venture between the DSP Group and BlackRock. The DSP Group, headed by Mr. Hemendra Kothari, is one of the oldest financial services firms in India with a track record of over 145 years and was one of the founding members of the Bombay Stock Exchange.• Long track record of over 16 years in managing equity mutual funds, across sectors, themes and market cap segments, in India.• Expertise of a well respected and stable investment team supported by able research analysts, benefiting from access to more than 700 investment professionals worldwide. This team manages some of the largest equity funds in the market today and concentrates on rigorous fundamental and quantitative active management approaches aimed at maximizing out-performance.• Independent Risk & Quantitative Analysis team to ensure an unbiased risk management process and strict regulatory compliance• Constant endeavor towards investment excellence within the framework of transparent but rigorous risk controls.• Strong commitment to service resulting in dynamic investor relationships across a wide range of products. 7
  8. 8. Who can apply?DSPBRRGESSF is available for investments to any investor looking to invest in equity securities for the longterm.Tax Benefits will be available only to “New Retail Investors”. These include the following resident individuals:1. Any individual who has not opened a demat account and has not made any transactions in the derivative segment as on the date of notification of the RGESS;2. Any individual who has opened a demat account before the notification of the RGESS but has not made any transactions in the equity segment or the derivative segment till the date of notification of the RGESS, and any individual who is not the first account holder of an existing joint demat account shall be deemed to have not opened a demat account for the purposes of this Scheme;3. Any individual whose Gross total income for the Financial Year in which the investment is being made is less than or equal to10 lakh. 8
  9. 9. DSPBRRGESSF Features Benchmark BSE 100 Index Minimum investment Rs. 5,000/- and multiples of Rs.1/- thereafter Plans Regular Plan | Direct Plan Options Available Growth (Option A) | Dividend Payout (Option B) Loads Entry Load – Nil | Exit Load – Not Applicable (The Units under the Scheme cannot be directly redeemed with the Mutual Fund as the Units will be listed on the Stock Exchange/s.) Fund Managers Apoorva Shah & Dhawal Dalal 9
  10. 10. Disclaimer Risk Factors: For detailed Scheme specific risk factors such as risk associated with equity investments & RGESS-eligible securities, Market Liquidity Risk, Liquidity Risk on account of unquoted and unlisted money market securities, Credit Risk & Market Risk, Term Structure of Interest Rates Risk, Re-investment Risk, Risks associated with transaction in units through stock exchange mechanism, Factors associated with Close-ended Schemes, Risks associated with stock lending, please refer the relevant Scheme Information Document (SID). Conditions for availing tax benefits: To avail tax benefit under RGESS, the investor should fulfill certain conditions like meeting the criteria of New Retail Investors, holding the units of the DSPBRRGESS in demat form and applicable lock in period as specified under RGESS. Investors are requested to read the SID, Statement of Additional Information and Key Information Memorandum carefully before investing. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 10