Golden opportunity for Indian Professionals to enter stock markets and save taxes -Rajiv Gandhi Equity Savings Scheme (RGESS)



The new Rajiv Gandhi Equity Savings Scheme (RGESS) is a good scheme which can be availed by Indian professionals, who intend enter in to world of stocks and invest in them. 

This scheme also comes with a unique tax benefit for for attracting salaried  people to it.

Government of India has launched this unique program in 2012, with an aim to attract new retail investors to the stock market.

Read on for all you wanted to know about RGESS.

What is RGSSS?

Rajiv Gandhi Equity Savings Scheme (RGESS) is the first  investment program designed for Indian people, who can save income tax when they make stock investments. This scheme is  available only for the first time investors whose yearly income is less than rupees 10 lakhs.

How much you can invest?

A maximum of Rupees 50,000 can be invested under the RGESS.

How much tax exemption can be availed?

50% of the the amount of the investment can be availed for tax exemption under section 80CCG. i.e .If we invest rupees 50000 in RGESS , 25000 can be reduced from the total yearly income. The maximum savings in this scheme is Rs. 5000 for the investors in the 20% tax bracket and Rs. 2500 for those in the 10% tax bracket.

Please note this exemption is over and above the section 80c  benefit which you currently have.

When you can withdraw money?

There is a minimum lock-in period of 3 years for the investors to withdraw the initial investment amount of this scheme. But if there is appreciation in the value of the of shares , you may sell shares corresponding to the appreciated value after 1 year period.

In which of the stocks you can invest?

You can invest  in BSE 100 and CNX 100 stocks, Maharatna, Navratna and Miniratna PSUs, and initial public offerings of some public sector companies qualify as RGESS investments.. You may also invest in mutual funds which invest on the above said stocks or in selected ETFs.

How can you invest?

You need pan card, bank account and a DEMAT account to join in this scheme. For starting an DEMAT account  and to begin the scheme you have to contact stock broking companies, Mutual fund companies and banks.

Last year mutual fund companies like HDFC, LIC Nomura, DSP Blackrock, Birla Sun Life, IDBI, and UTI had launched special RGESS schemes.


22 best quotes on finance and life by Warren Buffet for young professionals.


    Warren  Buffet,  undoubtedly is the most successful investor of our times.  He is also one of the wealthiest persons in the world now. He has amassed his massive wealth thru wise investment in stock market and from the values of shares in his own companies.

His principled  way of business simple capable knowledge of market  , high level of personal discipline and  ethical business standards. His strategy of investing stocks is popularly called as ‘value investing’.

Warren Buffet lives a simple life despite his wealth and gives much of his wealth to charitable works.

Warren buffet is one of the most quoted man today in the world of fiancé and investments today.

His practical wisdom on money, stock market, investments and life in general is invaluable. Learning about the life and wisdom of Warren Buffet can help young professionals to become better investors and wonderful human beings.

Here are some of Warren Buffet’s invaluable quotes about life, stock markets, investing, money etc., which I am sure will be inspirational to many young professionals who are just beginning their life.


17 best personal financial management quotes for young professionals


Young professionals in general are a puzzled lot, when they are to deal with money and its management.

Financial decisions based  on proven principles from lives of great individuals can radically change our  financial situation and help us to achieve financial freedom sooner or later.

moneyjumps.com today like to share with you the golden quotes of some great people of the world on money , personal finance, savings, investment and wealth, which we are sure, if practiced in real life can give marvelous results.

Read on, think on each quote, understand the principle and implement in your life and see how it works! 


Why stocks are the best long term investment for young Proffessionals?

Young professionals are having lot of apprehensions about  investing in stocks. Let us see why investing in stocks can be the best thing that young professionals can do for their future.

Stocks are the best long term investment vehicles worldwide for a long time now.
Stocks of successful organizations has helped millions of people to make good fortune within a reasonable period.
Many of the world’s  richest people are there because of the value of the stocks they own in their respective companies.
For example,Bill Gates is the richest man in the world is because of the value of the stocks in his company- Microsoft.
Same is the case with Warren Buffet of Berkshire Hathaway and  Laxmi Mittal of Mittal Steel whom are 2nd and 3rd richest people in Forbes list.
As you know,  stocks are issued in the form of shares to represent the  ownership of companies. And the stock markets are where we buy and sell stocks.
In the stock markets investors like you and me can trade shares of companies thru intermediaries called stock brokers.
The returns from the stocks are from 2 ways.
    1. Appreciation from share capital  – When the market value of stocks appreciates share capital increases.
    2. Dividends- Dividends are the share of profit which company gives to all share holders for a financial period.
Now let us see why stocks are best long term investments?