BWI: Retail Investor is the Real Winner with Rajiv Gandhi Equity Scheme, says MoneyWorks4Me.com

Press release from Business Wire India
Source: MoneyWorks4me.com
Tuesday, April 03, 2012 02:55 PM IST (09:25 AM GMT)
Editors: General: Consumer interest, Economy, People; Business: Business services, Financial Analyst, Major diversified industrial groups, Stock exchanges
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Retail Investor is the Real Winner with Rajiv Gandhi Equity Scheme, says MoneyWorks4Me.com


Pune, Maharashtra, India, Tuesday, April 03, 2012 -- (Business Wire India) -- The Union Budget 2011-12 turned out to be a dampener in many ways - there were no major policy announcements to control fiscal deficit, nor was there any effort to achieve important economic objectives like domestic demand creation and growth in private investments.

However, hiding behind the non-events and austerity measures, came a sweet surprise for the retail investors. It is the Rajiv Gandhi Equity Savings Scheme (RGESS), a new tax exemption plan announced by the Finance Minister. "It is a unique opportunity that the Government has given the retail investor, to help him cash in on the India growth story. It will enable retain investors to invest in the burgeoning stock market and also save on tax while doing so! "says Raymond Moses,
Co-founder of MoneyWorks4me.com.

MoneyWorks4me.com is India's first stocks-only portal that takes the gamble out of Stock Investing. It helps retail investors invest in stocks safely and successfully, with unbelievable ease. Because, here every stock comes with a colour code that indicates if the stock is Great Good or Risky and an MRP i.e. the real worth of the stock.

And here's what the RGESS is about - if you are a new equity investor with an annual income of up to Rs.10 lakhs, you can invest up to Rs.50,000 directly in equities and avail income tax exemption on 50% of amount invested . Thus, you stand to save up to Rs.5,000 on your income tax. In short, the Finance Minister has offered a time-tested investment opportunity on a platter; and is giving the investors, a discount to try it out!

The primary motive behind this scheme is very clear. There is an overwhelming need for Indian investors to invest directly in stocks, because it is the equity class that out performs any other class in multiplying one's investment and creating wealth! Raymond Moses further says, "To beat inflation, it is very important to invest a portion of our savings in equities; and the Rajiv Gandhi Equity Savings Scheme will give the necessary push that the people need to invest in stocks."

The second motive behind this scheme is to increase the number of direct retail investors in the stock market. Currently, the number of retail investors in equity is surprisingly poor at about 2% of the working population, according to some sources. Hence the market is often left at the mercy of FIIs and institutional investors who drive our domestic markets up or down. But this bleak scenario can change with the introduction of RGESS. With a potential 1.5 million investors entering the market, with investments of Rs.50,000 per person, we are now looking at an inflow Rs.50,000 - 75,000 crores; that's a huge inflow of stable money into the market, unlike the volatile money of the FIIs. This in turn will make the stock market more stable and less irrational, thereby making it a safer place!

The three year lock-in period is a boon in itself too. Once the investors have analysed companies and invested in them, they will have to lock-in their investments for three years. And it is this action, or lack of it, that will insulate them from reacting to fluctuations in stock prices and help them get substantial returns from stocks over the long term.

Stock Investing is not rocket-science as it is made out to be. By investing in fundamentally sound stocks at the right prices, investors can preserve the safety of their capital safe and also get a big bounty at the end of the three year period! The powerful framework at MoneyWorks4me helps investors to find out the Right Company, it's Right Price and know if it is the Right Timing to invest in.

All that investors need to do is invest in fundamentally sound companies when their stocks are available at attractive valuations; and then sit back and watch as the stock price grows along with the business of the company. To find out if any stock is Great, Good or Risky to invest in, you can Register FREE at MoneyWorks4me.com, and find it out in seconds using the stock's 10 YEAR X-RAY.

So to sum up, good opportunity, tax exemption and a bigger nest egg! Thus among the sombre measures in this year's Budget, the RGESS truly is a sweet surprise for the retail investors!

About MoneyWorks4me.com
Moneyworks4me.com is India's first 'Stocks only' portal that takes the gamble out of stock investing. It is the only place where every stock comes with a colour code and an MRP. Our mission is to create a large community of prosperous investors who would benefit from India's growth story by investing in stocks-The Safest Way-with unbelievable ease.



CONTACT DETAILS
Payal Mathur,Manager - Marketing Communications, MoneyWorks4me.com, +91 (20) 67210600, payal.mathur@moneyworks4me.com

KEYWORDS
CONSUMER, ECONOMY, PEOPLE, BUSINESS SERVICES, Financial Analyst, GROUPS, STOCK EXCHANGES

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