Mumbai: Reliance Mutual Fund has launched a first of its kind gold savings fund which allows investors to invest as little as Rs 100 through SIP without having to open a demat account.
NFO Date: February 14 to February 28; Scheme re-opens on March 14
Investment Mandate: It is a passively managed fund of fund which will invest solely in the open ended Reliance Gold ETF. Reliance Gold ETF invests in physical gold. The fund aims to provide returns that closely correspond to the Reliance Gold ETF.
Target Investors: “This fund would be suitable for most of the investors, if not for all of them. We suggest investors to have about 10 per cent of their overall allocation to gold funds. Systematic exposure could also be taken by the investors to fulfill their long term needs through gold accumulation. By doing so, investors may be able to generate returns to buy physical gold to meet their future goals” says Sundeep Sikka, CEO, Reliance Mutual Fund.
Distribution: “The fund will be available for investors pan India through our channel partners and RCAM centres. In order to create awareness and marketing pull for the product, we are running a multimedia campaign during the NFO period,” adds Sundeep.
Benchmark: The price of physical gold.
Minimum Application: Rs 5,000 and additional purchase of Rs 1,000
Minimum Investment through SIP:
1) Rs 100 per month and in multiples of Re. 1/- thereafter for minimum 60 months
2) Rs.500/- per month and in multiples of Re. 1/- thereafter for minimum 12 months
3) Rs.1000/- per month and in multiples of Re. 1/- thereafter for minimum 6 months
4) Rs.500/- per quarter and in multiples of Re. 1/- thereafter for minimum 12 quarters
5) Rs.1500/- per quarter and in multiples of Re. 1/- thereafter for minimum 4 quarters
Scheme Expense: 0.75%
Fund Manager: Hiren Chandaria
Exit load- Two percent if redeemed before one year. Systematic Transfer Plan/ Systematic Withdrawal Plan / auto switch /trigger facility etc is also available.
Existing Gold ETFs: There are 11 Gold ETFs in the market currently having average tracking error of 0.43 per cent during a one year period. These schemes are managing a total corpus of Rs 3,255.39 crore.