The NFO opens on 25 July and closes on 8th August
IDBI Mutual Fund today announced the launch of its open ended IDBI Gold Fund. This fund will invest predominantly in IDBI Gold ETF. The fund house is aiming to collect a corpus of Rs 100 crore from the new fund offer. IDBI Gold ETF launched in November 2011 had collected Rs 108 in its NFO.
The investment objective of the scheme is to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI Gold ETF). The fund will be benchmarked against the domestic price of gold.
There are currently nine gold fund of funds in the market. Gold fund of fund route has been ideal for fund houses to attract retail investors who do not possess demat accounts. Gold ETFs have delivered an average of 9% return in the last nine months.
“IDBI MF has been emphasizing on the need for prudent asset allocation between various asset classes, viz; equity, debt and gold, for long-term wealth creation. IDBI Gold Fund, through its in-built facility of SIP and no requirement of a demat account, would enable larger number of investors to participate and enjoy the benefits of holding gold,” said Debasish Mallick, MD & Chief Executive Officer, IDBI MF.
The minimum investment in lump sum is Rs.5000 and Rs.500 per month via SIPs. The scheme offers STP and SWP as well. The NFO opens on 25th July and closes on 8th August. The scheme will re-open for continuous sale and repurchase from August 23, 2012
The fund house managed Rs 4674 crore as on June 2012. IDBI launched its first actively managed equity fund called IDBI India Top 100 Equity Fund in May.
