The fund house will file offer document with SEBI to launch a gold fund which will invest in its Axis Gold ETF
Mumbai: Axis Mutual Fund which recently filed offer documents with SEBI to launch four ETFs is looking to seek permission from regulator to launch a gold fund of fund. It will soon file an offer document with SEBI to launch a gold fund of fund, according to a person familiar with the development.
Axis Gold Fund will invest in its Axis Gold ETF which was launched in November 2010.
Ever since Reliance launched Reliance Gold Savings Fund earlier this year, there has been a rush to launch gold funds. Until now investing in gold ETFs was only possible if investors had a demat account. Now, gold fund of funds allow the ease of systematic or lump sum investment in gold ETFs similar to any other equity fund without a demat account.
Recently fund houses like Quantum and Kotak launched gold fund of funds. HDFC has also filed offer document with SEBI to launch a HDFC Gold Fund which will invest in its HDFC Gold ETF launched in July 2010.
With the launch of these gold funds, AMCs are expecting to tap retail investors who prefer the systematic investment approach. Gold ETFs collected Rs 121 crore in the month of April 2011. From January 2010 till April 2011, gold ETFs have collected a sum of Rs 919 crore. Gold ETF folios stood at 3,29,149 as on April 2011 compared to 1,47,047 folios in March 2010.
