The index will serve as an independent and common benchmark
for evaluating the performance of Gold ETFs
Mumbai: Today, CRISIL Research launched
its first index in the commodities space named “CRISIL Gold Index”. CRISIL expects
the index to serve as an independent and common benchmark for evaluating the
performance of Gold ETFs and other investment products with gold as underlying
investment. This index will be freely accessible in the public domain.
Speaking on this occasion, Tarun
Bhatia, Director- Capital Markets said CRISIL Gold Index is an attempt to
address the inconsistency caused by the use of price information from different
sources.
Adding to this Jiju Vidyadharan, Head, Funds and Fixed Income Research said currently fund houses calculate the prices of gold benchmark on their own. Hence, there could be certain inconsistency in terms of premiums which is used as an input for calculation for the price of gold. Jiju said Crisil’s Gold Index construction methodology is in line with the valuation guideline prescribed by SEBI for Gold ETFs. The Crisil Gold index has a base date of 2nd January 2007 and is based on the landed price of 10 grams of gold in Mumbai, he added.
