Mumbai: IDBI Mutual Fund launched its open ended IDBI Gold ETF. The Fund will invest in physical gold and track the price of physical gold price.
Investment Objective: The fund aims to replicate the performance of gold by minimizing tracking error.
NFO Date: October 19 - November 02.
Unit allotment date: November 10.
Minimum application: Rs. 10,000.
Benchmark: Domestic gold price
Listing: NSE &BSE.
Tax: No wealth tax. Long term capital gains tax applicable after one year from the date of investment.
Current gold ETFs: 12
Gold ETF AUM: Rs. 8,173 crore (As on September 2011)
Gold ETF Category Returns: 32% (Absolute 1 year return)
R M Malla, Chairman & Managing Director, IDBI Bank Ltd and Chairman, IDBI Asset Management Ltd. said, “We, at IDBI Mutual Fund see investment in gold as a component of prudent diversification to hedge against uncertainties, inflation and for long term benefits”.
Debasish Mallick, MD & Chief Executive Officer, IDBI AMC believes gold should be an essential part of any portfolio. “Gold ETFs are very transparent and liquid investment products. IDBI Gold ETF units are proposed to be listed on NSE and BSE to impart liquidity. Reputed bullion dealers have been appointed as market makers to provide buy-sell quotes in the markets on a regular basis. IDBI MF will also offer direct buy-sell options at NAV related prices for investments of 1000 units and above. Gold has generated consistent returns over times. It is a “must-have” asset in any portfolio.”
