This new product offers multiple benefits to the investors seeking to diversify their portfolio through investment in gold. In the last few years, there has been increased trend of investing in gold ETF as part of broader asset allocation to various asset classes.`
The scheme will add stability to investor`s portfolio as gold has historically been a hedge against inflation through appreciation in value.
The investment objective of the fund is to generate returns that are in line with the performance of gold. The scheme has transparent pricing and charges no wealth tax as compared to investment in physical gold. The fund route is ideal for accumulation as minimum lot size to trade is one unit of Gold ETF, which is approximately equal to one gram of Gold.
The minimum application amount is Rs 6,000 and in multiples of Rs 2,000 thereafter per application. The units of the scheme will be traded in dematerialized form and will charge no entry or exit load. The scheme is open to all categories of investors and provides for quick and convenient dealing through Demat accounts. The fund invests in gold with 99.5% purity sourced from London Bullion Market approved refineries.
The units of the scheme will be listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) and can be purchased and sold through the stock exchange on any trading day. Investors shall also have the option to convert to physical gold provided by certain vendors.