HDFC Mutual Fund launched HDFC Gold Fund on 07th October, 2011. This is a Fund of Fund which invests in HDFC Gold Exchange Traded Fund. The investment objective of the HDFC Gold Fund is getting capital appreciation through the investment in HDFC Gold Exchange Traded Fund (HGETF). At present the Mutual fund offer only growth option.
Opening and Closing Date of NFO
The HDFC Gold Fund is already launched in the market form 07th October, 2011 and the new fund offer will be closed on 21st October, 2011 and the offer price of each unit in NFO period is Rs. 10.
Minimum and Maximum Investment
The Minimum required investment in HDFC Gold Fund is Rs. 5000 and the multiples of any amount thereafter at NFO period. After NFO period the minimum investment is Rs. 5000 and multiples of Rs. 1000 thereafter.
But for Systematic Investment Plan (SIP) in NFO period and after NFO period, the minimum monthly investment is Rs. 500 and for Quarterly SIP, the minimum quarterly investment is Rs. 1500 and multiples or Rs. 100 thereafter for both cases.
Lock in Period
As it is an open ended fund the HDFC Gold Fund has no any lock in period. The investor can redeem it or switch over in any time after allotment with 2% exit load for the fund before 6months of allotment and 1% exit load before completing one year of allotment, but after 6 months.
Investment Portfolio of HDFC Gold Fund
95% to 100% of the pooled money of HDFC Gold Fund will be invested in HDFC Gold Exchange Traded Fund which has Medium to High risk profile and 0% to 5% will be invested in Reverse repo and /or CBLO and / or money market instruments and/or Schemes which invest predominantly in the money market securities or Liquid Schemes with low risk profile.
At present the world stock market shows a volatile trend and investment in Gold is appreciating up to certain extend. Gold Funds and Gold Traded Funds make convenient the investment in Gold. So we recommend a part of (say 10%) your investment portfolio may be in Gold.