Friday, 21 October 2011

IDBI Gold Exchange Traded Fund from IDBI

IDBI Gold Exchange Traded Fund launched by IDBI Mutual Fund on 19th September, 2011. The Gold ETF is an open ended Fund which invest physical gold.

Investment objective of the fund is to invest in physical Gold with the aim to replicate the performance of Gold in domestic prices. The IDBI Gold ETF will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error. The ETF aims retail investors.

NFO period-New Fund Offer (NFO) opened on 19th September, 2011 and the NFO period will be over on 2nd November, 2011.

Issue Price of IDBI Gold Fund. The unit price of ETF gold fund is Rs. 100 at NFO and the minimum required investment in the gold etf is Rs. 10000 and multiples of Re. 1 thereafter.

Allotment of Gold Fund. The allotment of the gold fund is on 2nd November, 2011 to the applicants.

First Gold Fund of IDBI. This is the first gold fund from IDBI Group and will invest in physical gold and the bench mark of the fund will be domestic price of gold.

How to buy and sell the gold etf. You can buy and sell IDBI Gold Exchange Traded Fund units with most of the branches of IDBI Bank. The Gold fund can use as a collateral security for getting loan from IDBI Banks and also can exchange with gold jewelry from some jewelers in India.

Entry load and Exit load. There is no entry load or exit load for the IDBI Gold Exchange Traded Fund and it is an open ended fund which can buy or sell any time after NFO period.

Conclusion. Gold exchange traded fund is a safe method to invest in gold and can fetch the real value of gold without taking risk of keeping pure gold and at present the stock exchanges show high volatility and investment in gold is a good method of investing.

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