Highlights:
- Pure and Secure: Each unit of IDBI Gold ETF will be backed by gold of 99.5% purity to be held by a custodian.
- Affordable: Ideal for small retail investors.
- Minimum investment: Rs. 10000 and in multiples of Re. 1 thereafter.
- High Liquidity: Listing at NSE &BSE. Post listing, IDBI Gold ETF units can be easily bought / sold on the stock exchange during market hours at real-time prices.
- Tax efficient: No wealth Tax. Long Term Capital Gains tax applicable after one year from the date of investment
- Mode of holding: D- Mat account
IDBI Mutual Fund announces the launch of IDBI Gold ETF, an open ended Gold Exchange Traded Fund.
The New Fund Offer (NFO) will open for subscription on October 19, 2011 and close on November 2, 2011. The date of allotment of units under the Fund would be November 10, 2011. The minimum application amount during NFO will be Rs 10000 and in multiples of Re 1 thereafter for all investors directly with the Mutual Fund.
The Fund will invest in physical gold and track gold prices. The benchmark for the fund would be domestic price of gold. The investment objective of the Fund is to replicate the performance of gold. It will seek to achieve the investment objective by minimizing the tracking error.
Speaking on the occasion, Shri 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”.
Shri Debasish Mallick, MD & Chief Executive Officer, IDBI Asset Management Ltd said “Gold Exchange Traded Funds (ETFs) track the price of physical gold in the domestic market and 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.”