Reliance MF launches Gold ETF

Reliance Anil Dhirubhai Ambani (R-ADAG) group firm Reliance Mutual Fund today launched Gold ETF (exchange traded fund), designed to provide returns that closely correspond to returns provided by domestic prices of gold.

Gold ETF is a security listed on the stock exchange, through which investors can participate in the gold bullion market without the compulsion to take the physical delivery of gold.

The new fund offer (NFO) opened for subscription today and will close on November 1. During the NFO period, an investor can invest with a minimum application amount of Rs 5000 and in multiples of Re 1 thereafter.  All gold bullion held in the scheme's allocated account with the custodian shall be of purity 995 parts per 1000 (99.5%) or higher, the company said in a release.

Gold ETFs as a category has given returns of 7% during last one month owing to spiralling gold prices. As of today, Benchmark, UTI and Kotal Mutual Fund have gold ETFs.