ended gold exchange traded fund. The new fund offer (NFO) will open for subscription on October 19 and will close on November two.
The date of allotment of units under the Fund would be November 10. The minimum application amount during NFO will be Rs 10,000 and in multiples of Re one, 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.
Talking to reporters here, RM Malla, Chairman and MD of IDBI Bank Ltd and Chairman of 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."
Debasish Mallick MD and CEO, 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."
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