The investment objective of the scheme is to seek capital appreciation by investing in units of gold ETFs. It offers both regular and growth plans, with the option being growth only. The exit fee will be zero and the scheme will be benchmarked against the domestic price of physical gold. It will be managed by Shyam Agarwal and Kedarnath Mirajkar.
The minimum investment amount will be Rs 500, with subsequent investments in multiples of Rs 1. The minimum application amount for SIP across all frequencies will also be Rs 500. During the ongoing offer period, for subsequent additional purchases, investors can invest a minimum of Rs 500, with further investments in multiples of Rs 1.The scheme will allocate between 95% and 100% to gold ETF units and between 0% and 5% to debt securities and money market instruments. The investment strategy will involve passive investment in gold ETFs, remaining invested in the underlying scheme irrespective of the prevailing gold prices or future prospects for this asset class.
This fund will be suitable for investors looking to generate long-term capital appreciation through investments in units of gold ETFs, which in turn invest in physical gold.
Capital invested in the plan will be classified as “high” risk according to the plan’s risk meter.
In addition, the fund manager has recently filed a draft document with SEBI for an overnight hedge fund. This scheme will be an open-ended debt fund that will invest in overnight hedge securities, characterised by relatively low interest rate risk and low credit risk.
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