The launch of Religare Mutual Fund's Gold exchange Traded Fund (ETF) has expanded the segment's universe. Till now, there were six gold ETFs - the oldest being Gold Benchmark ETF, which was launched way back in February 2007.
The Religare Gold ETF fund will invest up to 100 per cent in physical gold in the domestic markets while it would also invest up to 10 per cent in debt or money market instruments.
The performance of the scheme would be benchmarked against the price of gold.
The fund would be managed by commerce graduate and an MBA in finance, Gautam Kaul. He has more than eight years of experience in fixed income markets. Prior to joining Religare AMC, he was working in Sahara India AMC (2005- 2006) and Mata Securities (India).
The New Fund Offer (NFO) opens on January 28, 2010 while it closes on February 23, 2010.
The minimum application amount during NFO period for retail investors is Rs 5,000, while for large investors, it is Rs 15 lakh per application.
There is no exit load.
Other Gold ETFs in the market:
1. Gold Benchmark ETF
2. Kotak Gold ETF
3. Quantum Gold
4. Reliance Gold ETF
5. SBI Gold ETS
6. UTI Gold ETF.
