Deutsche Mutual Fund has filed an offer document with market regulator the Securities and Exchange Board of India (SEBI) for the launch of its DWS Gold Advantage Fund.
If the fund, which is an open ended debt fund, sees the light of day, then it would be the first of its kind fund in this fund house’s family.
The fund expects to generate income by investing in a fixed income securities and capital growth by investing in gold related securities.
The fund may invest up to 100 per cent in money market instruments and cash while it would invest up to 35 per cent in Gold ETFs.
The fund would be benchmarked against Gold Index (35 per cent) and Bond Index (65 per cent).
The fund offers both growth and dividend options.
The fund would be managed by Avnish Jain who has over 15 years of experience in financial markets. He holds a B.Tech (Homs) IIT, Kharagpur and PGDM – IIM, Kolkata. He is also the fund manager of DWS Gilt Fund and DWS Fixed Term Fund - Series 68.
The minimum application amount would be Rs 5,000.
One per cent exit load would be applicable if redeemed within one year.
Redemption of units will be allowed at a minimum of Rs 1,000 per application and in multiples of Re 1 thereafter.
Systematic Investment Plan and systematic transfer plan (STP) would be available during NFO and on an ongoing basis.
However, the minimum application amount for investments through SIPs is Rs. 12,000 divided into 12 cheques of Rs. 1000 each for 12 months or 6 cheques of Rs. 2,000 each for 6 months OR 4 cheques of Rs. 3,000 each for 3 months.
Systematic withdrawal plan (SWP) will be available on ongoing basis.
Minimum Application Amount for Investments Through SWPs is at Rs 12,000 divided into 12 installments of Rs 1,000 each for 12 months or 6 installments of Rs 2,000 each for 6 months or 4 installments of Rs. 3,000 each for every 3 months.
Investments by NRIs/ FIIs are allowed on a full repatriation basis subject to RBI approvals, if any.