The new issue will be open for subscription from October 20 to November 3
AXIS Mutual Fund has launched Axis Gold ETF, an open-ended gold exchange traded fund. During the new fund offer (NFO), each unit of the scheme will be issued at face value of Rs100 plus premium equivalent to the difference between the allotment rice & the face value of Rs 100.
The investment objective of the scheme is to generate returns that are in line with the performance of gold. The scheme will allocate 95-100 per cent of assets in gold with medium risk profile. The fund has the provision to allocate up to 5 per cent of its assets in money market instruments with low to medium risk profile. Cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure. The fund seeks to collect a minimum subscription of of Rs 1 crore under the scheme during the NFO period.
The entry and exit load charge will be nil for the scheme. The schemes performance will be benchmarked against the domestic price of gold. The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
The new issue will be open for subscription from October 20 to November 3 after which it will reopen on or before November 16.
