IDBI Gold ETF which is an open ended Gold Exchange Traded Fund has been launched by IDBI Mutual Fund and the subscription is open wef October 19, 2011 and close on November 2, 2011. The date of allotment of units under the Fund would be November 10, 2011. The minimum application amount during NFO will be Rs 10000 and in multiples of Re 1 thereafter for all investors directly with the Mutual Fund. 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.
Key Features of IDBI Gold ETF:
- Pure and Secure: Each unit of IDBI Gold ETF will be backed by gold of 99.5% purity to be held by a custodian.
- Affordable: Ideal for small retail investors.
- Minimum investment is 10000 and thereafter in multiples of Re. 1.
- High Liquidity: Listing at NSE &BSE. Post listing, IDBI Gold ETF units can be easily bought / sold on the stock exchange during market hours at real-time prices.
- Tax efficient: No wealth Tax. Long Term Capital Gains tax applicable after one year from the date of investment.
- Mode of holding: D- Mat account
You can check out daily gold price in India here and can click on below related posts to know about gold updates. No doubt gold ETF is a good way to undertake the investment in gold in a systematic manner.
