IDBI Gold Exchange Traded Fund is an open-ended scheme offered by IDBI Mutual Fund and managed by IDBI Asset Management Limited. The scheme tracks/replicates the performance of gold.
Investment Objective of IDBI Gold Exchange Traded Fund
IDBI Gold Exchange Traded Fund aims to generate returns that closely correspond to the performance of domestic gold through investment in physical gold as well as gold-related instruments.
Key Features of IDBI Gold Exchange Traded Fund
Here are some of the key features of IDBI Gold Exchange Traded Fund:
| Type of Fund | Open-ended scheme |
| Plans Available | None |
| Options Under Each Plan | None |
| Systematic Investment Plan | Not Available |
| Systematic Transfer Plan | Not Available |
| Systematic Withdrawal Plan | Not Available |
Investment Amount for IDBI Gold Exchange Traded Fund
| Minimum Application Amount | Only Large Investors and Authorised Participants have permission to make investments in units of the scheme on an ongoing basis. Purchases can be made in Creation Unit sizes, and the minimum number of units that can be purchased is 1,000 and in multiples thereof. |
| Minimum Additional Investment | - |
| Minimum Instalment for Systematic Investment Plans | - |
| Minimum Instalment for Systematic Withdrawal Plan | - |
| Entry Load | Not Applicable |
| Exit Load | Nil |
Asset Allocation for IDBI Gold Exchange Traded Fund
| Instruments | Allocations (Percentage of total assets) | Risk Profile |
| Physical gold and gold-related instruments | 95% to 100% | Medium |
| Debt and money market securities | 0% to 5% | Low to Medium |
Who can Invest in IDBI Gold Exchange Traded Fund?
The following entities can make investments in IDBI Gold Exchange Traded Fund:
- Resident Indians who have attained the age of 18 years
- Minors via their parents or legal guardians
- Hindu Undivided Families via their Kartas
- Proprietorship through the sole proprietor
- Partnership firms
- Mutual funds registered with the Securities and Exchange Board of India
- Banks (inclusive of Regional Rural Banks and Co-operative Banks), financial institutions, and insurance companies
- Charitable and religious trusts, endowments and wakfs of private trusts, and private trusts with the authority to make investments in mutual funds as per their trust deeds
- Persons of Indian Origin and Non-resident Indians
- Corporate bodies, companies, public sector undertakings, bodies of individuals or association of persons, and societies that have been registered under the Societies Registration Act, 1860
- Foreign Institutional Investors and Foreign Portfolio Investors who have been registered with the Securities and Exchange Board of India
- Industrial and scientific research organisations
- Air force, army, navy and other para-military funds and institutions that are eligible to invest in the scheme
- Gratuity or pension or provident or other funds that have the permission to make investments in the scheme
- Multilateral Funding Agencies and corporate bodies formed outside the country, with the approval of the Reserve Bank of India or the Government of India
- International Financial Organisations that have an agreement to make investments in India
- Sponsor, Asset Management Company or Trustee or their associates
- Other schemes offered by the fund house provided they meet the criteria set by the Securities and Exchange Board of India
- Any other categories of investors with the permission of the Securities and Exchange Board of India
NAV Disclosure and Benchmark for IDBI Gold Exchange Traded Fund
The NAV of IDBI Gold Exchange Traded Fund shall be computed on a regular basis and published in at least two newspapers that are circulated across India. Investors can also check the NAV of IDBI Gold Exchange Traded Fund on the website of the fund house and the website of the Association of Mutual Funds in India.
The following is the formula used to compute the NAV of IDBI Gold Exchange Traded Fund:
(Fair Value or Market Value of the Scheme’s investment + Current Assets - Current Liabilities and Provisions) / Number of units outstanding under the scheme
Benchmark Index of IDBI Gold Exchange Traded Fund:
The benchmark adopted by IDBI Gold Exchange Traded Fund is the domestic price of physical gold.
IDBI Gold Exchange Traded Fund Fund Manager
IDBI Gold Exchange Traded Fund has been managed by Mr. Anshul Mishra, who has been managing the scheme since April 2015. Mr. Mishra has over 10 years of experience in the mutual fund industry, and also manages a number of other schemes for IDBI Mutual Fund, such as IDBI Nifty Index Fund, IDBI Gold Fund, IDBI Equity Savings Fund, IDBI Nifty Junior Index Fund, and IDBI India Top 100 Equity Fund.
Investment Restrictions of IDBI Gold Exchange Traded Fund
The following are some of the major investment restrictions of IDBI Gold Exchange Traded Fund:
- The scheme is restricted from involving itself in securities lending or short selling.
- The scheme is restricted from investing in fund of fund schemes.
- The scheme is restricted from investing over 10% of its NAV in short-term deposits with a single scheduled commercial bank or its subsidiaries.
- The mutual fund allows the transfer of investments from one scheme to another only if the transfers that are being made are done at current market price on spot basis.
- The scheme is allowed to park its funds in the short term only for a period of 91 days, and these deposits will be held in the scheme’s name.
Dividend Policy of IDBI Gold Exchange Traded Fund
IDBI Gold Exchange Traded Fund does not declare any dividends.
Why you should invest in IDBI Gold Exchange Traded Fund
IDBI Gold Exchange Traded Fund can be a good investment option for those who seek returns in the medium to long term through investment in physical gold as well as gold-related instruments. It also invests in money market and debt securities and replicates the performance of domestic gold prices to achieve its objective.
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