Kotak Gold ETF

Kotak Gold ETF
Dividend Yearly
NA
Category
Equity - ETF
52-week NAV high
486.35  (As on 07-08-2020)
52-week NAV low
331.44  (As on 10-12-2019)
Expense
0.55%  (As on 31-08-2020)

Performance

1 mnth 3 mnth 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr
Fund Returns -2.15 8.81 29.44 31.27 28.60 18.73 12.06 13.25 -
Scheme Details
Fund Type
Open Ended
Investment Plan
Growth
Bonus
NA
Launch Date
Jul 27, 2007
Last Dividend
NA
Minimum Investment
5000

Kotak Mahindra Group was established in 1985 with the objective to provide financial services all over India. In today’s date, Kotak Group is considered to be the leading service provider in the finance sector. Having received a banking licence from the Reserve Bank of India (RBI), Kotak Group’s flagship company, Kotak Mahindra Finance Ltd. (KMFL) became the very first non banking finance entity to transform into a full functioning bank.

About Kotak Mahindra Asset Management Company Limited (KMAMC)

Kotak Mahindra Bank Limited owns a whole subsidiary known as Kotak Mahindra Asset Management Company Limited (KMAMC). KMAMC is essentially an asset management organisation for Kotak Mahindra Mutual Fund (KMMF). Having embarked on its journey during circa 1998, KMAMC in today’s date houses around 7.5 Lac investors in a variety of schemes under its umbrella.

Investment Objective of Kotak Gold ETF

Kotak Gold ETF aims to generate returns for its investors. These returns are, in turn, in concordance with investment returns in physical gold. The returns are subject to tracking errors.

Key Features of Kotak Gold ETF

Some of the significant features of Kotak Gold ETF are as follows:

Type of Fund Open ended scheme
Plans Available N/A
Risk Factor Moderately high
Systematic Investment Plan Not Applicable
Systematic Transfer Plan Not Applicable
Systematic Withdrawal Plan Not Applicable

Investment Amount for Kotak Gold ETF

The investment amount limitations as per the company’s guidelines are mentioned in the table below:

Minimum application amount Rs.5,000
Minimum additional investment N/A
Entry Load N/A
Exit Load NIL

The minimum balance to be mentioned in Kotak Gold ETF is not available currently.

Asset Allocation for Kotak Gold ETF

Investments Indicative Allocation (% of total assets) Risk Profile
Physical Gold 95% - 100% Low to Medium
Money Market and Debt Instruments 0% - 5% Low

Who can Invest in Kotak Gold ETF

The following entities will be eligible to purchase units at Kotak Gold ETF:

  • Resident individuals - single or joint (should not exceed three)
  • Guardians and parents of minors
  • Corporate entities and companies that are registered in India
  • Societies and co-operative societies that are registered in India and are allowed investment in such units
  • Statutory corporations and Public Sector Undertakings (PSUs) subject to the permissions granted by Central and State governments at regular intervals
  • Charitable trusts and religious establishments falling under the provisions of 11(5) of the Income Tax Act, 1961, also corresponding with Rule 17C of the Income Tax Rules, 1962
  • Private trust trustees who have been allowed investment in mutual fund schemes under their establishment’s deeds
  • Members of partnership firms
  • A consortium of individuals irrespective of incorporation
  • Members of Hindu Undivided Families (HUFs)
  • Banks, investment banks, regional rural, and co-operative banks
  • Non-resident Indians (NRI), Persons of Indian Origin (POI), either on a non-repatriation or full repatriation basis
  • Mutual funds that have been registered under SEBI
  • Foreign Institutional Investors (FIIs) and their sub-accounts that have been registered under SEBI
  • Indian Government approved International Multilateral Agencies
  • Paramilitary, army, navy, and air force units and such institutions that are eligible
  • Industrial and scientific research organisations
  • Pension, gratuity, provident, and such funds that have been granted permission for investment
  • Public Financial Institutions as elucidated in the Companies Act, 2013
  • Foreign Portfolio Investor
  • Educational establishments and universities
  • Certain schemes under Kotak Mahindra Mutual Fund can subscribe to the scheme’s units, however, they will be subject to certain terms and conditions mentioned in the SEBI regulations

NAV Disclosure and Benchmark for Kotak Gold ETF

NAV: The computation of Net Value Asset (NAV) in Kotak Gold ETF is done by dividing the Scheme’s net assets by the number of units that is due on the valuation date. The investments of the fund shall be valued according to the norms of valuation as mentioned in the Eighth Schedule of the Regulations or guidelines of the same nature as stated by SEBI at regular intervals.

The formula to compute NAV has been given below:

NAV= Market or Fair Value of Scheme’s investments + Current assets including Accrued Income - Current Liabilities and provisions including accrued expenses/No. of Units overdue under the Scheme/Option.

Liquidity: Investors including large investors, authorised participants, and other investors can choose to sell their respective units in stock exchanges under which the units are listed. This activity can be carried out on the trading days. The fund can/may repurchase units from authorised unitholders during any business hour, provided the value of the units does not exceed the creation unit size.

Benchmark: The scheme’s performance is benchmarked against the domestic (imported) price of Gold, constructed on the formula as stated by SEBI, as per Gazette Notification dated December 20, 2006.

Fund Manager/s for Kotak Gold ETF

The fund manager for this scheme is Mr. Abhishek Bisen and the investment manager is Kotak Mahindra AMC Limited.

Investment Restrictions of Kotak Gold ETF

The investment restrictions and limitations of Kotak Gold ETF are mentioned below:

  • A ‘passive’ approach is undertaken by AMC in order to attain the investment objective of the scheme. This scheme has its investment in gold as an asset despite such investment merit.
  • The fineness of gold that the scheme invests in shall be 0.995.
  • According to the regulation 44(5)(b), the scheme has the liberty to invest all of its funds in gold while staying in accordance with its investment objective, except to a certain extent wherein liquidity requirements might arise for repurchasing units or for the purpose of redemption.
  • There are no loans available under the scheme and the fund is not permitted to borrow any loan (of any nature) except to take care of temporary liquidity requirements for the purpose of redemption of units, repurchase of units, or dividend/interest payment to unitholders. The fund however is not permitted to borrow any amount that exceeds 20% of the scheme’s net assets. The borrowing timeframe must not exceed six months, or any other period as specified by the Regulations.
  • The scheme is permitted to make investments in other schemes from the funds that have been allocated for investment in debt securities, under the same AMC or any other mutual fund only if there is a requirement for meeting liquidity needs or for redeeming or repurchasing, only to the extent that the borrowed amount must not exceed 5% of the total net assets of the fund. Any other restriction/limit specified by AMC must be adhered to herein.
  • The scheme is not permitted to make investments in fund of fund schemes.
  • If long-term investments are involved in a certain scenario, the securities purchased or transferred must be in the Fund’s name.

Dividend Policy of Kotak Gold ETF

Within a period of 30 days from the declaration date of the dividend, the pay order or Demand Draft is sent out to the unitholders. Depending on the adequacy and availability of distributable surplus, a trustee can declare dividends. The dividends, thereafter, are distributed to all registered unitholders of the depositories. In case the payout amount is not more than Rs.500, then reinvestment of the dividend becomes mandatory.

Why you Should Invest in Kotak Gold ETF?

Kotak Gold ETF is essentially an open ended fund gold exchange and traded fund. It basically aims to provide its investors with returns that are in line with the returns that one gets upon investment in physical gold. The fund manager of this scheme is experienced in the finance sector. If you want substantial returns from your investments, Kotak Gold ETF is an effective solution.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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