Nippon India Mutual Fund, formerly Reliance Mutual Fund, is an asset management company (AMC) that was formed as result of Japan's Nippon Life Insurance Company buying Reliance's stake.
The fund house offers a host of products tailored for investors to meet their varied investment goals. Nippon India ETF Gold BeES is an open-ended gold exchange traded scheme. As per the scheme description, a minimum of 95% of the assets will be allocated to gold-related and physical gold instruments, while a maximum of 5% of the investment will be directed to money market instruments.
Nippon India ETF Gold BeES aims to provide investors returns which before expenses closely match the returns offered by the domestic price of gold via physical gold. Investors are, however, required to note that the mutual fund house does not provide any guarantee or assurance that the investment objective will be met.
Some of the important features of Nippon India ETF Gold BeES is listed in the table below.
Type of fund | Open-ended scheme that is listed on the exchange as an ETF or Exchange Traded Fund that invests in physical gold |
Options under the fund | This particular scheme offers investors only the growth option. |
Systematic Investment Plan | Not available under this scheme |
Systematic Transfer Plan | Not available under this scheme |
Systematic Withdrawal Plan | Not available under this scheme |
Minimum application amount |
|
Entry Load | Not applicable |
Exit Load | Nil |
*Note: Unitholders are not required to maintain a minimum balance under this fund.
Instruments | Allocations (Percentage of total assets) | Risk Profile | |
Maximum | Minimum | ||
Physical Gold and Gold-Related Instruments | 100% | 95% | Medium to High |
Money Market Instruments such as cash and cash equivalents, CBLO, and securitised debts | 5% | 0% | Low to Medium |
The following entities are eligible to invest in Nippon India ETF Gold BeES:
The formula for the calculation of the net asset value (NAV) of units under this scheme is as follows:
NAV (in INR) = Market of fair value of the scheme's investments + current assets - current liabilities and provision (including the accrued expenses)/Number of units outstanding under the scheme as on the valuation date
The net asset value will be calculated by the mutual fund house and announced at the end of every business day. The NAV will be computed in accordance with SEBI's guidelines and regulations. Once computed, the NAV of the scheme will be published in a minimum 2 daily newspapers. The same will also be updated on the official website of the mutual fund house and on the AMFI website (www.amfiindia.com).
Unitholders can purchase and sell units of this scheme on the National Stock Exchange of India Ltd. similar to any other stock. Large investors and authorised participants can directly purchase and/or sell units with the fund in Creation Unit size. The trustees of the scheme consider the domestic price of gold as the benchmark index.
The fund manager for Nippon India ETF Gold BeES scheme is Ms. Payal Wadhwa Kaipunjal. Ms. Kaipunjal has been responsible for managing the investments under this particular scheme since May 2014.
The investment restrictions for this scheme as per SEBI's regulations are as follows:
*Note: The above-mentioned list of investment restrictions is not exhaustive. The full list of investment restrictions can be found in the Scheme Information Document.
Unitholders might be eligible to receive dividends under this scheme if it is declared by the trustee. Dividends will only be paid subject to the availability of distributable surplus. The frequency of distribution and actual distribution of dividends will be at the discretion of the trustee. The declared dividend will be paid to unitholders net of the tax deducted at source within a period of 30 days from when it was declared. There is, however, no guarantee that the dividend will be paid regularly. The rate of the dividend distribution is also not fixed.
Nippon India ETF Gold BeES is an ideal investment option for individuals looking to invest in physical gold and diversify their investment portfolio via asset allocation. Individuals who are open to taking a moderately high level of risk can opt for this scheme and earn market-linked returns.
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