SBI-ETF Gold

To offer returns that commensurate to the returns offered by the price of gold by investing in physical gold.

Key Highlights of SBI Gold ETF Fund

Key Highlights of SBI Gold ETF Fund:

1. Current NAV: As of 27 March 2025, the Net Asset Value (NAV) for the Growth option under the Regular plan stands at Rs. 76.08.

1. Returns: The fund has delivered returns of 30.26% over one year, 17.77% over three years, 15.56% over five years, and 10.84% since its launch. For comparison, the category returns for the same periods are 30.03% (one year), 18.24% (three years), and 15.4% (five years).

1. Fund Size: As of 28 February 2025, the total Assets Under Management (AUM) for the fund is Rs. 7,035.91 crore.

1. Expense Ratio: The expense ratio for the Regular plan is 0.73%, as recorded on 4 March 2025.

1. Exit Load: There is no exit load applicable to this fund.

1. Minimum Investment: The minimum investment required is Rs. 5,000, with no minimum requirement for additional investments or SIP contributions.

Who can Invest in SBI ETF Gold

Subscription to the units of SBI ETF Fund can be done by the below-given persons/entities:

1. Adult individuals residing in India, either singly or jointly (cannot exceed 3 people)
2. Minors through a legal guardian or parent
3. Persons of Indian Origin (PIO)/Non-Resident Indians (NRIs), on repatriation or non-repatriation basis
4. Hindu Undivided Families
5. Corporate bodies and companies registered in India
6. Partnership firms in the name of any one of the partners
7. Association of Persons or Body of Individuals
8. Proprietorship in the name of the sole proprietor
9. Universities and educational institutions
10. SEBI registered Foreign Portfolio Investor
11. Scientific and Industrial Research Organisations
12. International Multilateral Agencies approved by the RBI and Government of India
13. Army, Navy, Air Force, and other paramilitary funds
14. Religious and Charitable Trusts, Wakfs, or endowments of private trusts
15. Financial institutions and banks (including Regional Rural Banks and Co-operative Banks)
16. Pensions/Gratuity/Provident Fund to a permissible extent
17. AMC/Trustee or Sponsor or their associates
18. Mutual fund schemes registered with SEBI (Securities and Exchange Board of India)

NAV Disclosure and Benchmark for SBI Magnum Global Fund

The Net Asset Value (NAV) is the value per unit of the scheme at the close of every business day. Investors can determine the value of their investments by multiplying the NAV with the unit balance. The NAV of the SBI ETF Gold will be computed up to 4 decimals.

The NAV of the scheme for every business day will be calculated and displayed on the website of SBI Mutual Fund - www.sbimf.com and on the website of AMFI - www.amfiindia.com by 9:00 p.m. The NAV will also be sent for publication daily in 2 newspapers with nationwide circulation.

Liquidity: Being an exchange-traded scheme, it offers investors the ability to sell and buy units quickly at the ruling market price and hence, offers high liquidity.

Benchmark Index: The price of gold

Fund Manager

Ms. Vandana Soni

The SBI ETF Gold has been managed by Ms. Vandana Soni. Since January 2024. Ms Vandna Soni became a part of SBIFML in December 2021 as an Equity Research Analyst, focusing on commodities and related sectors, including Cement, Metal, Oil, and Gas. She brings a decade of experience in financial services. Before joining SBIFML, she worked with SBICAP Securities Limited from April 2019 to December 2021, primarily handling equity research across various sectors.

Taxation Rules for SBI Gold ETF

Short-term Capital Gains (STCG): If the units are sold within three years of investment, the entire profit is added to the investor’s income and taxed as per the applicable income tax slab.

Long-term Capital Gains (LTCG): For units redeemed after three years, the gains are taxed at 20% after applying indexation benefits. Indexation adjusts the purchase price to factor in inflation, thereby reducing the taxable capital gain and lowering the overall tax liability.

Tax on Dividend Income: Any dividend received from the fund is added to the investor’s total income and taxed as per the applicable tax slab.

Tax Deducted at Source (TDS) on Dividends: If dividend earnings exceed Rs. 5,000 in a financial year, the fund house deducts 10% TDS on the dividend payout.

Investment Restrictions on SBI ETF Gold

The Securities and Exchange Board of India (SEBI) has laid down the below-given investment restrictions on the subscription to the units of SBI ETF Gold:

1. The scheme is permitted to only invest in gold, gold bullion, and gold-related securities as per its investment objective except in cases where investments can be made in other securities to meet the liquidity requirements.
2. The scheme will not be permitted to invest above 10% of its NAV in debt securities comprising money and non-money market securities issued by a single issuer and have to be rated higher than the investment grade. This limit is expandable up to 12% of the scheme's NAV provided it receives approval from the Trustees and Board of Directors.
3. Fund of Funds (FoF) investments are not permissible under the scheme.
4. Under all its schemes, the fund house cannot own above 10% of any firm's paid-up capital carrying voting rights.
5. The scheme can invest in different schemes under the same fund house or a different mutual fund with no fees charged and such investments cannot be more than 5% of the fund's net asset value.
6. The fund will not invest above 10% of its NAV in REIT and InvITs units, and above 5% of its NAV in the REIT and InvITs that have been issued by a single issuer.
7. The scheme shall not invest above 10% of its NAV in equity and its related securities which are unlisted.
8. Debentures of any residual maturity period will attract investment restrictions similar to debt securities.

Why you should invest in SBI ETF Gold

1. Transactions are easier - Units of SBI ETF Gold can be bought and sold at any time provided that the stock exchange is open. Since GST rates do not apply to gold ETFs, units can be bought from any part of India.
2. Easy trading - The purchase and sale of units of SBI ETF Gold are easy and follow the same procedure as trading in equities. 1 unit of gold ETFs is equivalent to 1 gram of gold and to invest in a gold ETF, investors can approach a stockbroker or fund manager.
3. Safe investment option - There is no chance of theft in gold ETFs and since gold rates do not often fluctuate, it is a risk-free investment option.
4. Can be used as a security collateral - Like physical gold can be pledged as a security while borrowing money from financial institutions, the same can be done with a gold ETF.
5. Economical - As there is no entry or exit system involved in the trading of gold ETFs, you will not need to pay any load charges. Only 0.5% to 1% of the brokerage fee needs to be paid during purchase or sale of units.
6. Portfolio diversification - If you wish to diversify your investment portfolio, gold ETFs can be a good bet. A diversified portfolio will offer better returns during unstable market situations by hedging the risks.

Tax benefits - Since gold ETFs do not attract wealth tax or securities transaction tax, investors can enjoy long-term capital gains.

GST rate of 18% applicable for all financial services effective July 1, 2017.