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  • SBI-ETF Gold

    SBI-ETF Gold
    Dividend Yearly
    NA
    Category
    Equity - ETF
    52-week NAV high
    2,940.05  (As on 15-10-2018)
    52-week NAV low
    2,618.18  (As on 13-12-2017)
    Expense
    1.07% 

    Performance

    1 mnth 3 mnth 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr
    Fund Returns 0.67 3.41 2.00 9.52 4.32 6.23 2.86 1.74 -
    Scheme Details
    Fund Type
    Open Ended
    Investment Plan
    Growth
    Bonus
    NA
    Launch Date
    May 18, 2009
    Last Dividend
    NA
    Minimum Investment
    5000
  • The SBI Exchange-Traded Funds (ETF) Gold is a mutual fund scheme that invests in gold and gold bullion. The scheme aims to keep a tab on the price of gold and like any other stock, the units of this fund can be purchased or sold via the National Stock Exchange (NSE). The fund was introduced by SBI Mutual Fund with an objective of providing returns corresponding closely to the returns offered when investing in physical gold.

    Physical gold as an investment option does offer good returns to the investor but it also comes with the hassle of storage and safety risks. The SBI ETF Gold hence, is an ideal investment option for anyone who desires to invest in gold but doesn’t want the inconvenience that accompanies the physical gold. Much like a person can encash by selling gold, the investor in the SBI ETF Gold fund can encash his/her stocks by selling the units on the stock exchange.

    Investment Objective:

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

    Key Features:

    The SBI ETF Gold is ideal for investors who wish to invest in gold, gold bullion, and gold-related securities, and portrays the below-given features:

    Type of fund

    An open-ended Gold Exchange Traded scheme

    Plans available

    Growth

    Options under each plan

    Offers only growth option

    Risk

    Moderately High

    Systematic Investment Plan

    Not Available

    Systematic Transfer Plan

    Not Available

    Systematic Withdrawal Plan

    Not Available

    Investment amount for SBI ETF Gold

    Type of Investor and transaction detail

    Sale of unit by mutual fund

    Redemption of unit by mutual fund

    Investor

    Only through stock exchange

    Only through stock exchange

    Authorised Participants

    In creation unit size

    In creation unit size

    Asset Allocation for SBI ETF Gold

    Instruments

    Percentage of Allocations

    Risk

    Minimum

    Maximum

    Gold, gold bullion, and gold-related securities

    95%

    100%

    Low

    Debt and money market securities

    0%

    5%

    Medium to High

    Who can invest in SBI ETF Gold

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

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

    Mr. Raviprakash Sharma

    The SBI ETF Gold has been managed by Mr. Raviprakash Sharma since February 2011. He has over 19 years of experience in capital markets in India and also has been involved in portfolio management of clients. He is also the fund manager of SBI Gold Fund, SBI ETF Nifty 50, SBI ETF Sensex, SBI Nifty Index Fund, etc.

    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:

    • 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.
    • 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.
    • Fund of Funds (FoF) investments are not permissible under the scheme.
    • Under all its schemes, the fund house cannot own above 10% of any firm’s paid-up capital carrying voting rights.
    • 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.
    • 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.
    • The scheme shall not invest above 10% of its NAV in equity and its related securities which are unlisted.
    • Debentures of any residual maturity period will attract investment restrictions similar to debt securities.

    Why you should invest in SBI ETF Gold

    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.

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

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