Gold Investments have been covered in detail here in the past few months.Ever since the stock market crash in late 2008 , i realized that my investment portfolio is entirely Equity based.In a bid to diversify my portfolio and hedge against Equity risk, i was considering investing into a non-equity based vehicle. GOLD became an obvious choice since it has had a bullish run for more than a year now and is still going strong.Infact, in the past year GOLD has broken its all time high many a times.Next in series was to understand the various ways to Invest in Gold based products. In a detailed How To Invest in Gold , i figured that GOLD based ETF’s turn out to be the best bet for a retail investor.The investment limit is not huge and the process is as simple as investing in a Mutual Fund.Here is one of the newly launched GOLD based ETF. Religare Mutual Fund has launched a New Fund named Religare GOLD Exchange Traded Fund. A few salient features of the fund are Investment Objective : Generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error
Investment Pattern : 90% to 100% of assets in physical gold with medium risk profile. It would further invest up to 10% of assets in debt and money market instruments with low to medium risk profile.
Minimum Application Amount :
- Retail Investors: Rs 5000 and in multiples of Re. 1 thereafter
- Large Investors: Rs 15 lac per application and in multiples of Re. 1 thereafter or 1 kilogram (KG) gold per application and in multiples of 1 kilogram (KG) gold thereafter
Unit Price: Rs.100 per unit plus premium and No Entry and Exit Load
The scheme’s performance will be benchmarked against price of gold.
The units of the scheme will be listed on the Capital Market Segment of the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Ltd. (BSE) within 30 days from the closure of NFO.
Since, the performance of this fund will closely correspond to the price of physical GOLD, it become as good as buying physical GOLD but on paper.With the Stock Markets still volatile, I am seriously considering investing in the RELIGARE Gold Exchange Traded Fund.
Have you invested in a GOLD based ETF before or do you hold any? Any parameters that i should check for before investing.Suggestions Welcome
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