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IDBI Gold Exchange Traded Fund is an open ended gold exchange traded scheme which tracks the price of gold in the domestic market. It will be listed on the NSE and/or any stock exchange, thereby providing the investors liquidity.
Advantages:
• Pure and Secure: Each unit of IDBI Gold ETF is backed by 24 carat gold of 99.5% purity and will be held by a custodian.
• No risk of holding physical stock: As IDBI Gold ETF will be issued in demat form the risk associated with holding physical gold is reduced considerably.
• Affordable: Ideal for small retail investors as they can buy just one unit representing one gram of gold.
• Liquidity: Post listing, IDBI Gold ETF units can be easily bought / sold on the stock exchange during market hours at real-time prices as opposed to end of day prices.
• Lower cost: Brokerage charges payable on purchase of ETFs are usually lower than making charges payable on purchase of physical gold.
• Tax efficient: No Wealth Tax. Long Term Capital Gains Tax applicable after one year from the date of allotment.
| IDBI Gold Exchange Traded Fund |
| Nature |
An open-ended gold exchange traded scheme |
| Investment Objective |
To invest in physical gold with the objective to replicate the performance of gold in domestic prices. The ETF will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the Fund and the underlying asset. |
| Asset Allocation |
| Instrument |
Indicative Allocation |
Risk Profile |
| Minimum |
Maximum |
| Physical Gold |
95% |
100% |
Medium |
| Debt & Money Market Instrument |
0% |
5% |
Low to Medium |
The Gross investment under the scheme, which includes physical gold, debt securities and money market instruments, will not exceed 100% of the net assets of the scheme. |
| NFO Price |
Rs. 100 for cash at a premium equivalent to the difference between the allotment price and face value of Rs. 100/-each. Allotment price would be approximately equal to the price of 1 gram of gold. |
| Investment Strategy |
The investment strategy for the Scheme would be to invest passively atleast 95% of the corpus of the scheme in physical gold with the objective to replicate the performance of gold in domestic prices by minimizing the tracking error between the NAV of the Scheme and price of gold. The AMC will remain invested in physical gold regardless of the prevailing gold price or future outlook for this asset class. |
| Minimum Application Amount during NFO |
Rs. 10,000 and in multiples of Rs. 1 thereafter |
| Listing of Funds |
The Scheme will be listed on National Stock Exchange, Bombay Stock Exchange and/or any stock exchange as maybe decided by the AMC from time to time where investors will be able to transact (buy/sell) on the units of the ETF at the prevailing listed price on these exchanges on any trading day. Authorized Participants and Large Investors may subscribe to and/or redeem the units of the scheme directly with the Mutual Fund on any business day on an ongoing basis in creation units lot of 1000 units and multiples of 1000 units thereof or in equivalent amount in cash. |
| Mode of Investment |
Through Demat Account |
| Benchmark |
Domestic price of physical gold |
| Load Structure |
Entry Load- Not applicable; Exit load- Nil. |
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Taxation |
| IDBI Gold Exchange Traded Fund |
Resident Investor |
Mutual Fund |
| Tax on dividend |
Dividend not proposed |
Dividend not proposed |
| Captial Gains |
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| Long Term |
10% / 20%* |
Nil |
| Short Term |
Rates applicable to unit holders as per their income slabs |
Nil |
| * For further details on taxation please refer to the sectio Taxation in the SAI |
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Statutory Details: IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. (liability restricted to Rs.10 lakhs) with IDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with IDBI Asset Management Ltd. as the Investment Manager. Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the objective of the Scheme will be achieved. The NAV of the units issued under the Scheme may go up or down depending upon the factors and forces affecting the securities markets. IDBI Gold Exchange Traded Fund (An open-ended Gold Exchange Traded Scheme) is only the name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. Please read the Scheme Information Document (SID) and Statement of Additional Information (SAI) carefully before investing. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of Rs. 10 lakhs made by it towards setting up the Fund. Present scheme is not a guaranteed or assured return scheme. NAV Disclosure: NAV of the Scheme will be computed on all business days & published in two daily newspapers on all business days. Plans for investment: None
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the ‘Disclaimer Clause of NSE’.
It is to be distinctly understood that the permission given by BSE Ltd. should not in any way be deemed or construed that the SID has been cleared or approved by BSE Ltd. nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the ‘Disclaimer Clause of BSE Ltd.’.
For further information please contact: IDBI Asset Management Ltd., 5th Floor, Mafatlal Centre, Nariman Point, Mumbai- 400021 |
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KIM |
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SID |
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One Pager |
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SAI |
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| Contact Us |
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SMS: IDBIMF to 092200 92200 |
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Toll-Free: 1800-22-4324
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