SBI Mutual Fund has launched SBI Gold Fund, an open ended Fund of Fund to enable the common man to invest systematically in gold and take advantage of the current rally.
The New Fund Offer (NFO) open for subscription from August 22, 2011 and close on September 5, 2011. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.
The fund is designed in such a way, that an investor can invest through a single investment or through Systematic Investment Plan (SIP) as per their convenience. The minimum denomination of investment is kept as Rs 100, which is very affordable for a common man. (View - New Fund Offers open NOW)
The corpus collected through the NFO will be invested in SBI GETS, the Gold ETF offering from SBI Mutual. SBI GETS, the best performing gold ETF in the last 6 months has given returns of 28.6% as on 18th August 2011 which is 36.57% higher than the BSE Sensex returns of -12.5% as on August 18th 2011.
Speaking at the launch Mr. Deepak Chatterjee, Managing Director, SBI Mutual Fund said, “We at SBI Mutual Fund have always believed in offering the best of products at the right time considering customer needs. In the current equity turmoil, we believe that SBI Gold Fund should certainly be one of the best investment opportunities under consideration for the common man to hedge their risks. It’s a convenient product and will give an opportunity to an investor to invest in the purest form of gold without the need of buying and storing physical gold that too without a Demat account, unlike in case of Gold ETFs.”
Mr. Navneet Munot, Chief Investment Officer also added saying, “Given the uncertainties in the global economic environment, gold as an asset class offers an excellent hedge. It has also been one of the best performing asset class over the last 10 years. SBI Gold fund with its underlying investment in SBI GETS provides opportunity to participate in this asset class through Systematic Investment plan. We believe SIP through SBI Gold fund is the most efficient way of owning this asset. It is an interesting option to enhance portfolio diversification”.
Investment Objective: The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS).
Fund Type: An open ended fund of fund scheme
Plans /Options : The scheme offers growth option and dividend payout option. Dividend option offers reinvestment, payout and option.
Minimum Application Amount : The minimum investment amount is Rs 5000 and in multiples of Rs 1 thereafter. Additional Purchase Rs. 1000/- and in multiples Rs.1000/- or 100 Units or account of Re. 1/- thereof of Re.1/- thereof.
Load Structure : Entry Load: Not Applicable Exit Load: Exit within 1 year from the date of allotment – 1 %, Exit after 1 year from the date of allotment – Nil.
Asset Allocation: The scheme will invest 95% to 100% of assets in units of SBI GETS and upto 5% in Reverse repo and /or CBLO and/or short-term fixed deposits and/or Schemes which invest predominantly in the money market securities or Liquid Schemes. The Scheme shall not invest in securitized debt. The Fund Manager may invest in Liquid Schemes of SBI Mutual Fund. However, the Fund Manager may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities.
Benchmark Index : The Scheme’s performance will be benchmarked against the price of physical gold.
Fund Manager: The fund will be managed by Mr. Raviprakash Sharma.
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