IDBI Mutual Fund expects to collect Rs 100cr from Gold Fund

IDBI Mutual Fund today said it expects to garner about Rs 100 crore from its recently launched Gold Fund.

The investment objective of the scheme is to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI Gold ETF) that was launched last year, IDBI Asset Management Company Managing Director and Chief Executive Debasish Mallick said. The benchmark index for this open-ended fund is domestic price of gold, he said.

"We expect to mop-up about Rs 100 from our fund of funds scheme during the NFO period," he said. The New Fund Offer (NFO) period of the IDBI Gold Fund closes on August 8.

"Gold is a great investment asset. We see investment in gold as a component of prudent diversification to hedge against uncertainties, inflation and for long-term benefits," he said.

The fund house further said investment in gold provides better inflation-adjusted returns.