IDBI MF mops up Rs 94 cr from first gold scheme

IDBI Mutual Fund has garnered around Rs 94 crore from its first gold fund-of-fund (FoF)  scheme so far with good response from retail investors, a top company official has said.

"Total collection under the gold fund of fund (FoF) scheme was Rs 85 crore within the period of subscription. Also, the fund has already garnered around Rs 9 crore after the repurchase opened from the last week of August," IDBI AMC managing director and chief executive Debasish Mallick told PTI in Mumbai.

The fund house launched a gold FoF scheme, which targets retail investors with no-demat accounts, in July which closed on August 8 and reopened for purchase from the last week of August. According to the scheme, the investment objective is to generate returns that will closely follow the IDBI gold exchange traded fund, which was launched last October. Usually, in a FoF scheme, the investment strategy is to follow another fund rather than investing directly in any asset.

About new launches this fiscal, Mallick said the company is likely to come up with debt and equity products this fiscal. He also said the fund house is keen to participate in the Rajiv Gandhi Equity Savings Scheme (RGESS) , announced by the government in the Budget.

"We are very keen to participate in the RGESS," Mallick said, adding the company is waiting for the final guidelines to come in. The government launched the RGESS with an objective to attract first-time investors into the equity market. IDBI Mutual Fund, promoted by public sector lender IDBI Bank, has an average assets under management of around Rs 5,200 crore as of the June quarter.