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Groww Mutual Fund has launched an open ended fund that will offer investors a new, cost-efficient and convenient way to invest in gold, it said on Tuesday.
A Gold Exchange-Traded Fund (ETF) is an investment fund traded on stock exchanges and that seeks to mirror the price movement of physical gold in the domestic market.
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The Groww Gold ETF aims to replicate the domestic price of physical gold, providing investors a way to invest in bullion with 99.5 per cent purity. This cost-effective investment option removes the hassle of purchasing, storing, or insuring physical gold, while still allowing investors to capitalise on price fluctuations.
Objective of scheme: The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL-IBX AAA NBFC-HFC Index – Dec 2025 before expenses, subject to tracking errors.
Benchmark: The scheme will be benchmarked against the domestic price of physical gold.
Period: The new fund offer (NFO) of the scheme is open for subscription and will close on October 18.
Asset allocation: The scheme will allocate 95-100 per cent in gold (physical and related instruments as permitted by the markets regulator) and 0-5 per cent in debt and money market instruments including units of mutual funds.
Minimum investment: The minimum investment and additional purchase amount is Rs 500 and in multiples of Re 1 thereafter.
Exit load: There is no exit load.
Expense ratio: The maximum total expenses ratio (TER) permissible under regulation 52 (6) (b) is up to 1 per cent.
Fund manager: The fund is managed by Wilfred Gonsalves.
First Published: Oct 08 2024 | 3:25 PM IS