The new fund offer (NFO) for the scheme will open for subscription on October 25 and will close on November 8.
The scheme’s investment objective is to seek capital appreciation by investing in units of Gold ETFs. It will be benchmarked against the domestic price of physical gold and will be managed by Shyam Agarwal and Kedarnath Mirajkar.
The minimum application amount is Rs 500, with subsequent investments in multiples of Re 1. The minimum redemption amount shall be ‘any amount’ or ‘any number of units’ as requested by the investor at the time of redemption. For monthly SIPs, the minimum application amount is Rs 500, with a minimum of one installment.
The scheme will invest 95-100% in units of Gold Exchange Traded Funds (ETFs) and 0-5% in debt securities and money market instruments. The investment strategy of the scheme is to passively invest in Gold ETFs, remaining invested in the underlying scheme regardless of the prevailing gold price or future outlook for this asset class.
The maximum Total Expense Ratio (TER) permissible under Regulation 52 (6) is up to 1%.“Gold is commonly seen as a commodity that retains its worth and buying power in times of inflation. This fund provides a convenient and effective method for investing in gold without worrying about storage or security. As Gold has a low correlation with equity, it helps to lower the overall volatility of your investment portfolio,” said Vishal Jain, CEO, Zerodha Fund House.”Our Gold FoF is designed to make gold investing easier and more accessible for everyone. The option to invest via SIP allows investors to gradually build
their exposure to gold over time, making it an ideal solution for both first-time and seasoned investors,” said Vaibhav Jalan, CBO, Zerodha Fund House.
The scheme is suitable for those seeking to generate capital appreciation over the long term and who want to invest in units of Gold ETFs, which in turn invest in physical gold. The principal invested in the scheme will be categorized as “high” risk according to the scheme’s riskometer.
