Similar to other major AMCs, in September 2011, ICICI Prudential has come up with Gold savings Fund. ICICI prudential regular gold savings fund is an open ended fund of funds which primarily invests in its own ICICI Gold ETF and can invest in oversees gold ETFs in future.
ICICI Gold savings fund mainly targets retail investors. It has got Systematic Investment Plan options, which an investor can choose from. NRIs and POIs can also invest in the fund. Apart from SIP, the fund allows STP (Systematic Transfer Plan) and SWP (Systematic withdrawal Plan).
It has got three below options as far as the mode of investment is concerned.
- Growth Option: Mainly intended for long term investors. NAV reflects the gains of investments in gold for the whole period of investment.
- Dividend Payout option: Profit from investment in gold would be returned to the investors regularly. Dates would be decided by the AMC.
- Dividend Reinvestment option: The declared dividend would be reinvested in the same gold fund scheme units.
Since it is an open ended fund the units are not traded on stock exchanges like gold ETFs. So investors need not have demat accounts.
Let’s have a look at the Fund details.
Investment objective:
ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to provide investment returns that closely corresponds to returns of the underlying Gold linked fund(s) or Schemes.
Investment Style/Asset Allocation Pattern:
| Type of Asset | Minimum Investment % | Maximum Investment % | Risk Profile |
| Gold Bullion | 90 | 100 | Medium to High |
| Money Market/Liquid instruments (including derivatives)/funds | 0 | 10 | Low |
Latest Asset Allocation of the fund can be viewed at www.icicipruamc.com
NAV Declaration: The AMC discloses the closing NAV of the day on the AMFI website (www.amfiindia.com)
Minimum Investment Amount:
Lump sum Amount:
| Purchase | Additional Purchase | Repurchase
|
| Rs. 5000/- and in multiples of Re 1/- thereof of | Rs. 1000/- and in multiples of Re 1/- thereof of | Rs.1000/- or 100 Units or account balance whichever is lower
|
Purchase is when you are buying SBI Gold Fund units for the first time. Additional purchase is when you are doing subsequent purchases. Repurchase is when you are selling SBI gold fund units to the AMC.
SIP Route:
Monthly Plan: It has three plans to choose from.
| Minimum Amount | Minimum Period |
| Rs 1000 and in multiples of Re. 1/- thereafter | 5 Months (The investors need to give 5 post dated cheques in advance. The cheques should be dated 7th or 10th or 15th or 25th of the respective months) |
Quarterly Plan:
| Minimum Amount | Minimum Period |
| Rs 5000 and in multiples of Re. 1/- thereafter | 4 Quarters |
SWP Route: Investors can invest lump sum money and withdraw at regular intervals. It is best suited for retired employees who can benefit from the regular income. The minimum withdrawal amount would be Rs 500. The account would get closed if the amount remained in the account comes down below Rs 5000. An investor can change the withdrawal amount at any point in time provided it’s not less than Rs 500 and the account balance should not go below Rs 5000.
STP Route:
Systematic Transfer Route is for those investors who would like to transfer amounts into other mutual fund schemes of low risk profile. When an amount is redeemed from the scheme exit load is applicable and the remaining amount would be invested in the other scheme.
Cheques should be issued on the name of “ICICI Prudential Regular Gold Savings Fund” and crossed “Account Payee Only”.
Benchmark: Domestic price of physical Gold
Fund Manager: Chaitanya Pande
Fees/Charges:
Entry Load: No entry load as per SEBI rules.
Exit Load: 2% if you exit within 1 year from the date of allotment. Nil if you exit after 1 year from the date of allotment.
Recurring Expenses (Total Expense Ratio): 0.75% on average weekly assets.
Performance of the Fund:
| Performance in last 1 months | -0.9% |
| Performance in last 3 months | -0.7% |
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{ 2 comments… read them below or add one }
I would like to know more about gold savings fund.
Would liek to invest in some gold etf as part of saving plan