Religare Gold ETF

Religare Gold ETF

Religare with a success story in the stock broking industry entered the mutual fund sector to capitalize its brand value and soon it came up with a gold exchange traded fund to tap the ever green gold market in India. With the competition at its peak, religare gold ETF could capture only a small market share. However, it’s still a good bet as far as the quality of service and tracking error are concerned.

Please find below full details about the Religare Gold ETF. 

Religare Gold ETF

Fund Facts:

Fund Name:  Religare Mutual Fund – Religare Gold Exchange Traded Fund

ISIN:  INF205K01361

NSE Symbol:  RELIGAREGO

BSE Scrip ID: RELIGAREGO

BSE Scrip Code: 533172

Face Value:  100

Fund Launch Date: March 2010

AMC: Religare Asset Management Company Limited

Exchanges for Trading: NSE and BSE

Fund Manager: Mr. Nitish Sikand

Scheme Type: Open ended Exchange Traded Fund

Benchmark: Domestic price of physical Gold

Can Distribute Dividends?: Yes

Fund Size: 43.58 Crore as at March end 2011

Registrar: Karvy Computershare Pvt. Ltd.

Fees/Charges:

Entry Load: No entry load as per SEBI rules.

Exit Load: No exit load as the fund house doesn’t involve in redemptions. An investor can sell it on the exchange. Only brokerage charges are applicable.

Recurring Expenses (Total Expense Ratio): 2.5%

Other Details:

Minimum Investment: 1 Unit of RELIGAREGO on NSE and BSE

Lock in period: Nill

NAV announcement frequency: Every business day

Latest price of the Unit: Religare GOLD ETF Latest Price

Investment Objective:

As per Religare Gold ETF’s SID,

To generate returns that closely corresponds to the returns provided by investment in physical gold in the domestic market, subject to tracking error.

However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.

Investment Strategy:

The fund will be managed passively with investments in physical gold and will endeavor to track the performance and yield of its underlying asset viz. gold. Investments in physical gold will be made regardless of any investment merit. The fund intends to follow a fully invested approach and will have a minimum exposure of 90% of its assets

in gold and gold bullion at all times. The fund may buy and sell gold at different points of time during the trading session which may or may not correspond to the closing price of gold, maintain cash to meet its liquidity requirement which may result in the Scheme having tracking error and to that extent the performance of the Scheme may not commensurate with the performance of its underlying asset.

However, the fund manager will try and minimize the tracking error to the fullest extent possible. The Scheme may also invest in the instrument having gold as underlying, as and when permitted by SEBI. Warehouse receipts and other permitted securities linked to gold prices and units of International Gold ETF are some of the instruments in which the

Scheme may invest as and when permitted by SEBI.

Investment Style:

Type of Asset Minimum Investment % Maximum Investment % Risk Profile
Gold Bullion 90 100 Medium to High
Bonds and Money Market instruments 0 10 Low

Current Portfolio:

Type of Asset Investment %
Gold Bullion 100.3%
Bonds and Money Market instruments -0.3%

Performance of the fund:

Performance in last 6 months 9.54%
Performance in last 1 year 17.96%
Performance since inception 26.92%

NB: Performance is based on NAVs as of May 26th 2011

Figures for more than one year are annualized.

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Related posts:

  1. Gold ETFs list – Gold ETF funds list in India
  2. HDFC Gold ETF
  3. Axis Gold ETF
  4. SBI Gold ETF
  5. Reliance Gold ETF

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