SBI Gold ETF
SBI mutual funds has come up with Gold Exchange Traded Fund (ETF) in May 2009. Unlike other gold ETFs, this scheme is a growth option scheme means it doesn’t distribute dividends. But the earnings would be reflected in the price of the unit. If the other gold ETFs distribute some part of the profits earned (which is not the case so far), the price of the unit comes down proportionately. But in case of SBI GETS, the distribution option is not there.
Please find below full details about the SBI Gold ETF.
Fund Name: SBI Mutual Fund – SBI Gold Exchange Traded Scheme – Growth Option ISIN: INF200K01099
NSE Symbol: SBIGETS
BSE Scrip ID: SBIGETS
BSE Scrip Code: 590098
Face Value: 100
Fund Launch Date: May 2009
AMC: SBI Funds Management Pvt Ltd
Exchanges for Trading: NSE and BSE
Fund Manager: Mr. Arun Agarwal
Scheme Type: Open ended Exchange Traded Fund
Benchmark: Domestic price of physical Gold
Can Distribute Dividends?: No
Total Net Assets: Rs 208 Crore as at April end, 2011
Registrar: CAMS (Computer Age Management Services Private Limited)
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%
Minimum Investment: 1 Unit of SBIGETS on NSE and BSE
Lock in period: Nill
NAV announcement frequency: Every business day
Latest price of the Unit: SBI GOLD ETF Latest Price
As per SBI Gold ETF’s SID,
The investment objective of the fund is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold.
However, the performance of the scheme may differ from that of the underlying asset due to tracking error.
|Type of Asset||Minimum Investment %||Maximum Investment %||Risk Profile|
|Gold Bullion||90||100||Medium to High|
|Bonds and Money Market instruments||0||10||Low|
Investment strategy of SBI Gold ETF:
The scheme would invest in gold and endeavor to track price of the gold. The scheme invests in gold and gold bullion as underlying asset regardless of investment merit. The scheme may buy or sell gold at different points of time during the trading session at the then prevailing prices which may not correspond to its closing price, disinvestments to meet redemptions, transactions cost and recurring expenses, execution of large buy/sell orders etc. This may cause some distortion, but the scheme will try to minimize the tracking error.
The Scheme may also invest in Debt & Money Market Instruments for meeting the liquidity requirements for honouring repurchases or redemptions as permitted in the regulations 44 (5)(b) of SEBI (Mutual Fund) Regulation.
Performance of the fund:
|Performance in last 6 months||9.34%|
|Performance in last 1 year||21.36%|
|Performance since inception||22.46%|
NB: Performance is based on NAVs as of May 23rd 2011
Figures for more than one year are annualized.ADVERTISEMENTS