SBI Gold ETF

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 Facts:

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)

SBI GETSFees/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 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

Investment Objective:

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.

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

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.

Be Sociable, Share!
ADVERTISEMENTS

Related posts:

  1. HDFC Gold ETF
  2. Axis Gold ETF
  3. Kotak Gold ETF
  4. BeES Gold ETF
  5. ICICI Gold ETF

{ 21 comments… read them below or add one }

prakash b. vaidya June 28, 2011 at 5:01 pm

how I can Invest in Gold ETF

Reply

Sathish Emmadi June 28, 2011 at 5:09 pm

Hi Prakah,

If you have a demat account, you can just trade like any other stock.
If you don’t have a demat account, I suggest visit CAMS and fill up a form for investing in any one of the below Gold Savings Funds (which invest in Gold ETFs). Alternatively you can walk out to Mutual fund office of any of the below three in your town.

Quantum Gold Savings Fund
Kotak Gold Savings Fund
Reliance Gold Savings Fund

Reply

shivang August 14, 2011 at 7:07 am

what is gold etf?hw to invest in it?

Reply

pranjali rao January 14, 2012 at 10:47 am

Hello,
This is pranjali here, i would like invest in Gold ETF plan, i heard about ETF gold in the share market news on new year eve, and i have gone through ETF plan via internet, for this we should have the d-mat account, we never invested in share market, new to this field, please guide me how to invest what all we should know to invest in this field, as i read the article at the time of inflation if the small investors want money they will not be benefited i didn’t understand this thing, for ex; if we buy 1gm or 10gms gold, how we will be benefited we will get the same market value, and why we should we invest in Gold ETF, please answer my quaries and allow me to invest in this plan.
From
Pranjali rao.

Reply

Sathish Emmadi January 14, 2012 at 11:11 am

Hi Pranjali Rao,

If you don’t have a demat account and not planning to invest in stock market other than gold etfs, of course, you can invest in gold savings funds. Please go through below two posts to get an idea of what this product is all about!

http://www.goldetf-funds.com/what-is-a-gold-savings-fund
http://www.goldetf-funds.com/list-of-gold-savings-funds

Also please go through other articles on the site, all your queries are already answered.

Reply

Simi February 24, 2012 at 8:40 am

Please explain to of in lay man terms ,gold etf

Reply

Sathish Emmadi August 14, 2011 at 4:35 pm

Hi Shivang,

Please read the below article to understand how Gold ETFs work.

http://www.goldetf-funds.com/how-gold-etfs-work-creation-units-and-gold-etf-units

Read the below one to know the way to invest in gold etfs.

http://www.goldetf-funds.com/how-to-invest-in-gold-etfs-online

Reply

Gil@Gold ETF Info September 23, 2011 at 2:18 pm

Hi, do you consider SBI gold ETF as a good option in investing in gold ETF because I know there are others like Axis gold ETF.

Reply

Thoiba November 5, 2011 at 12:03 pm

I want to invest gold ETF get me in detail info. thanks.

Reply

Sathish Emmadi December 3, 2011 at 3:05 pm

Please go through articles on this site. You will get a fair idea.

Reply

Devasis Mohanty November 9, 2011 at 7:44 am

I am trading HDFC-ETF trhu HDFC security. How can I asked them to trade with SBI-ETF ?

Reply

Sathish Emmadi December 3, 2011 at 3:04 pm

You just need to search for SBI Gold ETF in the stock names and place an order.

Reply

Narinder Kumar January 10, 2012 at 7:39 am

i want to invest in gold etf get me in detail .
Thonk u

Reply

Sathish Emmadi January 10, 2012 at 5:35 pm

Hi Narinder,

please go through posts on this site.

Reply

prashant January 22, 2012 at 1:49 pm

hi sir!!

if i buy gold etf today! can i say after 2 yrs, exchange that in terms of physical gold?? or i will only get the price of d NAV at that time!!!

Reply

Sathish Emmadi January 22, 2012 at 2:08 pm

Hi Prashant,

Physical gold delivery is possible only for 1KG or more worth units. So from a retail investor’s perspective it is the NAV at that time.

Reply

Gordhan January 26, 2012 at 5:32 am

How safe is the investment in SBI Gold ETF.

Reply

Sathish Emmadi January 26, 2012 at 9:11 am

Hi Gordhan,

Investment in any Gold ETF is subjected to market risk i.e. gold price fluctuations. Apart from that, in my opinion, other risks are minimal and more or less same with all AMCs.

Reply

k.k February 8, 2012 at 6:03 am

Hi, I really found your website to be a bit useful for the beginners like me.However I am a bit confused after reading couple of articles featuring in your site. So kindly help me out with my following doubts.
1) is SBI a good way to invest my money as gold. Is there any other good company which can help me out in getting better returns.
2) Is there any scheme or fund where, if I do not wish to trade the gold , can I convert it into physical investment?
3) The cost of gold in the market seem to be of no difference to the cost which i saw in the SBI selling cost.
4) Is there a time limit holding the investment or can i even hold it for a real long period SAY 6 or 12 months.
5)Exchange rate : when is the exchange rate applied to the investment done by the investor? is it the time when he invests or is it when he sells the investment or at both the times..? :O
6) Can I just activate my DEMAT account using SBI (suppose) and can I trade GOLD using the same DEMAT account with(or)in any other ETF companies such as kotak,BeES or any other?

I also request you to provide me the links of the info. starting from the ground 0 (basics) so as to have a better grip about the GOLD INVESTMENT.

Thanx in Advance.(kindly even mail me the support for my future references.)

Reply

neethu April 20, 2012 at 2:30 pm

hai i want to invest some money in gold ETF,and i need return on after 8 month,so can i invest my money on sbi gold ETF,
1)i want to know about minimum time period of holding investment
2)Is there any other good company which can help me out in getting
better returns.
pls help me coz i take a loan from bank,but i need that money only dec 2012

Reply

SURINDER PATIYAL November 12, 2012 at 8:44 am

How ot purchae gold through online and what is the brokerage charges for selling and purchasing of goold

Reply

Leave a Comment

*