SBI Gold Fund, launched by SBI Mutual Fund, is an open ended fund of fund whose investment objective is to seek to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme. SBI Mutual Fund will offer systematic investment plan too for this fund so that retail investors can participate in the recent rally observed in Gold. The corpus collected through the NFO will be invested in SBI GETS, the Gold ETF offering from SBI Mutual.
SBI Gold Fund is a convenient product and will give an opportunity to an investor to invest in the purest form of gold without the need of buying and storing physical gold, that too, without a dematerialised account unlike gold exchange traded funds. To take advantage of the recent rally in gold prices, investors could avail gold loans from the country’s largest lender State Bank of India for gold exchange traded funds. Gold has given an average return of 25% this year whereas Stock Market is at at return of -12%.
The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.
At the end of June quarter, SBI MF managed assets worth Rs 47,874 crore.
Issue Opens: The issue shall open on 22 Aug 2011.
Issue Closes: The issue shall close on 5 Sep 2011.
Mutual Fund Family: SBI Funds Management Private Limited
Fund Class: Hybrid (Fund of Fund)
Fund Type: Open-Ended
Investment plan: The fund offer Growth and Dividend investment plan. Dividend option offers reinvestment, payout and option.
Fund Manager: The fund shall be managed by Raviprakash Sharma.
Entry Load: 0.00 %
Exit Load: 1.00 % for exits within 1 year from the date of allotment. 0% for exits after 1 year
Minimum Investment: Rs 5000 and in multiples of Rs 1000 thereafter
Asset Allocation: The scheme will invest 95% to 100% of assets in units of SBI GETS and upto 5% in Reverse repo and /or CBLO and/or short-term fixed deposits and/or Schemes which invest predominantly in the money market securities or Liquid Schemes. The Scheme shall not invest in securitized debt. The Fund Manager may invest in Liquid Schemes of SBI Mutual Fund. However, the Fund Manager may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities.