Axis MF files offer document for Gold ETF

Axis Mutual Fund (MF) has planned to launch a new scheme named as Axis Gold ETF, an open ended Gold Exchange Traded Fund. The new fund offer (NFO) price for the scheme is Rs 100 per unit plus premium equivalent to the difference between the allotment price and the face value of Rs 100.

The investment objective of the scheme is to generate returns that are in line with the performance of gold.

The scheme expects to raise minimum subscription amount of Rs 2 million during the NFO period.

The minimum investment amount under is Rs 5,000 per application and multiples of Re 1 thereafter.

The scheme would allocate 90% to 100% of assets in physical gold (includes investments in gold related instruments (including derivatives related to gold) which will be made as and when SEBI permits mutual funds to invest in gold related instruments). The scheme may also invest upto 10% in money market instruments.

The scheme will be benchmarked against domestic price of physical Gold.

Anurag Mittal will manage the fund.

Source: http://www.myiris.com/newsCentre/storyShow.php?fileR=20100628152945707&dir=2010/06/28&secID=livenews