Name of scheme: HDFC Gold Exchange Traded Fund
Type of Scheme: An Open Ended Gold Exchange Traded Fund (HGETF)
Investment Objective: The investment objective of the scheme is to generate returns that are in line with the performance of gold, subject to tracking errors.
NFO period: 25 June-23 July 10
NFO Price: Each unit of HGETF having a face value of Rs. 100/- will be issued at a premium equivalent to the difference between the allotment price and the face value of Rs. 100/-. Each unit is approximately equal to 1 (one) gram of gold.
Benchmark: Domestic price of physical gold
Purity of Gold: Purity (fineness) of 995 parts per 1,000 (99.5%) or higher.
Plans / Options: Currently, there are no investment Plans / Options being offered under the scheme.
Load Structure (For purchases during the NFO Period and Ongoing Basis):
Entry Load: Not Applicable
Exit Load:
For Creation Unit Size: No exit load will be levied on redemptions made by Authorised Participants / Large Investors directly with the fund in Creation Unit Size.
For other than Creation Unit Size: Not Applicable
The units of HGETF in other than Creation Unit Size cannot be directly redeemed with the Fund. These units can be redeemed (sold) on a continuous basis on the NSE during the trading hours on all the trading days.
Minimum Application Amount:
During the NFO Period: Authorised Participants: In Creation Unit Size only. Each Creation Unit Size will consist of 1,000 units of HGETF.
Other Investors (including Large Investors): Rs. 5,000 and any amount thereafter per application during the NFO period.
Unit: 1 Unit of HGETF will be approximately equal Unit to 1 gram of gold.
Asset allocation: The scheme will invest 90-100% in gold bullion (investments in gold instruments (including derivatives) will be made as and when SEBI permits mutual funds to invest in gold related instruments). The scheme may also invest 0-10% in debt securities and money market Instruments (investment in securitised debt shall not normally exceed 10% of the net assets of the scheme).
Source: http://www.indiainfoline.com/Markets/News/HDFC-Mutual-Fund-set-to-launch-HDFC-Gold-Exchange-Traded-Fund/3140718119
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