Axis Mutual Fund has launched a new fund named as Axis Gold ETF, an open ended gold exchange traded fund. During New Fund Offer (NFO) period, each unit of the scheme will be issued at a face value of Rs. 100 plus premium equivalent to the difference between the allotment price & the face value of Rs. 100. The new issue will be open for subscription from 20 October and close on 3 November 2010 after which the scheme will re-open on or before 16 November 2010.
The investment objective of the scheme is to generate returns that are in line with the performance of gold.
The scheme will allocate 95% to 100% of assets in gold with medium risk profile. It would further allocate upto 5% of assets in money market instruments with low to medium risk profile. The cumulative gross exposure through gold, money market instruments and derivative positions, if any, shall not exceed 100% of the net assets of the scheme. Cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure.
The entry and exit load charge will be nil for the scheme.
The schemes performance will be benchmarked against Domestic Price of Gold.
The minimum application amount for retail investor is Rs. 5000 and in multiples of Rs. 1 thereafter. For Authorized Participants: 1 kilogram (KG) gold per application and in multiples of 1 kilogram (KG) gold thereafter. The gold should be of finesses of 995 parts per 1000, i.e. 99.5%.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs. 1 crore under the scheme during the NFO period.
The scheme will be managed by Anurag Mittal
Source: http://www.indiainfoline.com/Markets/News/Axis-MF-Launches-Gold-Fund/3341403604
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