Escorts Gold Exchange Traded Fund
Escorts Mutual Fund has filed a draft offer document for its proposed Escorts Gold Exchange Traded Fund before SEBI. Escorts is the latest entrant into the Gold Exchange Traded Funds. It may already be recalled that Benchmark, UTI, Kotak, ICICI Pru have already put up their plans for the Gold ETFs and are in various stages of going to the investors.
According to the draft offer document, Escorts Gold Exchange Traded Fund will be an open ended fund which will be listed on the Exchange in the form of an Exchange Traded Fund (ETF) tracking domestic prices of gold through investments physical Gold and Gold related instruments, which have Gold as underlying, as specified by SEBI from time to time.
The primary objective of the scheme is to provide returns that, before expenses, closely correspond to the returns provided by domestic price of gold by investing predominantly in Gold and Gold related instruments, which have Gold as underlying, as specified by SEBI from time to time. It is intended to constitute a simple and cost effective means of making an investment similar to an investment in Gold. The value of units shall reflect, at any given time, the price of Gold and Gold related instruments owned by the scheme less the expenses incurred.
The offer document filed is really very informative and also had a section about where the investors money will be put. Amongst the methods of investments in gold are: Bullion, Coins, Gold Certificates, Gold Accounts and Gold shares. Gold shares are actually shares of companies that are into Gold mining business.
Finally, if you wish to invest in this fund, the minimum application amount is Rs.5000 and in multiples of Rs. 1000 there after.
Add commentFebruary 10th, 2007