IDBI Gold is an open ended fund of funds scheme launched by IDBI which will be investing in the units of IDBI Gold ETF. It will be the eleventh such fund in the industry.
Investment objective and strategy
The scheme aims to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund. The scheme may also invest up to 5% of its corpus in money market instruments and in units of IDBI Liquid Fund Scheme.
There are currently 10 gold funds and 14 Gold ETFs in the market with a total of Rs 13,946 crores of assets under management. The funds are mostly similar in their returns with the expense ratio being the only differentiating factor among these funds. Here are the other gold funds on offer:
Mr. V. Balasubramaniam is the fund manager for this scheme. He is an M.com and has a degree in CAIIB as well. He has over 32 years of experience in the finance sector out of which 14 years is in the mutual fund industry and and the rest in in Banking. Prior to joining IDBI he worked for over 8 years in the treasury branch of Indian Bank.
IDBI is a wholly-owned subsidiary of IDBI Bank and was incorporated in January 2010. They currently manage assets worth Rs 5,198 Crores (as on June 30, 2012).
NFO Open: July 25th, 2012
NFO Close: August 8th, 2012
NFO Price: Rs.10/- Per Unit
Minimum Application Amount: Rs.5,000/-
Exit load: 1% for exit within 1 year of allotment and nil if after an year.
Benchmark: Domestic Price of Gold
Fund Manager: V Balasubramanian