The NFO (New Fund Offer) open for subscription from August 22, 2011 and close on September 5, 2011.
The fund is designed in such a way, that an investor can invest through a single investment or through Systematic Investment Plan (SIP) as per their convenience.
The minimum denomination of investment is kept as Rs 100, which is very affordable for a common man.
The corpus collected through the NFO will be invested in SBI GETS, the Gold ETF offering from SBI Mutual. SBI GETS, the best performing gold ETF in the last six months has given returns of about 28 (As on 16th August 2011) which is 36.57% higher than the BSE Sensex returns of minus 9%
Mr. Deepak Chatterjee, Managing Director, SBI Mutual Fund said, “ In the current equity turmoil, we believe that SBI Gold Fund should certainly be one of the best investment opportunities under consideration for the common man to hedge their risks. It’s a convenient product and will give an opportunity to an investor to invest in the purest form of gold without the need of buying and storing physical gold that too without a Demat account, unlike in case of Gold ETFs.”
Mr. Navneet Munot, Chief Investment Officer said, “Given the uncertainties in the global economic environment, gold as an asset class offers an excellent hedge. It has also been one of the best performing asset class over the last 10 years. SBI Gold fund with its underlying investment in SBI GETS provides opportunity to participate in this asset class through Systematic Investment plan. We believe SIP through SBI Gold fund is the most efficient way of owning this asset. It is an interesting option to enhance portfolio diversification”.
Scheme Full Details:
Investment Objective: The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS).
Asset Allocation: The scheme will invest 95% to 100% of assets in units of SBI GETS and upto 5% in Reverse repo and /or CBLO and/or short-term fixed deposits and/or Schemes which invest predominantly in the money market securities or Liquid Schemes. The Scheme shall not invest in securitized debt. The Fund Manager may invest in Liquid Schemes of SBI Mutual Fund. However, the Fund Manager may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities.
Fund Type: An open ended -Fund of fund scheme
Income Options : Growth/dividend (Reinvestment/payout).
Minimum Amount : Rs 5000
Additional Purchase Rs. 1000
Entry Load: Nil
Exit Load: Exit within 1 year from the date of allotment – 1 %, Exit after 1 year from the date of allotment – Nil.
Fund Manager: Mr. Raviprakash Sharma.
Benchmark Index : The Scheme’s performance will be benchmarked against the price of physical gold.
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