In this article, we will give a snapshot and review of the SBI GETS or SBI Gold Exchange Traded Scheme. The data has been sourced from the advertisements and site of the relevant Mutual fund house.
So basically, this is a Gold Based ETF from the SBI Mutual fund house which is trying to attract the investors who are looking for investing in Gold. As we all have witnessed, Gold prices in the recent past have shot up the roof and are now proving to be an excellent option for investors. SBI MF is trying to attract the investors with this.
The objective of this GOLD ETF or SBI GETS or SBI Gold Exchange Traded Scheme is to track the unit price closely with that of Gold.
Minimum Investment required during NFO : Rs. 5000/- and then in multiples of Re. 1
Load Structure of SBI GETS : Entry Load: Up to Rs. 25 Lakhs - 2.50 %, From Rs. 25 Lakhs to Rs. 50 Lakhs-1.50%, From Rs. 50 Lakhs to Rs. 1 Crore - 1.00 %, Rs. 1 Crore above - Nil.
Now this is where I would recommend that investors should NOT opt for subscription during NFO period. The reason - the entry load is heavy - 2.5%. Instead, wait for this SBI GETS ETF to list on the NSE Exchange, and then you can buy the units through your broker and have the following advantages:
1) You will pay a brokerage (maximum 1%) to your broker, instead of the heavy 2.5% entry load during the NFO
2) You will not have to meet the minimum 5000 Rs. requirement during the NFO.
So, the choice is yours.
The capital Allocation will be as follows: Gold and gold bullion - 90 - 100 %, Debt & Money Market Instruments - 0 - 10%
Then, are there any existing ETF's that you can buy?
Yes. Indian Market is now having more than 5 Gold ETF's from different fund houses. See details about Gold ETF India here .
What has been the historical performance of the existing Gold ETF schemes?
We have a comparative analysis of Gold ETF scheme. Please see the Gold ETF: Historical Performace of Gold ETF in India
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