This article contains Details Analysis & Investment opinion about Reliance My Gold Plan
Reliance Money/ Reliance Capital, through its Relaince Money Precious Metals company, has come out with another gold based investment scheme. Reliance is a big name trusted by many specially in India and their investment arm is not leaving any possibility to capitalize on that brand name. Reliance already has a lot of gold based schemes, namely Reliance Gold Savings Plan and Reliance Gold ETF, and this is another ariant of the same gold based investment scheme which is now available to small investors.
Showing posts with label Gold Mutual Fund. Show all posts
Showing posts with label Gold Mutual Fund. Show all posts
Sunday, 13 January 2013
Thursday, 1 March 2012
Motilal Oswal MOSt Shares Gold ETF NFO: Review Analysis & Details
Details about Motilal Oswal MOSt Shares Gold ETF: Review, Analysis, Details & Investment Opinion.
Another mutual fund house is going to make an entry into the Gold based ETF fund offering. This time it is the Indian brokerage and asset management firm called Motilal Oswal India which is going to launch its mutual fund called the Motilal Oswal MOSt Shares Gold ETF.
In this article, we will analyze how good is this Motilal Oswal MOSt Shares Gold ETF NFO, whether this Motilal Oswal MOSt Shares Gold ETF offers anything new or unique for the investors and whether the investors should invest in Motilal Oswal MOSt Shares Gold ETF.
What are the NFO dates for Motilal Oswal MOSt Shares Gold ETF?
The NFO period for Motilal Oswal MOSt Shares Gold ETF is from 2nd March 2012 and will close on 16th March 2012. After the NFO period, the regular buying, selling and redemption of gold ETF fund units will start.
What is so unique about this Motilal Oswal MOSt Shares Gold ETF?
Motilal Oswal hae launched many ETF's in the past and all of them have come with a unique feature. See the following details to know about their individual offerings:
- Motilal Oswal MOSt Shares M50 ETF
- Motilal Oswal Most Shares NASDAQ-100 Fund
- Motilal Oswal MOSt Shares M100 ETF-Fund
So what is unique about this Motilal Oswal MOSt Shares Gold ETF - this is the one and only Gold ETF which allows investors an option to actually take physical delivery of gold at the time of redemption of the Gold ETF units. That means, I as a investor of Motilal Oswal MOSt Shares Gold ETF purchase the gold ETF units. Say I hold it for few months and now I want to redeem my ETF units. I have 2 options:
1) I can simple sell back my Gold ETF units and get money back at the effective price of my units
2) I can actually ask for physical gold (i.e. the gold bar) instead of taking the money
This is the only Gold ETF in India which is offering this kind of physical gold delivery and this is what sets it apart.
What are the other competitor products available in comparison to Motilal Oswal MOSt Shares Gold ETF?
If not hundred, then nothing less than that are available in terms of Gold ETF's and gold saving funds. Check out the complete list
- All Gold ETF's
- All Gold Saving Funds
What are the risks of investing and trading Motilal Oswal MOSt Shares Gold ETF?
Obviously, you are taking a bet on the gold prices. If the gold prices go down after you invest in this Gold ETF, your investment might suffer a loss. It will not matter whether you have the option of physical gold redemption or money redemption. This risk is borne by the investor.
Another thing is that this Motilal Oswal MOSt Shares Gold ETF requries a minimum investment of Rs. 10000, while other Gold funds and gold saving funds are offering investments for much lower amounts.
Final Thoughts about Motilal Oswal MOSt Shares Gold ETF?
Overall, it is another Gold based ETF. Option of physical gold redemption is good but think about it - why would an investor go for physical gold redemption? Only if he needs the physical gold - say for marriage in the family or similar occassion. And what will he do after getting the physical gold which is in minimum 10 gm gold bar units? He will have to anyways approach the jeweller to convert this gold bar into jewellery.
So overall - option of physical redemtion looks good, but investors need to take a call on its usability as per their own needs.
See List of All Mutual Fund and NFO Articles here
RiddiSiddhi Bullions (RSBL) will be providing the Gold bars for physical redemption, but the redemption will actually happen with T+5 days settlement cycle in case of physical gold redemption - i.e. one needs to wait for 5 days to actually receive the gold bars. Also note that physical delivery is limited to only 22 cities in India as of now, so rest city investors need to keep this in mind. They should check how the physical gold will be made available to them if they reside in other cities.
This ETF will be listed both on NSE and BSE.
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 10,000 and in multiples of Re 1 afterwards.
Tax benefit will NOT be available in Motilal Oswal MOSt Shares Gold ETF.
The Motilal Oswal MOSt Shares Gold ETF also claims that it offers discount as compared to gold spot prices. There is no wealth tax for Motilal Oswal MOSt Shares Gold ETF.
Another mutual fund house is going to make an entry into the Gold based ETF fund offering. This time it is the Indian brokerage and asset management firm called Motilal Oswal India which is going to launch its mutual fund called the Motilal Oswal MOSt Shares Gold ETF.
In this article, we will analyze how good is this Motilal Oswal MOSt Shares Gold ETF NFO, whether this Motilal Oswal MOSt Shares Gold ETF offers anything new or unique for the investors and whether the investors should invest in Motilal Oswal MOSt Shares Gold ETF.
Motilal Oswal MOSt Shares Gold ETF NFO: Review Analysis & Details
Let's begin with some basic details about Motilal Oswal MOSt Shares Gold ETF.What are the NFO dates for Motilal Oswal MOSt Shares Gold ETF?
The NFO period for Motilal Oswal MOSt Shares Gold ETF is from 2nd March 2012 and will close on 16th March 2012. After the NFO period, the regular buying, selling and redemption of gold ETF fund units will start.
What is so unique about this Motilal Oswal MOSt Shares Gold ETF?
Motilal Oswal hae launched many ETF's in the past and all of them have come with a unique feature. See the following details to know about their individual offerings:
- Motilal Oswal MOSt Shares M50 ETF
- Motilal Oswal Most Shares NASDAQ-100 Fund
- Motilal Oswal MOSt Shares M100 ETF-Fund
So what is unique about this Motilal Oswal MOSt Shares Gold ETF - this is the one and only Gold ETF which allows investors an option to actually take physical delivery of gold at the time of redemption of the Gold ETF units. That means, I as a investor of Motilal Oswal MOSt Shares Gold ETF purchase the gold ETF units. Say I hold it for few months and now I want to redeem my ETF units. I have 2 options:
1) I can simple sell back my Gold ETF units and get money back at the effective price of my units
2) I can actually ask for physical gold (i.e. the gold bar) instead of taking the money
This is the only Gold ETF in India which is offering this kind of physical gold delivery and this is what sets it apart.
What are the other competitor products available in comparison to Motilal Oswal MOSt Shares Gold ETF?
If not hundred, then nothing less than that are available in terms of Gold ETF's and gold saving funds. Check out the complete list
- All Gold ETF's
- All Gold Saving Funds
What are the risks of investing and trading Motilal Oswal MOSt Shares Gold ETF?
Obviously, you are taking a bet on the gold prices. If the gold prices go down after you invest in this Gold ETF, your investment might suffer a loss. It will not matter whether you have the option of physical gold redemption or money redemption. This risk is borne by the investor.
Another thing is that this Motilal Oswal MOSt Shares Gold ETF requries a minimum investment of Rs. 10000, while other Gold funds and gold saving funds are offering investments for much lower amounts.
Final Thoughts about Motilal Oswal MOSt Shares Gold ETF?
Overall, it is another Gold based ETF. Option of physical gold redemption is good but think about it - why would an investor go for physical gold redemption? Only if he needs the physical gold - say for marriage in the family or similar occassion. And what will he do after getting the physical gold which is in minimum 10 gm gold bar units? He will have to anyways approach the jeweller to convert this gold bar into jewellery.
So overall - option of physical redemtion looks good, but investors need to take a call on its usability as per their own needs.
See List of All Mutual Fund and NFO Articles here
RiddiSiddhi Bullions (RSBL) will be providing the Gold bars for physical redemption, but the redemption will actually happen with T+5 days settlement cycle in case of physical gold redemption - i.e. one needs to wait for 5 days to actually receive the gold bars. Also note that physical delivery is limited to only 22 cities in India as of now, so rest city investors need to keep this in mind. They should check how the physical gold will be made available to them if they reside in other cities.
This ETF will be listed both on NSE and BSE.
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 10,000 and in multiples of Re 1 afterwards.
Tax benefit will NOT be available in Motilal Oswal MOSt Shares Gold ETF.
The Motilal Oswal MOSt Shares Gold ETF also claims that it offers discount as compared to gold spot prices. There is no wealth tax for Motilal Oswal MOSt Shares Gold ETF.
Wednesday, 16 November 2011
Religare Gold Fund NFO: Review Analysis & Details
Details about Religare Gold Fund: Review, Analysis, Details & Investment Opinion.
There comes another so-called "Gold Fund" from a new mutual fund house. Everyone is hopping on Gold for their investments so the mutual fund houses are going on launching Gold funds one after the other in the already over-flooded market. Just search for Gold Fund using the search box on this site and you can see how flooded the market currently is.
In this article, we will analyze how good is this Religare Gold Fund NFO, whether this Religare Gold Fund offers anything new or unique for the investors and whether the investors should invest in Religare Gold Fund.
What are the NFO dates for Religare Gold Fund?
The NFO period for Religare Gold Fund is from 15 November and will close on 29 November 2011. After the NFO period, the regular buying and redemption of fund units will start. This will be a passively managed fund of funds (What's this?) or better to say fund of a single fund.
What is so unique about this Religare Gold Fund?
Nothing - absolutely nothing is unique in this Godl fund. Like any other Gold fund or Gold saving fund already available in the market, the Religare fund managers will collect money from the investors, and invest that into their own Gold based ETF called Religare Gold ETF or Religare Gold Exchange Traded Fund.
The benefit these kind of investments claim to offer is no requirement for a demat account, exposure to gold in small amounts of investments, easy SIP facility and so on. However, if you are reading this article on a computer, that means you are computer savvy and with a good probability you will have a demat account. Anyways, see the next section on why this Religare Gold Fund is not unique.
What are the other competitor products available in comparison to Religare Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Religare Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
HDFC has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.
Other Gold Schemes: Quantum Gold Fund
What are the risks of investing and trading Religare Gold Fund?
The benchmark for Religare Gold Fund is the physical price of gold. Since this is a fund of fund, it will be the Religare Gold ETF which is expected to track the gold prices and then those End of the prices will be reflected in the returns of this Religare Godl Fund. Being an End of the Day pricing product, the fund manager will attempt to give similar returns like the tracking gold price but the tracking error will surely creep in.
Final Thoughts about Religare Gold Fund?
Another Fund of Funds in the Gold investment arena, nothing new compared to what other Gold funds or Gold Saving Funds (already available in the market ) are offering. This fund just adds to the list and gives investors more choice of investment in Gold through a new fund house.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.
Tax benefit will NOT be available in Religare Gold Fund.
Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities
Religare Gold Fund Entry Load:
Religare Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.
SIP or systematic investment plan? Yes. Minimum SIP tenure is 6 months, with minimum SIP amount of Rs. 1000 and in multiples of Re. 1 thereafter.
Physical Gold Prices in India will be the benchmark for tracking the performance of Religare Gold Fund
Mr. Nitish Sikand will be the fund manager for Religare Gold Fund
There comes another so-called "Gold Fund" from a new mutual fund house. Everyone is hopping on Gold for their investments so the mutual fund houses are going on launching Gold funds one after the other in the already over-flooded market. Just search for Gold Fund using the search box on this site and you can see how flooded the market currently is.
In this article, we will analyze how good is this Religare Gold Fund NFO, whether this Religare Gold Fund offers anything new or unique for the investors and whether the investors should invest in Religare Gold Fund.
Religare Gold Fund NFO: Review Analysis & Details
Let's begin with some basic details about Religare Gold Fund.What are the NFO dates for Religare Gold Fund?
The NFO period for Religare Gold Fund is from 15 November and will close on 29 November 2011. After the NFO period, the regular buying and redemption of fund units will start. This will be a passively managed fund of funds (What's this?) or better to say fund of a single fund.
What is so unique about this Religare Gold Fund?
Nothing - absolutely nothing is unique in this Godl fund. Like any other Gold fund or Gold saving fund already available in the market, the Religare fund managers will collect money from the investors, and invest that into their own Gold based ETF called Religare Gold ETF or Religare Gold Exchange Traded Fund.
The benefit these kind of investments claim to offer is no requirement for a demat account, exposure to gold in small amounts of investments, easy SIP facility and so on. However, if you are reading this article on a computer, that means you are computer savvy and with a good probability you will have a demat account. Anyways, see the next section on why this Religare Gold Fund is not unique.
What are the other competitor products available in comparison to Religare Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Religare Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
HDFC has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.
Other Gold Schemes: Quantum Gold Fund
What are the risks of investing and trading Religare Gold Fund?
The benchmark for Religare Gold Fund is the physical price of gold. Since this is a fund of fund, it will be the Religare Gold ETF which is expected to track the gold prices and then those End of the prices will be reflected in the returns of this Religare Godl Fund. Being an End of the Day pricing product, the fund manager will attempt to give similar returns like the tracking gold price but the tracking error will surely creep in.
Final Thoughts about Religare Gold Fund?
Another Fund of Funds in the Gold investment arena, nothing new compared to what other Gold funds or Gold Saving Funds (already available in the market ) are offering. This fund just adds to the list and gives investors more choice of investment in Gold through a new fund house.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.
Tax benefit will NOT be available in Religare Gold Fund.
Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities
Religare Gold Fund Entry Load:
Religare Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.
SIP or systematic investment plan? Yes. Minimum SIP tenure is 6 months, with minimum SIP amount of Rs. 1000 and in multiples of Re. 1 thereafter.
Physical Gold Prices in India will be the benchmark for tracking the performance of Religare Gold Fund
Mr. Nitish Sikand will be the fund manager for Religare Gold Fund
Monday, 10 October 2011
HDFC Gold Fund NFO: Review Analysis & Details
Details about HDFC Gold Fund: Review, Analysis, Details & Investment Opinion.
High on the heals of recently launched Gold funds like ICICI Gold Savings Fund and Axis Gold Fund, another renowned mutual fund house, HDFC Mutual Fund house, has joined the bandwagon of so called Gold Saving Funds and come out with a new fund offer or NFO, for its newly launched fund called HDFC Gold Fund
Looking at the flood of these Gold based Funds coming in the market in the recent times, we've been feeling a bit tired to write about them one after the other :-), but looks like the mutual fund houses are tired in bringing the same products which works in the same way as other similar products from other fund houses, again and again in the market. Who doesnt like to get a share when the entire world is going crazy with gold prices highs (and recent lows). Dollar isn't looking good, Gold looks promising, add some "saving fund" terminology, pitch in for investors to go with small amounts of SIP and there you have a new Gold Based Fund.
The HDFC Mutual Fund House is launching their HDFC Gold Fund. In this article, we will analyze how good is this HDFC Gold Fund NFO, whether this HDFC Gold Fund offers anything new or unique for the investors and whether the investors should invest in HDFC Gold Fund.
What are the NFO dates for HDFC Gold Fund?
The NFO period for HDFC Gold Fund is from 7th October and will close on 21 October 2011. After the NFO period, the regular buying and redemption of fund units will start, on date still not known by us.
What is so unique about this HDFC Gold Fund?
Nothing special, if you are already aware of exactly the similar products available and being flooded in the market since last many months by various fund houses. The concept is simple - Mutual Fund houses have a product called a "Gold ETF". On top of that, they lauch another product called a "Gold Fund". What then happens is that money invested through this Gold fund is actually routed to Gold ETF. The Gold ETF prices keep moving as per the prices of actual physical gold and hence the returns of this Gold fund also keeps moving. So, in essence, this is actually a Fund of Fund (What's this?). What it means is that this fund will not invest in any Gold companies or Gold stocks diectly, instead it will invest in other fund, Called HDFC Gold ETF or Exchange Traded Fund. It is this ETF which will actually invest in physical gold.
Now, we've written a lot about these so called "Gold Funds" or "Gold Savings Funds".
They offer low amount investments in gold (although this HDFC Gold Fund requires minimum 5000 Rs. investment, other Gold Funds need only Rs. 100). They do not require demat account, etc. SIP requries only 500 Rs. per month and 1500 per quarter for a quarterly SIP.
But they do come with disadvantages like you cannot trade in them on real time basis as this pricing in based on End of the day NAV kind of model. See more articles in next section about competitor products to better understand this gold fund business.
What are the other competitor products available in comparison to HDFC Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to HDFC Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
HDFC itself has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.
Other Gold Schemes: Quantum Gold Fund
What are the risks of investing and trading HDFC Gold Fund?
The benchmark for HDFC Gold Fund is the Domestic Price of Gold. By investing in such a fund, you are taking the risk on gold price fluctuations. If the price of gold fluctuates, so will the returns from this fund will change.
Also, since this is fund of (single) fund, the tracking error will surely creep in - although it will be based on end of the day pricing.
Final Thoughts about HDFC Gold Fund?
Another Gold Fund or Gold Saving fund offering investments in gold which are similar to the so many different products already available in the market. One can go for investment in this HDFC Gold Fund if they believe that gold prices will continue to rise and trust Axis fund managers to generate accurate returns on gold prices with minimal tracking error.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in HDFC Gold Fund. There is no lock-in period for this Gold Fund i.e. investors can enter and exit anytime they like, but they need to pay exit load charges as mentioned.
Mr. Anil Bamboli will be the fund manager for HDFC Gold Fund.
Only Growth Option is available for HDFC Gold Fund.
HDFC Gold Fund Entry Load: Nil
HDFC Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.
SIP or systematic investment plan? Yes.
Minimum SIP is Rs. 500 per month and Rs. 1500 per quarter and further in multiples of Rs. 100 per month.
Domestic Price of Gold will be the benchmark for tracking the performance of HDFC Gold Fund
High on the heals of recently launched Gold funds like ICICI Gold Savings Fund and Axis Gold Fund, another renowned mutual fund house, HDFC Mutual Fund house, has joined the bandwagon of so called Gold Saving Funds and come out with a new fund offer or NFO, for its newly launched fund called HDFC Gold Fund
Looking at the flood of these Gold based Funds coming in the market in the recent times, we've been feeling a bit tired to write about them one after the other :-), but looks like the mutual fund houses are tired in bringing the same products which works in the same way as other similar products from other fund houses, again and again in the market. Who doesnt like to get a share when the entire world is going crazy with gold prices highs (and recent lows). Dollar isn't looking good, Gold looks promising, add some "saving fund" terminology, pitch in for investors to go with small amounts of SIP and there you have a new Gold Based Fund.
The HDFC Mutual Fund House is launching their HDFC Gold Fund. In this article, we will analyze how good is this HDFC Gold Fund NFO, whether this HDFC Gold Fund offers anything new or unique for the investors and whether the investors should invest in HDFC Gold Fund.
HDFC Gold Fund NFO: Review Analysis & Details
Let's begin with some basic details about HDFC Gold Fund.What are the NFO dates for HDFC Gold Fund?
The NFO period for HDFC Gold Fund is from 7th October and will close on 21 October 2011. After the NFO period, the regular buying and redemption of fund units will start, on date still not known by us.
What is so unique about this HDFC Gold Fund?
Nothing special, if you are already aware of exactly the similar products available and being flooded in the market since last many months by various fund houses. The concept is simple - Mutual Fund houses have a product called a "Gold ETF". On top of that, they lauch another product called a "Gold Fund". What then happens is that money invested through this Gold fund is actually routed to Gold ETF. The Gold ETF prices keep moving as per the prices of actual physical gold and hence the returns of this Gold fund also keeps moving. So, in essence, this is actually a Fund of Fund (What's this?). What it means is that this fund will not invest in any Gold companies or Gold stocks diectly, instead it will invest in other fund, Called HDFC Gold ETF or Exchange Traded Fund. It is this ETF which will actually invest in physical gold.
Now, we've written a lot about these so called "Gold Funds" or "Gold Savings Funds".
They offer low amount investments in gold (although this HDFC Gold Fund requires minimum 5000 Rs. investment, other Gold Funds need only Rs. 100). They do not require demat account, etc. SIP requries only 500 Rs. per month and 1500 per quarter for a quarterly SIP.
But they do come with disadvantages like you cannot trade in them on real time basis as this pricing in based on End of the day NAV kind of model. See more articles in next section about competitor products to better understand this gold fund business.
What are the other competitor products available in comparison to HDFC Gold Fund?
The list is endless. Hardly anything looks different. The recently lauched Axis Gold Fund, then the ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to HDFC Gold Fund.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
HDFC itself has its own ETF: HDFC Gold ETF NFO: Review Analysis & Details apart from others like Quantum Gold Fund (Gold ETF) ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme and so on.
Other Gold Schemes: Quantum Gold Fund
What are the risks of investing and trading HDFC Gold Fund?
The benchmark for HDFC Gold Fund is the Domestic Price of Gold. By investing in such a fund, you are taking the risk on gold price fluctuations. If the price of gold fluctuates, so will the returns from this fund will change.
Also, since this is fund of (single) fund, the tracking error will surely creep in - although it will be based on end of the day pricing.
Final Thoughts about HDFC Gold Fund?
Another Gold Fund or Gold Saving fund offering investments in gold which are similar to the so many different products already available in the market. One can go for investment in this HDFC Gold Fund if they believe that gold prices will continue to rise and trust Axis fund managers to generate accurate returns on gold prices with minimal tracking error.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in HDFC Gold Fund. There is no lock-in period for this Gold Fund i.e. investors can enter and exit anytime they like, but they need to pay exit load charges as mentioned.
Mr. Anil Bamboli will be the fund manager for HDFC Gold Fund.
Only Growth Option is available for HDFC Gold Fund.
HDFC Gold Fund Entry Load: Nil
HDFC Gold Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.
SIP or systematic investment plan? Yes.
Minimum SIP is Rs. 500 per month and Rs. 1500 per quarter and further in multiples of Rs. 100 per month.
Domestic Price of Gold will be the benchmark for tracking the performance of HDFC Gold Fund
Tuesday, 4 October 2011
Axis Gold Fund NFO: Review Analysis & Details
Details about Axis Gold Fund: Review, Analysis, Details & Investment Opinion.
Another renowned mutual fund house, Axis Mutual Fund house, has joined the bandwagon of so called Gold Saving Funds and come out with a new fund offer or NFO, for its newly launched fund called Axis Gold Fund
The Axis Mutual Fund House is launching their Axis Gold Fund. In this article, we will analyze how good is this Axis Gold Fund NFO, whether this Axis Gold Fund offers anything new or unique for the investors and whether the investors should invest in Axis Gold Fund.
What are the NFO dates for Axis Gold Fund?
The NFO period for Axis Gold Fund is from 30 September and will close on 14 October 2011. After the NFO period, the regular buying and redemption of fund units will start, on date 28th October 2011.
What is so unique about this Axis Gold Fund?
Investors should undestand this very clearly that this is actually a Fund of Fund (What's this?). What it means is that this fund will not invest in any Gold companies or Gold stocks diectly, instead it will invest in other fund, Called Axis Gold ETF or Exchange Traded Fund. It is this ETF which will actually invest in physical gold.
What this Axis Gold Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in Axis Gold Exchange Traded Fund - the Gold ETF from Axis MF.
Now, we've written a lot about these so called "Gold Funds" or "Gold Savings Funds".
They offer low amount investments in gold (although this Axis Gold Fund requires minimum 1000 Rs. investment, other Gold Funds need only Rs. 100). They do not require demat account, etc.
But they do come with disadvantages like you cannot trade in them on real time basis as this pricing in based on End of the day NAV kind of model. See more articles in next section about competitor products to better understand this gold fund business.
What are the other competitor products available in comparison to Axis Gold Fund?
The recently lauched ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Axis Gold Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes: Quantum Gold Fund
What are the risks of investing and trading Axis Gold Fund?
The benchmark for Axis Gold Fund is the Domestic Price of Gold. By investing in such a fund, you are taking the risk on gold price fluctuations. If the price of gold fluctuates, so will the returns from this fund will change.
Also, since this is fund of (single) fund, the tracking error will surely creep in - although it will be based on end of the day pricing.
Final Thoughts about Axis Gold Fund?
Another Gold Fund or Gold Saving fund offering investments in gold which are similar to the so many different products already available in the market. One can go for investment in this Axis Gold fund if they believe that gold prices will continue to rise and trust Axis fund managers to generate accurate returns on gold prices with minimal tracking error.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in Axis Gold Fund
Mr. Anurag Mittal will be the fund manager for Axis Gold Fund.
Multiple options available for investments in Axis Gold Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
Axis Gold Fund Entry Load: Nil
Axis Gold Fund Exit Load: 1% if exit within 1 year
NIL beyond 1 year.
SIP or systematic investment plan? Yes.
Minimum SIP is Rs. 1,000 and in multiples of Re. 1 per month. However, a minimum SIP of 36 months or 3 years is required.
Domestic Price of Gold will be the benchmark for tracking the performance of Axis Gold Fund
Another renowned mutual fund house, Axis Mutual Fund house, has joined the bandwagon of so called Gold Saving Funds and come out with a new fund offer or NFO, for its newly launched fund called Axis Gold Fund
The Axis Mutual Fund House is launching their Axis Gold Fund. In this article, we will analyze how good is this Axis Gold Fund NFO, whether this Axis Gold Fund offers anything new or unique for the investors and whether the investors should invest in Axis Gold Fund.
Axis Gold Fund NFO: Review Analysis & Details
Let's begin with some basic details about Axis Gold Fund.What are the NFO dates for Axis Gold Fund?
The NFO period for Axis Gold Fund is from 30 September and will close on 14 October 2011. After the NFO period, the regular buying and redemption of fund units will start, on date 28th October 2011.
What is so unique about this Axis Gold Fund?
Investors should undestand this very clearly that this is actually a Fund of Fund (What's this?). What it means is that this fund will not invest in any Gold companies or Gold stocks diectly, instead it will invest in other fund, Called Axis Gold ETF or Exchange Traded Fund. It is this ETF which will actually invest in physical gold.
What this Axis Gold Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in Axis Gold Exchange Traded Fund - the Gold ETF from Axis MF.
Now, we've written a lot about these so called "Gold Funds" or "Gold Savings Funds".
They offer low amount investments in gold (although this Axis Gold Fund requires minimum 1000 Rs. investment, other Gold Funds need only Rs. 100). They do not require demat account, etc.
But they do come with disadvantages like you cannot trade in them on real time basis as this pricing in based on End of the day NAV kind of model. See more articles in next section about competitor products to better understand this gold fund business.
What are the other competitor products available in comparison to Axis Gold Fund?
The recently lauched ICICI Gold Savings Fund, SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to Axis Gold Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes: Quantum Gold Fund
What are the risks of investing and trading Axis Gold Fund?
The benchmark for Axis Gold Fund is the Domestic Price of Gold. By investing in such a fund, you are taking the risk on gold price fluctuations. If the price of gold fluctuates, so will the returns from this fund will change.
Also, since this is fund of (single) fund, the tracking error will surely creep in - although it will be based on end of the day pricing.
Final Thoughts about Axis Gold Fund?
Another Gold Fund or Gold Saving fund offering investments in gold which are similar to the so many different products already available in the market. One can go for investment in this Axis Gold fund if they believe that gold prices will continue to rise and trust Axis fund managers to generate accurate returns on gold prices with minimal tracking error.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in Axis Gold Fund
Mr. Anurag Mittal will be the fund manager for Axis Gold Fund.
Multiple options available for investments in Axis Gold Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
Axis Gold Fund Entry Load: Nil
Axis Gold Fund Exit Load: 1% if exit within 1 year
NIL beyond 1 year.
SIP or systematic investment plan? Yes.
Minimum SIP is Rs. 1,000 and in multiples of Re. 1 per month. However, a minimum SIP of 36 months or 3 years is required.
Domestic Price of Gold will be the benchmark for tracking the performance of Axis Gold Fund
Tuesday, 27 September 2011
ICICI Gold Savings Fund NFO: Review Analysis & Details
Details about ICICI Prudential Regular Gold Savings Fund: Review, Analysis, Details & Investment Opinion. Gold, Silver, Precious metals are appearing to be the most sought after commodities. With the high volatility in the USD exchagne rates as well as that in the crude oil prices, the investors, traders as well as the big institutions like the central banks of the world are running for gold to be in their reserves. Right from common man to big central banks, everyone has been dancing to the tunes of Gold investments, and so the prices have gold have shot up the roof in last 5 years. However, one must not forget what happened in last 2 days. Gold prices have tanked down with the biggest intra day fall again raising the speculation that is going on in gold and silver.
India, being one of the biggest consumers of gold, has a big festive season ahead and asset management companies are trying to attract the investors to get into gold products with an assurance that gold prices have given good returns in the past so investors must invest in gold products. Already, there were lot of gold products in the market, the most recent one was SBI Gold Fund and now ICICI Prudential MF AMC has come out with so called
ICICI Prudential Regular Gold Savings Fund. I still have objection to the use of word "Savings" because there is no guarantee of positive returns, but that's something the investors should note and be careful about.
The ICICI Mutual Fund House is launching their ICICI Gold Savings Fund. In this article, we will analyze how good is this ICICI Gold Savings Fund NFO, whether this ICICI Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in
ICICI Gold Savings Fund.
What are the NFO dates for ICICI Prudential Regular Gold Savings Fund? The NFO period for ICICI Gold Savings Fund is currently open and will close on 4 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.
What is so unique about this ICICI Gold Savings Fund? Investors and traders would know that there is a Gold ETF already available in the market from ICICI MF, it is
ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF). What this
ICICI Gold Savings Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in ICICI Prudential Gold Exchange Traded Fund - the Gold ETF from ICICI MF.
So, this new Gold Fund from ICICI will work exactly the way the Reliance Gold Savings Fund (See Review & Details), SBI Gold Fund and Kotak Gold Savings Fund works. They too pool in money from investors, and invest in their own respective Gold ETF's.
In my honest opinion, I dont see any special benefits of such Gold Funds or Gold Savings Funds - (SBI has been good atleast not to use the word SAVINGS in their product, which I was not happy about with Reliance, Kotak and now with ICICI). My take is that it is much easier for investors to directly invest in Gold ETF's rather than going through the Fund route.
However, there are a few advantages of these so called Gold (Savings) Fund. They allow you to invest in small amounts. You dont need to worry about the intra-day high low prices of Gold ETF or similar products with intra day trading. One does not need to have demat account which is mandatory in case of Gold ETF.
At the same time, the above advantages come with disadvantages - you cannot benefit from intra-day price movements (but is that required? you are inevsting in this gold fund for long term saving purpose), you pay fund management charges (you pay brokerage to broker for Gold ETF trading) and son on.
Although the investment objective of the ICICI Gold Savings Fund is to generate returns similar to ICICI Gold ETF, I wonder what actually this fund is going to really do instead of just being a channel to route investor's money into their own Gold ETF.
What are the other competitor products available in comparison to ICICI Gold Savings Fund? The recently lauched SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to ICICI Gold Savings Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available: List of Gold ETF India available for trading on NSE Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes: Quantum Gold Fund
Want to know how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
What are the risks of investing and trading ICICI Gold Savings Fund? The benchmark for this Gold Savings Fund from ICICI is the domestic prices of gold. By investing in such a fund, you are taking the risk on overall Gold price movements. If the Gold prices start going down after you invest in this fund, so will the price of ICICI Gold ETF and hence this ICICI Gold Savings Fund investments values will also go down.
Final Thoughts about ICICI Gold Savings Fund? Nothing special, just another gold based fund adding to the long list of Gold based funds already available in the Indian markets. If you are reading this article, that means you are aware about the computer and demat and things like that (no paper based application), so my advise will be to directly invest in ICICI Gold ETF (or any other Gold ETF) instead of this fund. Let the ICICI Gold Savings Fund be for those who dont want to get into the hassles of demat and such things or for those who are really looking for very small SIP investments like Rs. 100 and so on.
See List of All Mutual Fund and NFO Articles here During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in ICICI Gold Savings Fund
Mr. Chaitanya Pande will be the fund manager for ICICI Gold Savings Fund.
Multiple options available for investments in ICICI Gold Savings Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
ICICI Gold Savings Fund Entry Load: Nil
ICICI Gold Savings Fund Exit Load: 2% if exit within 1 year - this is much higher compared to what SBI Godl Fund and Reliance Gold Savings Fund is charging (they have it at 1%)
NIL beyond 1 year.
SIP or systematic investment plan? Yes with minimum 1000 Rs. - That's again much higher minimum SIP amount requried. Reliance and SBI are offering minimum SIP at 100 Rs.
Domestic Price of physical gold will be the benchmark for tracking the performance of ICICI Gold Savings Fund
India, being one of the biggest consumers of gold, has a big festive season ahead and asset management companies are trying to attract the investors to get into gold products with an assurance that gold prices have given good returns in the past so investors must invest in gold products. Already, there were lot of gold products in the market, the most recent one was SBI Gold Fund and now ICICI Prudential MF AMC has come out with so called
ICICI Prudential Regular Gold Savings Fund. I still have objection to the use of word "Savings" because there is no guarantee of positive returns, but that's something the investors should note and be careful about.
The ICICI Mutual Fund House is launching their ICICI Gold Savings Fund. In this article, we will analyze how good is this ICICI Gold Savings Fund NFO, whether this ICICI Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in
ICICI Gold Savings Fund.
ICICI Prudential Regular Gold Savings Fund NFO: Review Analysis & Details
Let's begin with some basic details about ICICI Gold Savings Fund.What are the NFO dates for ICICI Prudential Regular Gold Savings Fund? The NFO period for ICICI Gold Savings Fund is currently open and will close on 4 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.
What is so unique about this ICICI Gold Savings Fund? Investors and traders would know that there is a Gold ETF already available in the market from ICICI MF, it is
ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF). What this
ICICI Gold Savings Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in ICICI Prudential Gold Exchange Traded Fund - the Gold ETF from ICICI MF.
So, this new Gold Fund from ICICI will work exactly the way the Reliance Gold Savings Fund (See Review & Details), SBI Gold Fund and Kotak Gold Savings Fund works. They too pool in money from investors, and invest in their own respective Gold ETF's.
In my honest opinion, I dont see any special benefits of such Gold Funds or Gold Savings Funds - (SBI has been good atleast not to use the word SAVINGS in their product, which I was not happy about with Reliance, Kotak and now with ICICI). My take is that it is much easier for investors to directly invest in Gold ETF's rather than going through the Fund route.
However, there are a few advantages of these so called Gold (Savings) Fund. They allow you to invest in small amounts. You dont need to worry about the intra-day high low prices of Gold ETF or similar products with intra day trading. One does not need to have demat account which is mandatory in case of Gold ETF.
At the same time, the above advantages come with disadvantages - you cannot benefit from intra-day price movements (but is that required? you are inevsting in this gold fund for long term saving purpose), you pay fund management charges (you pay brokerage to broker for Gold ETF trading) and son on.
Although the investment objective of the ICICI Gold Savings Fund is to generate returns similar to ICICI Gold ETF, I wonder what actually this fund is going to really do instead of just being a channel to route investor's money into their own Gold ETF.
What are the other competitor products available in comparison to ICICI Gold Savings Fund? The recently lauched SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to ICICI Gold Savings Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available: List of Gold ETF India available for trading on NSE Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes: Quantum Gold Fund
Want to know how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
What are the risks of investing and trading ICICI Gold Savings Fund? The benchmark for this Gold Savings Fund from ICICI is the domestic prices of gold. By investing in such a fund, you are taking the risk on overall Gold price movements. If the Gold prices start going down after you invest in this fund, so will the price of ICICI Gold ETF and hence this ICICI Gold Savings Fund investments values will also go down.
Final Thoughts about ICICI Gold Savings Fund? Nothing special, just another gold based fund adding to the long list of Gold based funds already available in the Indian markets. If you are reading this article, that means you are aware about the computer and demat and things like that (no paper based application), so my advise will be to directly invest in ICICI Gold ETF (or any other Gold ETF) instead of this fund. Let the ICICI Gold Savings Fund be for those who dont want to get into the hassles of demat and such things or for those who are really looking for very small SIP investments like Rs. 100 and so on.
See List of All Mutual Fund and NFO Articles here During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in ICICI Gold Savings Fund
Mr. Chaitanya Pande will be the fund manager for ICICI Gold Savings Fund.
Multiple options available for investments in ICICI Gold Savings Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
ICICI Gold Savings Fund Entry Load: Nil
ICICI Gold Savings Fund Exit Load: 2% if exit within 1 year - this is much higher compared to what SBI Godl Fund and Reliance Gold Savings Fund is charging (they have it at 1%)
NIL beyond 1 year.
SIP or systematic investment plan? Yes with minimum 1000 Rs. - That's again much higher minimum SIP amount requried. Reliance and SBI are offering minimum SIP at 100 Rs.
Domestic Price of physical gold will be the benchmark for tracking the performance of ICICI Gold Savings Fund
Monday, 22 August 2011
SBI Gold Fund NFO: Review Analysis & Details
Details about SBI Gold Fund: Review, Analysis, Details & Investment Opinion.
Gold, Gold, Gold - The world is going crazy with the Gold prices shooting up the roof with every single passing day. In India, several Gold Based products and ETF's are already available for investments and trading, yet many fund houses are coming with Gold based products to catch in this hike in gold prices. With Festive season ahead followed by marriage season, the gold demand in India is set to increase further.
The SBI Mutual Fund House is launching their SBI Gold Fund. In this article, we will analyze how good is this SBI Gold Fund NFO, whether this SBI Gold Fund offers anything new or unique for the investors and whether the investors should invest in SBI Gold Fund.
What are the NFO dates for SBI Gold Fund?
The NFO period for SBI Gold Fund is currently open (from 22 August 2011) and will close on 5 September 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.
What is so unique about this SBI Gold Fund?
Investors and traders would know that there is a Gold ETF already available in the market from SBI MF, it is SBI GETS-SBI Gold ETF . What this SBI Gold Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in SBI GETS - the Gold ETF from SBI MF.
So, this new Gold Fund from SBI will work exactly the way the Reliance Gold Savings Fund (See Review & Details) and Kotak Gold Savings Fund works. They too pool in money from investors, and invest in their own respective Gold ETF's.
In my honest opinion, I dont see any special benefits of such Gold Funds or Gold Savings Funds - (SBI has been good atleast not to use the word SAVINGS in their product, which I was not happy about with Reliance and Kotak). My take is that it is much easier for investors to directly invest in Gold ETF's rather than going through the Fund route.
The only advantage I see here is that the minimum investment amount is Rs. 100 and no demat account is required - and this might be the USP's for these Gold Funds or Gold "Saving" Funds - their target customers are those who are not (demat) computer savvy, do not understand demat-and all and are happy with investing small sums of money through paper applications.
Although the investment objective of the SBI Gold Fund is to generate returns similar to SBI Gold ETF, I wonder what actually this fund is going to really do instead of just being a channel to route investor's money into their own Gold ETF.
What are the other competitor products available in comparison to SBI Gold Fund?
The recently lauched Reliance Gold Savings Fund (See Review & Details) is the biggest and direct competitor to SBI Gold Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes Currently Open: Quantum Gold Fund
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
What are the risks of investing and trading SBI Gold Fund?
By investing in such a fund, you are taking the risk on overall Gold prices. If the Gold prices start going down, so will the price of SBI GETS Gold ETF and hence this SBI Gold Fund investments will suffer.
Final Thoughts about SBI Gold Fund?
Nothing special, just another fun adding to the long list of Gold based funds already available in the Indian markets. If you are reading this article, that means you are aware about the computer and demat and things like that (no paper based application), so my advise will be to directly invest in SBI GETS ETF instead of this fund. Let the SBI Gold Fund be for those who dont want to get into the hassles of demat and such things or for those who are really looking for very small SIP investments like Rs. 100 and so on.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in SBI Gold Fund
Mr. Raviprakash Sharma will be the fund manager for SBI Gold Fund.
Multiple options available for investments in SBI Gold Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
SBI Gold Fund Entry Load: Nil
SBI Gold Fund Exit Load: 1% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan? Yes with minimum 100 Rs. - that's what they are betting on.
Price of physical gold will be the benchmark for tracking the performance of SBI Gold Fund
Gold, Gold, Gold - The world is going crazy with the Gold prices shooting up the roof with every single passing day. In India, several Gold Based products and ETF's are already available for investments and trading, yet many fund houses are coming with Gold based products to catch in this hike in gold prices. With Festive season ahead followed by marriage season, the gold demand in India is set to increase further.
The SBI Mutual Fund House is launching their SBI Gold Fund. In this article, we will analyze how good is this SBI Gold Fund NFO, whether this SBI Gold Fund offers anything new or unique for the investors and whether the investors should invest in SBI Gold Fund.
SBI Gold Fund NFO: Review Analysis & Details
Let's begin with some basic details about SBI Gold Fund.What are the NFO dates for SBI Gold Fund?
The NFO period for SBI Gold Fund is currently open (from 22 August 2011) and will close on 5 September 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.
What is so unique about this SBI Gold Fund?
Investors and traders would know that there is a Gold ETF already available in the market from SBI MF, it is SBI GETS-SBI Gold ETF . What this SBI Gold Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in SBI GETS - the Gold ETF from SBI MF.
So, this new Gold Fund from SBI will work exactly the way the Reliance Gold Savings Fund (See Review & Details) and Kotak Gold Savings Fund works. They too pool in money from investors, and invest in their own respective Gold ETF's.
In my honest opinion, I dont see any special benefits of such Gold Funds or Gold Savings Funds - (SBI has been good atleast not to use the word SAVINGS in their product, which I was not happy about with Reliance and Kotak). My take is that it is much easier for investors to directly invest in Gold ETF's rather than going through the Fund route.
The only advantage I see here is that the minimum investment amount is Rs. 100 and no demat account is required - and this might be the USP's for these Gold Funds or Gold "Saving" Funds - their target customers are those who are not (demat) computer savvy, do not understand demat-and all and are happy with investing small sums of money through paper applications.
Although the investment objective of the SBI Gold Fund is to generate returns similar to SBI Gold ETF, I wonder what actually this fund is going to really do instead of just being a channel to route investor's money into their own Gold ETF.
What are the other competitor products available in comparison to SBI Gold Fund?
The recently lauched Reliance Gold Savings Fund (See Review & Details) is the biggest and direct competitor to SBI Gold Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes Currently Open: Quantum Gold Fund
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
What are the risks of investing and trading SBI Gold Fund?
By investing in such a fund, you are taking the risk on overall Gold prices. If the Gold prices start going down, so will the price of SBI GETS Gold ETF and hence this SBI Gold Fund investments will suffer.
Final Thoughts about SBI Gold Fund?
Nothing special, just another fun adding to the long list of Gold based funds already available in the Indian markets. If you are reading this article, that means you are aware about the computer and demat and things like that (no paper based application), so my advise will be to directly invest in SBI GETS ETF instead of this fund. Let the SBI Gold Fund be for those who dont want to get into the hassles of demat and such things or for those who are really looking for very small SIP investments like Rs. 100 and so on.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in SBI Gold Fund
Mr. Raviprakash Sharma will be the fund manager for SBI Gold Fund.
Multiple options available for investments in SBI Gold Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
SBI Gold Fund Entry Load: Nil
SBI Gold Fund Exit Load: 1% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan? Yes with minimum 100 Rs. - that's what they are betting on.
Price of physical gold will be the benchmark for tracking the performance of SBI Gold Fund
Wednesday, 4 May 2011
Sundaram Equity Plus Fund-NFO: Review Analysis & Details
Details about Sundaram Equity Plus Fund NFO: Review, Analysis, Details & Opinion.
It was recently that the Birla Sun Life Mutual Fund house came out with its Gold based ETF or Gold Exchange Traded Fund: Birla Sun Life Gold ETF-NFO (See Details), followed by Quantum Gold Savings Fund NFO. Here is another gold based or better to say gold mixed fund from the Sundaram Mutual Fund house called the Sundaram Equity Plus Fund
In this article, we will analyze how good is this Sundaram Equity Plus Fund NFO, whether this Sundaram Equity Plus Fund offers anything new or unique for the investors and whether the investors should invest in Sundaram Equity Plus Fund.
So in a nutsheel, what this Sundaram Equity Plus Fund will do is collect money from investors and put it in Equities as well as Gold. So its a fund where you get a mixed exposure to equities as well as gold. The reason being advertised by Sundaram Equity Plus Fund is that along with equities, gold too is expected to give good returns hence one should go for a mix of the two. The ad also carries some punchlines like "you believe equities will give good returns, while your wife thinks that gold will be better for investment, and hence the Sundaram Equity Plus Fund".
So if you also are in a similar situation :) and trust that Sundaram Equity Plus Fund managers will be able to generate good returns for your money, then this is the fund for you.
What are the NFO dates for Sundaram Equity Plus Fund?
The NFO period for Sundaram Equity Plus Fund is frm 4 May 2011 and will close on 16 May 2011.
What is so unique about this Sundaram Equity Plus Fund?
First and foremost, this fund offers a mix of gold and equities and that's what makes it unique.
It is stated that upto 35% of the money will be invested in Gold based ETF, so that means your invested money will get quite a good exposure to gold.
And that what the word "PLUS" in the name of this fund mean, plus indicates Gold as an additional invested asset, it does not indicate that returns will always be plus or poistive.
On the equities side, the fund claims to keep it exposure to large cap Indian equities and will have around 65% exposure to equities.
Asset Allocation will be as follows:
Equities: 65% to 85%
Gold ETF: 15% to 35%
Debt instruments: 0% to 20%
No tax benefit will be available in Sundaram Equity Plus Fund.
What are the other competitor products available in comparison to Sundaram Equity Plus Fund?
We aren't aware of any Gold and Equity based mutual funds currently avaialble in the market.
However, one can go for a mix bag on his own by selecting a equity based mutual fund and gold ETF. There is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE
Other Gold ETF's include: HDFC Gold ETF: Review Analysis & Details Then there is the Quantum Gold Fund (Gold ETF) and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
What are the risks of investing and trading Sundaram Equity Plus Fund?
First and foremost, you are giving your money to fund managers who will be investing it as per their thought. You run the risk of the fund managers not able to keep up the returns in positive territory.
Second, there is a asset category risk. What if equities or stock market falls? What if Gold prices fall?
Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Final Thoughts about Sundaram Equity Plus Fund?
A good fund for investors who trust the Sundaram fund managers and their investment skills and also believe that both equities and gold will generate positive returns.
This fund provides a good mix of investment in gold and stock market for people who want a mix of both.
During NFO period each unit cost Rs. 10 per unit during NFO period
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.
Multiple options available for investments in Sundaram Equity Plus Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
Sundaram Equity Plus Fund Entry Load: Nil
Sundaram Equity Plus Fund Exit Load: 1% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan? No info available about that.
No tax benefit will be available in Sundaram Equity Plus Fund
It was recently that the Birla Sun Life Mutual Fund house came out with its Gold based ETF or Gold Exchange Traded Fund: Birla Sun Life Gold ETF-NFO (See Details), followed by Quantum Gold Savings Fund NFO. Here is another gold based or better to say gold mixed fund from the Sundaram Mutual Fund house called the Sundaram Equity Plus Fund
In this article, we will analyze how good is this Sundaram Equity Plus Fund NFO, whether this Sundaram Equity Plus Fund offers anything new or unique for the investors and whether the investors should invest in Sundaram Equity Plus Fund.
Sundaram Equity Plus Fund NFO: Review Analysis & Details
Let's begin with some basic details about Sundaram Equity Plus Fund.So in a nutsheel, what this Sundaram Equity Plus Fund will do is collect money from investors and put it in Equities as well as Gold. So its a fund where you get a mixed exposure to equities as well as gold. The reason being advertised by Sundaram Equity Plus Fund is that along with equities, gold too is expected to give good returns hence one should go for a mix of the two. The ad also carries some punchlines like "you believe equities will give good returns, while your wife thinks that gold will be better for investment, and hence the Sundaram Equity Plus Fund".
So if you also are in a similar situation :) and trust that Sundaram Equity Plus Fund managers will be able to generate good returns for your money, then this is the fund for you.
What are the NFO dates for Sundaram Equity Plus Fund?
The NFO period for Sundaram Equity Plus Fund is frm 4 May 2011 and will close on 16 May 2011.
What is so unique about this Sundaram Equity Plus Fund?
First and foremost, this fund offers a mix of gold and equities and that's what makes it unique.
It is stated that upto 35% of the money will be invested in Gold based ETF, so that means your invested money will get quite a good exposure to gold.
And that what the word "PLUS" in the name of this fund mean, plus indicates Gold as an additional invested asset, it does not indicate that returns will always be plus or poistive.
On the equities side, the fund claims to keep it exposure to large cap Indian equities and will have around 65% exposure to equities.
Asset Allocation will be as follows:
Equities: 65% to 85%
Gold ETF: 15% to 35%
Debt instruments: 0% to 20%
No tax benefit will be available in Sundaram Equity Plus Fund.
What are the other competitor products available in comparison to Sundaram Equity Plus Fund?
We aren't aware of any Gold and Equity based mutual funds currently avaialble in the market.
However, one can go for a mix bag on his own by selecting a equity based mutual fund and gold ETF. There is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE
Other Gold ETF's include: HDFC Gold ETF: Review Analysis & Details Then there is the Quantum Gold Fund (Gold ETF) and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
What are the risks of investing and trading Sundaram Equity Plus Fund?
First and foremost, you are giving your money to fund managers who will be investing it as per their thought. You run the risk of the fund managers not able to keep up the returns in positive territory.
Second, there is a asset category risk. What if equities or stock market falls? What if Gold prices fall?
Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Final Thoughts about Sundaram Equity Plus Fund?
A good fund for investors who trust the Sundaram fund managers and their investment skills and also believe that both equities and gold will generate positive returns.
This fund provides a good mix of investment in gold and stock market for people who want a mix of both.
During NFO period each unit cost Rs. 10 per unit during NFO period
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.
Multiple options available for investments in Sundaram Equity Plus Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
Sundaram Equity Plus Fund Entry Load: Nil
Sundaram Equity Plus Fund Exit Load: 1% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan? No info available about that.
No tax benefit will be available in Sundaram Equity Plus Fund
Thursday, 28 April 2011
Quantum Gold Savings Fund-NFO: Review Analysis & Details
Details about Quantum Gold Savings Fund NFO: Review, Analysis, Details & Opinion.
It was recently that the Birla Sun Life Mutual Fund house came out with its Gold based ETF or Gold Exchange Traded Fund: Birla Sun Life Gold ETF-NFO (See Details) and now there seems to be a race among the mutual fund houses to launch Gold based mutual funds, EETF's and Savings Funds. So here is one from the Quantum Mutual Fund house called the Quantum Gold Savings Fund
In this article, we will analyze how good is this Quantum Gold Savings Fund NFO, whether this Quantum Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Quantum Gold Savings Fund.
First thing that you need to understand is that this is NOT a mutual fund, rather it's a fund of fund, or better to say "fund of single fund". Sounds Confusing? But that's what it is.
Basically, what this Quantum Gold Savings Fund will do is take money from individual investors and invest that money in their own Gold based ETF called the Quantum Gold Fund (Gold ETF - QGF). Hence, your invested money will ultimately reach the Gold ETF by Quantum Fund house.
What are the NFO dates for Quantum Gold Savings Fund?
The NFO period for Quantum Gold Savings Fund is currently open and will close on 12 May 2011.
What is so unique about this Quantum Gold Savings Fund?
I dont see anything special about this Quantum Gold Savings Fund. What is the point in creating another fund product in the name of "Savings Fund" when the invested money is to be put in another ETF run by the same fund house?
This being an EOD product, the NAV amounts will be calculated End of the day, while if you directly invest in the Quantum Gold ETF, you can attempt to benefit from the intraday price movements as the ETF tracks the prices of gold all throughout the trading day.
Anyways, on the positive side, this has a low minimum application amount of just Rs. 500, so makes good for small investors who may like to put only small amounts of money in gold in a periodic fashion. But again, why cant the same be done directly in the Gold based ETF?
I also have objections to the name "Savings Fund" - this will track the price of gold. They may go up and might asa well go down. There is no guarantee of assured returns like those offered by regular bank "savings accounts" - like 3.5% interest assured. So why call it a "Savings Fund"?
Anyways, market works in its own ways.
Mr. Chirag Mehta will be the fund manager for this Gold Savings Fund.
The Quantum Gold Savings Fund will be listed on both NSE and BSE post the NFO period.
No tax benefit will be available in Quantum Gold Savings Fund.
What are the other competitor products available in comparison to Quantum Gold Savings Fund?
The two direct competitor products already available in the market are from Reliance and Kotak. Reliance Gold Savings Fund and Quantum Gold Savings Fund-NFO - they work exactly the same way of this Quantum Gold Savings Fund, so investors might like to check them as well.
Other than that, there is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF: Review Analysis & Details
Then there is the Quantum Gold Fund (Gold ETF) which is from the same Quantum mutual fund house and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
What are the risks of investing and trading Quantum Gold Savings Fund?
Since this is directly tracking the prices of Gold in the domestic Indian market, the investor will have to take the risk of decline in the Gold prices. Dont get fooled by the word "Savings fund" as there is no assured returns. By Savings Fund, it is meant that you put your saved money in the fund, but your returns will be subject to market prices of gold which may go up or down. Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.
To udnerstand this, the best way is to look for historical gold prices. If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Another risk comes in from the tracking error. Remember, the fund manager doesn't invest all your money in gold. Only around 95% is invested in gold, while rest is kept in debt instruments and cash holding, so as to take care of creation of new units as per the demand and redemption requests. Hence, there may not be a tick by tick correlation between the Quantum Gold Savings Fund prices and the actual godl prices and hence comes the tracking error.
Final Thoughts about Quantum Gold Savings Fund?
Nothing special - this is just another gold based (savings) fund in India where already many gold etf's are existing.
Quantum Gold Savings Fund Entry Load: Nil
Quantum Gold Savings Fund Exit Load: 1.5% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan is also available.
No tax benefit will be available in Quantum Gold Savings Fund
It was recently that the Birla Sun Life Mutual Fund house came out with its Gold based ETF or Gold Exchange Traded Fund: Birla Sun Life Gold ETF-NFO (See Details) and now there seems to be a race among the mutual fund houses to launch Gold based mutual funds, EETF's and Savings Funds. So here is one from the Quantum Mutual Fund house called the Quantum Gold Savings Fund
In this article, we will analyze how good is this Quantum Gold Savings Fund NFO, whether this Quantum Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Quantum Gold Savings Fund.
Quantum Gold Savings Fund NFO: Review Analysis & Details
Let's begin with some basic details about Quantum Gold Savings Fund.First thing that you need to understand is that this is NOT a mutual fund, rather it's a fund of fund, or better to say "fund of single fund". Sounds Confusing? But that's what it is.
Basically, what this Quantum Gold Savings Fund will do is take money from individual investors and invest that money in their own Gold based ETF called the Quantum Gold Fund (Gold ETF - QGF). Hence, your invested money will ultimately reach the Gold ETF by Quantum Fund house.
What are the NFO dates for Quantum Gold Savings Fund?
The NFO period for Quantum Gold Savings Fund is currently open and will close on 12 May 2011.
What is so unique about this Quantum Gold Savings Fund?
I dont see anything special about this Quantum Gold Savings Fund. What is the point in creating another fund product in the name of "Savings Fund" when the invested money is to be put in another ETF run by the same fund house?
This being an EOD product, the NAV amounts will be calculated End of the day, while if you directly invest in the Quantum Gold ETF, you can attempt to benefit from the intraday price movements as the ETF tracks the prices of gold all throughout the trading day.
Anyways, on the positive side, this has a low minimum application amount of just Rs. 500, so makes good for small investors who may like to put only small amounts of money in gold in a periodic fashion. But again, why cant the same be done directly in the Gold based ETF?
I also have objections to the name "Savings Fund" - this will track the price of gold. They may go up and might asa well go down. There is no guarantee of assured returns like those offered by regular bank "savings accounts" - like 3.5% interest assured. So why call it a "Savings Fund"?
Anyways, market works in its own ways.
Mr. Chirag Mehta will be the fund manager for this Gold Savings Fund.
The Quantum Gold Savings Fund will be listed on both NSE and BSE post the NFO period.
No tax benefit will be available in Quantum Gold Savings Fund.
What are the other competitor products available in comparison to Quantum Gold Savings Fund?
The two direct competitor products already available in the market are from Reliance and Kotak. Reliance Gold Savings Fund and Quantum Gold Savings Fund-NFO - they work exactly the same way of this Quantum Gold Savings Fund, so investors might like to check them as well.
Other than that, there is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF: Review Analysis & Details
Then there is the Quantum Gold Fund (Gold ETF) which is from the same Quantum mutual fund house and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
What are the risks of investing and trading Quantum Gold Savings Fund?
Since this is directly tracking the prices of Gold in the domestic Indian market, the investor will have to take the risk of decline in the Gold prices. Dont get fooled by the word "Savings fund" as there is no assured returns. By Savings Fund, it is meant that you put your saved money in the fund, but your returns will be subject to market prices of gold which may go up or down. Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.
To udnerstand this, the best way is to look for historical gold prices. If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Another risk comes in from the tracking error. Remember, the fund manager doesn't invest all your money in gold. Only around 95% is invested in gold, while rest is kept in debt instruments and cash holding, so as to take care of creation of new units as per the demand and redemption requests. Hence, there may not be a tick by tick correlation between the Quantum Gold Savings Fund prices and the actual godl prices and hence comes the tracking error.
Final Thoughts about Quantum Gold Savings Fund?
Nothing special - this is just another gold based (savings) fund in India where already many gold etf's are existing.
Quantum Gold Savings Fund Entry Load: Nil
Quantum Gold Savings Fund Exit Load: 1.5% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan is also available.
No tax benefit will be available in Quantum Gold Savings Fund
Friday, 22 April 2011
Birla Sun Life Gold ETF-NFO: Review Analysis & Details
Details about Birla Sun Life Gold ETF NFO: Review, Analysis, Details & Opinion.
High on the heels of the other fund houses, the Birla Sun Life Mutual Fund house has also joined the bandwagon and launched its Gold based ETF or Gold Exchange Traded Fund
In this article, we will analyse how good is this Birla Sun Life Gold ETF NFO, whether this Birla Sun Life Gold ETF offers anything new or unique for the investors and whether the investors should invest in Birla Sun Life Gold ETF.
What are the NFO dates for Birla Sun Life Gold ETF?
The NFO period for Birla Sun Life Gold ETF will open on April 25th, 2011 and will close on 9 May 2011.
What is so unique about this Birla Sun Life Gold ETF?
This is another Gold based ETF which is being lauched in the Indian Mutual Fund and ETF market. The Birla Sun Life Gold ETF will track the performance and prices of physical gold in the domestic gold market. Being an ETF or Exchange Traded Fund, this will also given short term traders a good opportunity to trade the tick by tick price movements and benefit.
Anyways, there appears nothing unique about this Birla Sun Life Gold ETF as compared to other Gold based ETF's which are already there in the market.
The minimum application amount for Birla Sun Life Gold ETF is Rs. 6,000 and afterwards in multiples of Rs. 2,000 thereafter.
The face value for each unit of ETF will be Rs. 10.
Mr. Satyabrata Mohanty will be the fund manager for this Gold ETF.
The Birla Sun Life Gold ETF will be listed on both NSE and BSE post the NFO period.
No tax benefit will be available in Birla Sun Life Gold ETF.
What are the other competitor products available in comparison to Birla Sun Life Gold ETF?
There is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Then there is the recently lauched Reliance Gold Savings Fund and Kotak Gold Savings Fund
What are the risks of investing and trading Birla Sun Life Gold ETF?
Since this is directly tracking the prices of Gold in the domestic Indian market, the investor will have to take the risk of decline in the Gold prices. Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.
To udnerstand this, the best way is to look for historical gold prices. If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Another risk comes in from the tracking error. Remember, the fund manager doesn't invest all your money in gold. Only around 95% is invested in gold, while rest is kept in debt instruments and cash holding, so as to take care of creation of new units as per the demand and redemption requests. Hence, there may not be a tick by tick correlation between the Birla Sun Life Gold ETF prices and the actual godl prices and hence comes the tracking error.
Other Gold Schemes Currently Open: Quantum Gold Savings Fund
Final Thoughts about Birla Sun Life Gold ETF?
Nothing special - this is just another gold based ETF in India where already many gold etf's are existing
High on the heels of the other fund houses, the Birla Sun Life Mutual Fund house has also joined the bandwagon and launched its Gold based ETF or Gold Exchange Traded Fund
In this article, we will analyse how good is this Birla Sun Life Gold ETF NFO, whether this Birla Sun Life Gold ETF offers anything new or unique for the investors and whether the investors should invest in Birla Sun Life Gold ETF.
Birla Sun Life Gold ETF NFO: Review Analysis & Details
Let's begin with some basic details about Birla Sun Life Gold ETF.What are the NFO dates for Birla Sun Life Gold ETF?
The NFO period for Birla Sun Life Gold ETF will open on April 25th, 2011 and will close on 9 May 2011.
What is so unique about this Birla Sun Life Gold ETF?
This is another Gold based ETF which is being lauched in the Indian Mutual Fund and ETF market. The Birla Sun Life Gold ETF will track the performance and prices of physical gold in the domestic gold market. Being an ETF or Exchange Traded Fund, this will also given short term traders a good opportunity to trade the tick by tick price movements and benefit.
Anyways, there appears nothing unique about this Birla Sun Life Gold ETF as compared to other Gold based ETF's which are already there in the market.
The minimum application amount for Birla Sun Life Gold ETF is Rs. 6,000 and afterwards in multiples of Rs. 2,000 thereafter.
The face value for each unit of ETF will be Rs. 10.
Mr. Satyabrata Mohanty will be the fund manager for this Gold ETF.
The Birla Sun Life Gold ETF will be listed on both NSE and BSE post the NFO period.
No tax benefit will be available in Birla Sun Life Gold ETF.
What are the other competitor products available in comparison to Birla Sun Life Gold ETF?
There is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Then there is the recently lauched Reliance Gold Savings Fund and Kotak Gold Savings Fund
What are the risks of investing and trading Birla Sun Life Gold ETF?
Since this is directly tracking the prices of Gold in the domestic Indian market, the investor will have to take the risk of decline in the Gold prices. Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.
To udnerstand this, the best way is to look for historical gold prices. If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Another risk comes in from the tracking error. Remember, the fund manager doesn't invest all your money in gold. Only around 95% is invested in gold, while rest is kept in debt instruments and cash holding, so as to take care of creation of new units as per the demand and redemption requests. Hence, there may not be a tick by tick correlation between the Birla Sun Life Gold ETF prices and the actual godl prices and hence comes the tracking error.
Other Gold Schemes Currently Open: Quantum Gold Savings Fund
Final Thoughts about Birla Sun Life Gold ETF?
Nothing special - this is just another gold based ETF in India where already many gold etf's are existing
Thursday, 3 March 2011
Kotak Gold Savings Fund-NFO: Review Analysis & Details of Kotak Gold Savings Fund
This article contains info about Reliance Mutual Fund Gold Savings Fund NFO, Review, Analysis, Details & Opinion. High on the heels of Reliance, Kotak too has come out with almost similar Gold Saving Scheme which appears to be an exact replica of Reliance Gold Savings Fund (See Review & Details). One more NFO or New Fund Offer from another mutual fund house of India - Kotak Mutual Fund - has come through. As the name suggests, this is a fund focussed on Gold as an Investment. I however have a concern with the names of both Reliance Gold Savings Fund and Kotak Gold Savings Fund - a savings fund is suppose to give you sure shot returns - that's the general perception when someone talks about "savings". Savings also (directly or indirectly) implies "Protection of Capital" - again a general perception. However, these two schemes with the name "Gold Savings Fund" appear to be a bit incorrect to me (personal perception) as there is neither a guarantee of returns nor any capital protection. Anyways, market and naming convention work their own way - investors and traders should be careful about what a product is and how it works.
In this article, we will analyse how good is this Kotak Gold Savings Fund NFO, whether this Kotak Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Kotak Gold Savings Fund.
What are the NFO dates for Kotak Gold Savings Fund?
The NFO period for Kotak Gold Savings Fund will open on March 4th, 2011 and will close on 18 March 2011.
What is so unique about this Kotak Gold Savings Fund?
Similar to Reliance Gold Savings Fund, this is another fund of fund kind of scheme and investors must understand this thing very clearly. It's a Gold based Fund of Fund scheme (What's this? Fund of Funds Explained).
However, there is a difference. Usually a fund of fundS invests in many funds (not single one), but like Reliance Gold Savings Fund, this Kotak Gold Savings Fund will invest in single Gold Based ETF from its own fund house. Reliance Gold Savings Fund will invest its money in Reliance Gold ETF and Kotak Gold Savings Fund will invest the money in Kotak Gold ETF. So in essence, they are fund of single funds, which doesn't really make any special sense to me. As mentioned in the final thoughts about Reliance Gold Savings Fund (See Review & Details), I would prefer directly investing in the underlying ETF rather than taking the Fund of (Single) funds route.
What this Kotak Gold Savings Fund will do is it will collect money from common investors, then push that money to invest in the Kotak Gold ETF. This Kotak Gold ETF will then in turn invest your money in physical gold. So your invested money in Kotak Gold Savings Fund will ultimately reach Kotak Gold Exchange Traded Fund.
What are the advantages of this 2 level investment setup in Kotak Gold Savings Fund?
There are a few advantages that Kotak Gold Savings Fund offers which the Kotak Gold ETF does not:
1) The SIP investments in Kotak Gold Savings Fund can be as small as 100 Rs. This appears to be advantegous since you cannot buy physical gold for just Rs. 100. Even the Gold based ETF units will cost more than that. Hence this Kotak Gold Savings Fund offers a good option for small investors who want to invest in gold.
2) You dont need a demat account for Kotak Gold Savings Fund. However, a demat account is necessarily required for Kotak Gold ETF or Reliance Gold ETF. So for investors who are still pen and paper based, this Kotak Gold Savings Fund might be good.
One more thing - if you believe that all your money (100%) will go towards Gold ETF investment, then it is not true. As per the details available, Kotak Gold Savings Fund will invest 90-95% of the money into Kotak Gold ETF, rest 5-10% will be held in Fixed Deposits, and other liquid short term money market instruments for redemption requirements. So there comes the tracking error issue.
The minimum application amount for Kotak Gold Savings Fund is Rs. 5000 and afterwards in multiples of Rs. 1.
Kotak Gold Savings Fund Entry Load: Nil
Kotak Gold Savings Fund Exit Load: 2% if exit within six months; After six months it will be 1%
What are the other competitor products available in comparison to Kotak Gold Savings Fund?
The recently lauched Reliance Gold Savings Fund (See Review & Details) is the biggest and direct competitor to Kotak Gold Savings Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Final Thoughts about Kotak Gold Savings Fund?
I still recommend taking the ETF route, as that offers intra-day price changes and not just the end of the day NAV calculation dependency. However, if investors who still want to apply the pen and paper way, or investors who want SIP with just 100 Rs. monthly investments in gold, they can go for Kotak Gold Savings Fund
In this article, we will analyse how good is this Kotak Gold Savings Fund NFO, whether this Kotak Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Kotak Gold Savings Fund.
Kotak Gold Savings FundNFO: Review Analysis & Details
Let's begin with some basic details about Kotak Gold Savings Fund.What are the NFO dates for Kotak Gold Savings Fund?
The NFO period for Kotak Gold Savings Fund will open on March 4th, 2011 and will close on 18 March 2011.
What is so unique about this Kotak Gold Savings Fund?
Similar to Reliance Gold Savings Fund, this is another fund of fund kind of scheme and investors must understand this thing very clearly. It's a Gold based Fund of Fund scheme (What's this? Fund of Funds Explained).
However, there is a difference. Usually a fund of fundS invests in many funds (not single one), but like Reliance Gold Savings Fund, this Kotak Gold Savings Fund will invest in single Gold Based ETF from its own fund house. Reliance Gold Savings Fund will invest its money in Reliance Gold ETF and Kotak Gold Savings Fund will invest the money in Kotak Gold ETF. So in essence, they are fund of single funds, which doesn't really make any special sense to me. As mentioned in the final thoughts about Reliance Gold Savings Fund (See Review & Details), I would prefer directly investing in the underlying ETF rather than taking the Fund of (Single) funds route.
What this Kotak Gold Savings Fund will do is it will collect money from common investors, then push that money to invest in the Kotak Gold ETF. This Kotak Gold ETF will then in turn invest your money in physical gold. So your invested money in Kotak Gold Savings Fund will ultimately reach Kotak Gold Exchange Traded Fund.
What are the advantages of this 2 level investment setup in Kotak Gold Savings Fund?
There are a few advantages that Kotak Gold Savings Fund offers which the Kotak Gold ETF does not:
1) The SIP investments in Kotak Gold Savings Fund can be as small as 100 Rs. This appears to be advantegous since you cannot buy physical gold for just Rs. 100. Even the Gold based ETF units will cost more than that. Hence this Kotak Gold Savings Fund offers a good option for small investors who want to invest in gold.
2) You dont need a demat account for Kotak Gold Savings Fund. However, a demat account is necessarily required for Kotak Gold ETF or Reliance Gold ETF. So for investors who are still pen and paper based, this Kotak Gold Savings Fund might be good.
One more thing - if you believe that all your money (100%) will go towards Gold ETF investment, then it is not true. As per the details available, Kotak Gold Savings Fund will invest 90-95% of the money into Kotak Gold ETF, rest 5-10% will be held in Fixed Deposits, and other liquid short term money market instruments for redemption requirements. So there comes the tracking error issue.
The minimum application amount for Kotak Gold Savings Fund is Rs. 5000 and afterwards in multiples of Rs. 1.
Kotak Gold Savings Fund Entry Load: Nil
Kotak Gold Savings Fund Exit Load: 2% if exit within six months; After six months it will be 1%
What are the other competitor products available in comparison to Kotak Gold Savings Fund?
The recently lauched Reliance Gold Savings Fund (See Review & Details) is the biggest and direct competitor to Kotak Gold Savings Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Final Thoughts about Kotak Gold Savings Fund?
I still recommend taking the ETF route, as that offers intra-day price changes and not just the end of the day NAV calculation dependency. However, if investors who still want to apply the pen and paper way, or investors who want SIP with just 100 Rs. monthly investments in gold, they can go for Kotak Gold Savings Fund
Tuesday, 15 February 2011
Reliance Gold Savings Fund-NFO: Review Analysis & Details of Reliance Gold Savings Fund
This article contains info about Reliance Mutual Fund Gold Savings FundNFO, Review, Analysis, Details & Opinion. One more NFO or New Fund Offer from one of the largest mutual fund houses of India - Reliance Mutual Fund - has come through. As the name suggests, this is a fund focussed on Gold as an Investment stream. There have been a lot of other Gold Based Investments schemes from other fund houses and now Reliance Mutual Fund has added another product to its portfolio of offerings and this is specific to Gold Investments.
In this article, we will analyse how good is this Reliance Gold Savings Fund NFO, whether this Reliance Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Reliance Gold Savings Fund.
What are the NFO dates for Reliance Gold Savings Fund?
The NFO period for Reliance Gold Savings Fundwill open on February 14th, 2011 and will close on 28th February 2011. So investors interested in applying for this Gold based Fund from Reliance have 14 days.
What is so unique about this Reliance Gold Savings Fund?
Investors must understand this thing very clearly that this is actually a Gold based Fund of Fun scheme (What's this? Fund of Funds Explained).
What this Reliance Gold Savings Fund will do is it will collect money from common investors and instead of buying physical gold, it will actually invest in other Gold Based ETF Funds (like Reliance Gold ETF). This Reliance Gold ETF will then in turn invest your money in physical gold. So your invested money in Reliance Gold Savings Fund will ultimately reach Reliance Gold Exchange Traded Fund.
What's so unique about this kind of 2 level investment setup in Reliance Gold Savings Fund?
Well - these are the claims by the Reliance Gold Savings Fund managers:
1) This Reliance Gold Savings Fund offers SIP investments as little as 100 Rs. This appears to be advantegous since you cannot buy physical gold for just Rs. 100. Even the Gold based ETF units will cost more than that. Hence this Reliance Gold Savings Fund offers a good option for small investors who want to invest in gold.
2) Why invest in ETF? Why not physical gold?
Well - this is a passively managed fund. So what Reliance Mutual Fund is doing is using its already available Gold Based ETF for investment, so that they dont end up offering 2 similar competitive products. An ETF is an ETF - it trades like a stock and prices fluctuate and can go high. Here is an Example of Nifty based ETF. ETF may not be offering you a SIP facility. Hence Reliance Gold Savings Fund is offering a gold based passively managed mutual fund to let investors invest small amounts through SIP in Gold.
This being a mutual fund, it does not require demat account. While for ETF trading, one surely needs demat.
Standard options for investments like any other mutual fund:
Growth and dividend plan. The dividend plan offers dividend payout and reinvestment option.
The minimum application amount for Reliance Gold Savings Fund is Rs. 5000 and afterwards in multiples of Rs. 1.
Reliance Gold Savings Fund Entry Load: Nil
Reliance Gold Savings Fund Exit Load: 2% if exit within 1 year; Nil After one year
However, since this is a fund of fund scheme, there might be ETF expense charges that one needs to you. As per SEBI, this charges can be a maximum of 1.5%. Investors should be aware of this while investing in Reliance Gold Savings Fund.
What are the other competitor products available in comparison to Reliance Gold Savings Fund?
Kotak Gold Savings Fund-NFO: Review - an exact replica of the Reliance Gold Saving Fund - NFO Open from 4th March 2011 to 18th March 2011
There are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Final Thoughts about Reliance Gold Savings Fund?
Being a passively managed Mutual Fund focussed on Gold, that too investment will be only in Reliance Gold ETF, this product might be suitable for investors who just want to dump their money into Gold based products and let the fund managers play with their money. However, still I have the opinion that gold based ETF's - both for long term investments and short term trading - offer a lot better option.
The only good point I see here is that this Reliance Gold Savings Fund offers SIP for a very low amount - which might be effective option for small investors. At the same time, investors should also cross-check the same option for investing in their own SIP investments in available ETF's
In this article, we will analyse how good is this Reliance Gold Savings Fund NFO, whether this Reliance Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Reliance Gold Savings Fund.
Reliance Gold Savings FundNFO: Review Analysis & Details
Let's begin with some basic details about Reliance Gold Savings Fund.What are the NFO dates for Reliance Gold Savings Fund?
The NFO period for Reliance Gold Savings Fundwill open on February 14th, 2011 and will close on 28th February 2011. So investors interested in applying for this Gold based Fund from Reliance have 14 days.
What is so unique about this Reliance Gold Savings Fund?
Investors must understand this thing very clearly that this is actually a Gold based Fund of Fun scheme (What's this? Fund of Funds Explained).
What this Reliance Gold Savings Fund will do is it will collect money from common investors and instead of buying physical gold, it will actually invest in other Gold Based ETF Funds (like Reliance Gold ETF). This Reliance Gold ETF will then in turn invest your money in physical gold. So your invested money in Reliance Gold Savings Fund will ultimately reach Reliance Gold Exchange Traded Fund.
What's so unique about this kind of 2 level investment setup in Reliance Gold Savings Fund?
Well - these are the claims by the Reliance Gold Savings Fund managers:
1) This Reliance Gold Savings Fund offers SIP investments as little as 100 Rs. This appears to be advantegous since you cannot buy physical gold for just Rs. 100. Even the Gold based ETF units will cost more than that. Hence this Reliance Gold Savings Fund offers a good option for small investors who want to invest in gold.
2) Why invest in ETF? Why not physical gold?
Well - this is a passively managed fund. So what Reliance Mutual Fund is doing is using its already available Gold Based ETF for investment, so that they dont end up offering 2 similar competitive products. An ETF is an ETF - it trades like a stock and prices fluctuate and can go high. Here is an Example of Nifty based ETF. ETF may not be offering you a SIP facility. Hence Reliance Gold Savings Fund is offering a gold based passively managed mutual fund to let investors invest small amounts through SIP in Gold.
This being a mutual fund, it does not require demat account. While for ETF trading, one surely needs demat.
Standard options for investments like any other mutual fund:
Growth and dividend plan. The dividend plan offers dividend payout and reinvestment option.
The minimum application amount for Reliance Gold Savings Fund is Rs. 5000 and afterwards in multiples of Rs. 1.
Reliance Gold Savings Fund Entry Load: Nil
Reliance Gold Savings Fund Exit Load: 2% if exit within 1 year; Nil After one year
However, since this is a fund of fund scheme, there might be ETF expense charges that one needs to you. As per SEBI, this charges can be a maximum of 1.5%. Investors should be aware of this while investing in Reliance Gold Savings Fund.
What are the other competitor products available in comparison to Reliance Gold Savings Fund?
Kotak Gold Savings Fund-NFO: Review - an exact replica of the Reliance Gold Saving Fund - NFO Open from 4th March 2011 to 18th March 2011
There are a lot of Gold based ETF's and Gold based Mutual Funds available:
List of Gold ETF India available for trading on NSE
Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF
Final Thoughts about Reliance Gold Savings Fund?
Being a passively managed Mutual Fund focussed on Gold, that too investment will be only in Reliance Gold ETF, this product might be suitable for investors who just want to dump their money into Gold based products and let the fund managers play with their money. However, still I have the opinion that gold based ETF's - both for long term investments and short term trading - offer a lot better option.
The only good point I see here is that this Reliance Gold Savings Fund offers SIP for a very low amount - which might be effective option for small investors. At the same time, investors should also cross-check the same option for investing in their own SIP investments in available ETF's
Thursday, 10 June 2010
Canara Robeco InDiGo Fund NFO: Review Analysis & Details
Another mutual fund house has decided to come out with its NFO or New Fund Offer. The Canara Robeco Mutual Fund House has launched its NFO or New Fund Offer called the Canara Robeco InDiGo Fund NFO
In this article, we will analyse how good is this Canara Robeco InDiGo Fund NFO, whether this Canara Robeco InDiGo Fund offers anything new or unique for the investors and whether the investors should invest in Canara Robeco InDiGo Fund .
What are the NFO dates for Canara Robeco InDiGo Fund ?
The NFO period for Canara Robeco InDiGo Fund is currently open and will close on 15th June 2010.
What is so unique about this Canara Robeco InDiGo Fund?
The Canara Robeco InDiGo Fund is going to invest in two class of securities - Gold ETF's and Debt related money market instruments. The word Gold ETF may make the investors think that it is an aggressive style equity fund, but the Canara Fund house is calling it a debt oriented fund.
The word InDiGo is actually derived from a combination of many terms - INcome from Debt instruments and GOld, so the name INDIGO.
Anyways, going beyind the names, the fund will primarily invest in Gold based ETF's. Here is a list of Gold based ETF's available in India and here is the article about Gold ETF: Historical Performace of Gold ETF in India.
So this Canara Robeco InDiGo Fund will primarily invest the capital collected from investors in the available Gold ETF's and try to generate the returns from the gold based investments. The way this investment returns will be capitalized is to trade or invest in gold etf's based on the seasonal effects like festivals and marriages, when the demand of gold is on the higher side, and so on. However, as an analyst, I seriously doubt that point. Off late, we have seen a lot of fluctuations in gold prices which are not based upon indian festivals and occassions, but by international demand, dollar rupee exchange rate, oil prices and so on. So ultimately, its the fund manager's take on how and when will he be able to capitalize on Gold prices by trading/investing in the gold based ETF's in India.
Some portion of money will also be invested in the debt securities, like the money market instruments. This is for prividing some income in accrued form and for redemption needs. Although I could locate details about what proportion will be invested in Gold ETF's (just 10% to 35%) and how much will go in Debt securities (65% to 90%), going by the advertising which shows and old lady in traditional indian wear weraing loads of gold ornaments, it gives an impression that it will be primarily in Gold, which is not true.
So the Canara Robeco InDiGo Fund will be a good fit for investors who believe in the Gold based story. This fund automatically offers a good diversified mix of gold with some debt securities. So in its way, for the people who just want to go the Mutual Fund way, this fund is something unique. However, as an analyst who knows about the available options in the market, I would like to go for investing in two seperate things - Some more in Gold Based ETF's (list available at the link above) and rest in debt instruments. Just an option which the potential investors might like to consider.
However, if you wish to keep the headaches off and rely on the investment and trading skills of the Canara Robeco Mutual Fund Managers, then you can invest in this fund.
Hence, it again boils down to the trading activites of the fund manager.
Are there any alternatives to Canara Robeco InDiGo Fund?
Yes. As stated above, one can look for investing on his own in Gold based ETF's available in India and some portion in bonds or other dent securities. For any mutual funds, we recommend going for equivalent ETF or Exchange Traded Funds on the same underlying index. They come with the benefit of exact tick by tick price movements, rather than end of the day NAV. That allows traders to benefit from intra-day price movements and make good money. Although they incur brokerage charges which vary from broker to broker. (See trading example of an ETF)
The Canara Robeco InDiGo Fund will be benchmarked to CRISIL Short Term Bond Fund Index + Price of Gold (neutral allocation: 65:35) Mr. Ritesh Jain will be the Fund manager for Canara Robeco InDiGo Fund.
Minimum Investment:
Purchases : Rs. 5000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is also available - Minimum instalment amount 2,000 and 1,000 respectively for quarterly and monthly frequency respectively and in multiples of Re 1 thereafter .
Investment Options for Canara Robeco InDiGo Fund :
- Growth
- Dividend (Payout and Reinvestment)
No Tax Benefit is available in the Canara Robeco InDiGo Fund
The entry load for Canara Robeco InDiGo Fund is as follows:
Entry Load for Canara Robeco InDiGo Fund :
Zero Entry Load
Exit Load for Canara Robeco InDiGo Fund:
Exit within 1 year from the date of allotment - 1 %;
Exit after 1 year from the date of allotment - Nil
Final Thoughts about the Canara Robeco InDiGo Fund?
By investing in this fund, one is betting on the skills of the fund manager on how well he can keep tracking the gold prices efficiently and makes his trades on behalf of the investors for the same
In this article, we will analyse how good is this Canara Robeco InDiGo Fund NFO, whether this Canara Robeco InDiGo Fund offers anything new or unique for the investors and whether the investors should invest in Canara Robeco InDiGo Fund .
Canara Robeco InDiGo Fund NFO: Review Analysis & Details
Let's begin with some basic details about Canara Robeco InDiGo Fund.What are the NFO dates for Canara Robeco InDiGo Fund ?
The NFO period for Canara Robeco InDiGo Fund is currently open and will close on 15th June 2010.
What is so unique about this Canara Robeco InDiGo Fund?
The Canara Robeco InDiGo Fund is going to invest in two class of securities - Gold ETF's and Debt related money market instruments. The word Gold ETF may make the investors think that it is an aggressive style equity fund, but the Canara Fund house is calling it a debt oriented fund.
The word InDiGo is actually derived from a combination of many terms - INcome from Debt instruments and GOld, so the name INDIGO.Anyways, going beyind the names, the fund will primarily invest in Gold based ETF's. Here is a list of Gold based ETF's available in India and here is the article about Gold ETF: Historical Performace of Gold ETF in India.
So this Canara Robeco InDiGo Fund will primarily invest the capital collected from investors in the available Gold ETF's and try to generate the returns from the gold based investments. The way this investment returns will be capitalized is to trade or invest in gold etf's based on the seasonal effects like festivals and marriages, when the demand of gold is on the higher side, and so on. However, as an analyst, I seriously doubt that point. Off late, we have seen a lot of fluctuations in gold prices which are not based upon indian festivals and occassions, but by international demand, dollar rupee exchange rate, oil prices and so on. So ultimately, its the fund manager's take on how and when will he be able to capitalize on Gold prices by trading/investing in the gold based ETF's in India.
Some portion of money will also be invested in the debt securities, like the money market instruments. This is for prividing some income in accrued form and for redemption needs. Although I could locate details about what proportion will be invested in Gold ETF's (just 10% to 35%) and how much will go in Debt securities (65% to 90%), going by the advertising which shows and old lady in traditional indian wear weraing loads of gold ornaments, it gives an impression that it will be primarily in Gold, which is not true.
So the Canara Robeco InDiGo Fund will be a good fit for investors who believe in the Gold based story. This fund automatically offers a good diversified mix of gold with some debt securities. So in its way, for the people who just want to go the Mutual Fund way, this fund is something unique. However, as an analyst who knows about the available options in the market, I would like to go for investing in two seperate things - Some more in Gold Based ETF's (list available at the link above) and rest in debt instruments. Just an option which the potential investors might like to consider.
However, if you wish to keep the headaches off and rely on the investment and trading skills of the Canara Robeco Mutual Fund Managers, then you can invest in this fund.
Hence, it again boils down to the trading activites of the fund manager.
Are there any alternatives to Canara Robeco InDiGo Fund?
Yes. As stated above, one can look for investing on his own in Gold based ETF's available in India and some portion in bonds or other dent securities. For any mutual funds, we recommend going for equivalent ETF or Exchange Traded Funds on the same underlying index. They come with the benefit of exact tick by tick price movements, rather than end of the day NAV. That allows traders to benefit from intra-day price movements and make good money. Although they incur brokerage charges which vary from broker to broker. (See trading example of an ETF)
The Canara Robeco InDiGo Fund will be benchmarked to CRISIL Short Term Bond Fund Index + Price of Gold (neutral allocation: 65:35) Mr. Ritesh Jain will be the Fund manager for Canara Robeco InDiGo Fund.
Minimum Investment:
Purchases : Rs. 5000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is also available - Minimum instalment amount 2,000 and 1,000 respectively for quarterly and monthly frequency respectively and in multiples of Re 1 thereafter .
Investment Options for Canara Robeco InDiGo Fund :
- Growth
- Dividend (Payout and Reinvestment)
No Tax Benefit is available in the Canara Robeco InDiGo Fund
The entry load for Canara Robeco InDiGo Fund is as follows:
Entry Load for Canara Robeco InDiGo Fund :
Zero Entry Load
Exit Load for Canara Robeco InDiGo Fund:
Exit within 1 year from the date of allotment - 1 %;
Exit after 1 year from the date of allotment - Nil
Final Thoughts about the Canara Robeco InDiGo Fund?
By investing in this fund, one is betting on the skills of the fund manager on how well he can keep tracking the gold prices efficiently and makes his trades on behalf of the investors for the same
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