In order to enable investors to invest systematically in gold and gain advantage of the recent rally in the metal’s prices, SBI Mutual Fund has launched a new fund offer, SBI Gold Fund, which is an open ended Fund of Fund (FOF) scheme that invests predominantly in the units of SBI Gold Exchange Traded Scheme (SBI GETS). The new fund offer has been opened on 22nd August and will close on 5th September, 2011.
The scheme seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS). You can invest in SBI Gold Fund just like any other mutual fund scheme without the hassles of opening a demat account, providing you an opportunity to take exposure into Gold as an asset class, in a convenient way.
The fund offers undernoted Benefits:
- No need to hold or open a DEMAT account: SBI Gold fund provides an opportunity for the investor, to take exposure into Gold as an asset class, in smaller and convenient investment amount without having a demat account.
- Systematic Investment Plan (SIP): It is a long term disciplined investment technique which provides a systematic way of investing in Gold. This allows you to save and invest regularly without ‘timing the markets’.
- Liquidity: An investor can subscribe and redeem gold fund on all business days.
- Cost Effective: Investing in gold through the SBI Gold Fund in physical application mode enables you to invest in a low cost manner as the investor does not have to incur expenses like annual maintenance charges for demat account, delivery / brokerages charges or transaction charges incurred for investing through the dematerialized mode. However, investors will be bearing the recurring expenses of the scheme, in addition to the expenses of the underlying Scheme.
- Tax Benefits: SBI Gold Fund is treated as a non equity product from tax perspective. It enables an investor to claim long term capital gains tax after a period of one year of investments, whereas for physical gold long term taxation is available after 3 years.
- Convenience of investing: Investing in gold through SBI Gold Fund is easy – investors can directly subscribe units through at the various designated investor service centres across the country thereby making it easily accessible and convenient.
- Assured Purity & Security: SBI Gold Fund would invest in units of SBI Gold Exchange Trade Scheme (SBI GETS) and all gold bullion held in SBI GETS shall be of fineness of 995 parts per 1000 and it will be held safe with the custodian.
- Availability of add on facility: The fund allows investors to avail add-on facilities like systematic transfer plan, systematic investment plan and systematic withdrawal plan.
Key features of the fund are as under:
|Type of Fund||Open ended Fund of fund|
|Investment Objective||The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS)|
|NFO Launch date||August 22, 2011|
|NFO closes on||September 05, 2011|
|Scheme Re-opens on||September 19, 2011|
|Minimum investment||Rs. 5000 and in multiples of Re. 1 thereafter|
|SIP Dates||SIP cycle of 5th/ 10th/ 15th / 20th /25th/30th (for February last business day)|
|Plan and Options Offered||Growth and Dividend Plan (under dividend- reinvestment & payout facility both are available)|
|Benchmark||The Scheme’s performance will be benchmarked against the price of physical gold. The price here refers to the morning fixing of Gold by London Bullion Market association (LBMA)|
|Load Structure||During NFO as well as ongoing basis- Entry Load : Nil- Exit Load
|Past Performance of Gold as on 29-07-2011||
For any further assistance, kindly contact us on SBI MF customer care helpline at 1800 4255 425 (BSNL/MTNL lines) and 080-22300021 for Others from 9 am to 6 pm, Monday to Saturday. Alternately, you can also email at email@example.com or visit us at www.sbimf.com
For SBI MF Gold Fund Presentation Click here
For SBI MF Gold Fund Key Information Memorandum Click here
For SBI MF Gold Fund Leaflet – investors Click here