Mumbai: Anil Ambani Group firm Reliance Mutual Fund on Monday launched its Gold Exchange Traded Fund which will track the performance of gold bullion. The open-ended new fund offering which opened today for subscription will close on November 1, the company said in an investor presentation.
The units issued under the scheme would represent the value of gold held in the scheme. It is designed to provide returns that, before expenses, closely correspond to the returns provided by domestic price of gold.
Gold ETF is a security listed on the stock exchange available for trading with an intention to offer investors a means of participating in the gold bullion market without needing to take physical delivery of gold. Three domestic mutual funds already offer gold exchange traded funds -- Kotak Mahindra, Benchmark and UTI Mutual. Besides, Quantum Asset Management Co Pvt Ltd has filed initial papers with the market regulator SEBI to launch a Gold ETF.
India's total gold collection under exchange-traded funds (ETFs) had raised to 3.38 tonnes at the end of September from 3.33 tonnes in August, primarily on account of the latest entrant -- Kotak Mahindra Asset Management Co Ltd.
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