Friday, July 25, 2008

SBI Gold ETF Set To Float Soon - July 25 , 2008

The SBI Mutual Fund has filed the offer document with the Securities and Exchange Board of India (Sebi) for launching a dedicated scheme of SBI Gold Exchange Traded Fund (SBI GETS). The objective of SBI GETS is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical gold and gold related securities as permitted by regulators from time to time.

The open-ended Gold Exchange Traded scheme would be available in retail and institutional plan. Plan A will be available for retail investors and Plan B will be opened for institutional investors. Dividend and growth both options are offered under the Scheme. Dividend option is offered with reinvestment and payout facility. Minimum investment amount is Rs 5,000 under NFO while during continuous offer - minimum-trading lot for SBI GETS units in the market will be 1 unit on the stock exchange where the units are listed. The scheme seeks to collect Rs 1 crore as minimum subscription amount. The SBI GETS will have an exposure of 90-100% in gold and gold related securities with medium and high-risk profile. While 0-10% of net asset of the fund will be invested in debt and money market instruments.

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