SBI Mutual Fund Rolls Out Gold Exchange Traded Fund – March 31 , 2009

SBI Mutual Fund has rolled out SBI Gold Exchange Traded Scheme (GETS), which is its gold exchange traded fund and it expects to raise Rs 150-200 crore from the new offer. The scheme will invest a maximum of 100 per cent and a minimum of 90 per cent in gold as well as gold bullion instruments while it could invest up to 10 per cent in debt as well as money market instruments. The new scheme opened on March 30 and will close on April 28. The minimum amount of investment in this scheme is Rs 5,000 and in multiples of Re 1 thereafter. The scheme will be benchmarked against the gold price, based on the prices given by London Bullion Market association (the morning fixing). Each unit of this scheme will be approximately equal to the closing price of one gram of gold on the date of allotment. The units of this scheme will be listed on the NSE. The entry load for the applications for up to Rs 25 lakh is 2.50 per cent while for Rs 25 lakh-Rs 50 lakh is 1.50 per cent, for Rs 50 lakh-one crore is one per cent and for applications above one crore there is no entry load. After the listing the investors have the option of exiting the scheme at prevailing NAV without any exit load.