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New Exchange Traded Gold Fund Launched by Axis MF

Sunday, October 31, 2010

Recently, Axis Mutual Fund announced the launch of its new open-ended exchange traded fund. It is known as Axis Gold ETF. It is focused to on gold-related investment and derivatives.

An online news portal about business and economy - economictimes.indiatimes.com, quotes a statement of Axis MF, “The fund will allocate a maximum of 100 per cent of its corpus for investment in gold, including derivatives. It might also invest up to 10 per cent of its corpus in money market instruments.

Market sources said Axis MF aims to mop up Rs 300 crore through the new fund offer (NFO), which closes on November 3.

The minimum investment in the Axis Gold ETF NFO is Rs 5,000.” So, the fund comes with 100% allocation of its corpus for investment in gold. It includes derivatives also. Minimum investment in this fund is Rs. 5000.

The news portal quotes a statement of Axis AMC Managing Director & CEO Rajiv Anand also, “Axis Gold ETF will give investors an opportunity to participate in gold as an asset class. Investors prefer gold in their portfolio as it acts as a shield in times of market turmoil.”

Further the news portal adds, “The scheme will be benchmarked against the domestic price of gold. The ETFs will be listed on the National Stock Exchange.

Following its listing, Axis Gold ETF will be the seventh listed gold ETF on the Indian bourses. The total assets under management (AUM) of the six fund houses that had listed gold ETFs on domestic exchanges as of September 30 was over Rs 3,000 crore.”

The news portal quotes another statement of Mr. Anand, “Performance of gold has been good in the last six years. ETF investment would provide investors liquidity as they can trade in the instrument.” It is really a good news in financial market after the launch of Kotak Secure Invest Insurance and Kotak Wealth Insurance by Kotak Life Insurance.
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