IDBI Gold ETF collects over Rs 110 crore in new fund offer

The NFO was open for subscription between October 19 and November 2 and the units will be allotted on November 9.

hidden November 08, 2011 18:50:39 IST
IDBI Gold ETF collects over Rs 110 crore in new fund offer

Mumbai: IDBI Gold Exchange Traded Fund, the new fund offer (NFO) launched by IDBI Asset Management, has collected over Rs 110 crore, predominantly from around 11,000 retail investors, including HNIs.

The NFO was open for subscription between October 19 and November 2 and the units will be allotted on November 9.

IDBI Gold ETF collects over Rs 110 crore in new fund offer

Gold ETFs eliminate the hassels of storing physical gold. Reuters

Financial planners will always recommend investors to hold around 5 to 10 percent of their portfolio in gold which is considered a safe bet and hedge against inflation.According to an Economic Times report, gold ETFs eliminate the hassels of storing physical gold and risks involved with it.

"In the current scenario of inflation and economic uncertainties, investment in gold could be viewed as a good hedge and prudent asset allocation strategy. We have collected over Rs 110 crore, predominantly from around 11,000 retail investors, including HNIs," IDBI Asset Management Managing Director and Chief Executive Officer, Debasish Mallick said in a statement here.

IDBI Gold ETF is designed with the purpose to invest in 'physical gold' with an objective to replicate the performance of gold in domestic prices. The Fund will adopt a passive investment strategy and seek to achieve investment objectives of scheme by minimising the tracking error between the fund and the underlying asset.

The NFO will be listed on NSE and BSE with effect from November 17, the release added.

Agencies

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