SBI Mutual Fund (MF) has launched an open-ended gold scheme, the SBI Gold Exchange Traded Fund (ETF). The scheme opened for subscription on March 30, 2009 and closes on April 28, 2009. The units of the scheme will be available at Rs 10 per unit. SBI Gold ETF seeks to provide returns that closely correspond to returns provided by price of Gold through investment in physical Gold.

 

The new SBI Gold scheme is an exchange traded fund which will be listed on National Stock Exchange. Investors can exit and enter the scheme via secondary market. The minimum initial investment is Rs 5,000 and thereafter, in multiples of Re1. The units will have a face value of Rs 100. The scheme aims at investing 90% to 100% in gold and gold bullion. It also eyes to invest 0% to 10% in debt and money market instruments.

 

Speaking at the launch, Achal Kumar Gupta, MD and CEO, SBI Mutual Fund, said that, SBI MF, backed by superior distribution network and reach across the country, is best positioned to offer SBI Gold ETF to retail investors both in rural and urban areas.