Reliance MF launches Gold Savings Fund
Posted on: 04:22 PM IST Feb 09, 2011
Mumbai: Anil Ambani group firm Reliance Mutual Fund today launched a new Gold Savings Fund, a first-of-its-kind investment scheme focused on gold, to tap a market that it expects to become bigger than even equity mutual funds.
The new fund, which is different from gold ETFs (Exchange Traded Funds) that require subscribers to have a demat account, will also offer investors the option to invest as little as Rs 100 per month, the company said here. The company said that its Reliance Gold Savings Fund will enable investments in gold without any locker or demat account - a first in the country.
Announcing the launch of the New Fund Offer - which will be open from February 14-February 28 - Reliance Capital Asset Management CEO Sundeep Sikka said: "We expect this gold investment industry to surpass equity MFs in the next three years."
Sikka said the gold investment opportunity in India was not optimally tapped and the new product will offer a simple,affordable and investor-friendly solution for investing in gold to the masses. "Indians are known for their love for gold. However, with low demat penetration in India, a lot of investors have not been able to participate in this safe mode of investment."
"This product will create a new avenue for pure gold investments for the retail investor without the need of having a demat account or a locker," he added.
The scheme's performance will be benchmarked against the price of physical gold.
The company said the new fund will enable investors to avail long-term taxation benefits from the first year itself, unlike physical gold, wherein long-term taxation can only be availed after three years. The investors will not be charged any entry load on the fund, though there would be a 2 per cent exit load if redeemed before completion of the first year.
A part of Anil Ambani group's financial services arm Reliance Capital, Reliance Capital Asset Management is the country's largest fund house and manages assets worth USD 24 billion across mutual funds, pension funds, managed accounts
and hedge funds.
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