SBI Mutual Fund has announced the launch of SBI Gold Exchange Traded Scheme.
The new fund offer (NFO) has opened on March 30, 2009 and is scheduled to close on April 28, 2009.
The scheme offers only growth option. As a result, no dividend would be declared under the scheme. Minimum Amount for Application in the NFO is Rs 5000 and in multiples of Re 1 thereafter for Authorized Participants and Investors.
The price of the gold is the benchmark for the scheme. The price here refers to, the morning fixing (AM) of Gold by London Bullion Market association (LBMA).
The investment objective of the fund is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical gold. However, the performance of the scheme may differ from that of the underlying asset due to tracking error.