Money Today and Plexus Management evaluate the Reliance Gold Exchange Traded Fund and bring you the report card.
FUND FACTS
Offer open: Till 6 November
Scheme type: Open-ended gold exchange traded fund
Minimum investment and subscription: Rs 5,000; Unit price: Rs 10
Loads: Entry load: 1.5%, Exit load: nil
Options: Growth and dividend
Investor grievances: Priyanka Parulekar. Tel: (022)30414800. E-mail: priyanka.parulekar@relianceada.com
FUND STATS
Objective: To provide returns that closely correspond to those from investments in physical gold (and gold-related securities as permitted by market regulators from time to time)
Benchmark: Prevailing price of gold
Fund manager: Vikram Dhawan
Asset allocation:
90-100 per cent: Physical gold or gold-related instruments
0-10 per cent: Debt
Comparable existing scheme:
Fund Name: UTI Gold
NAV* (Rs): 978.25
6-month return(%): 6.78
Since inception(%)#: 2.53
*As on 24 October. #Inception date: March 2007
FUND PROGNOSIS
Idea distiller: Gold funds have been seeing some interest from fund houses. Reliance Mutual Fund is simply plugging the product hole gap in its portfolio of offerings.
Fund house report: Reliance Mutual Fund manages assets of Rs 70,440.57 crore across all fund types.
Track record:
Returns profile: 5/5
Risk profile: 3/5
Fund manager report:
Performance of fund manager
Returns profile: 5/5
Risk profile: 4/5
INVESTORS TAKEAWAYS
Who should apply: Anyone who thinks gold has potential for good returns or someone who wants to use gold as a hedge to impart some stability to his portfolio that comprises volatile investment instruments.
Remember: A simple product, it may at best be for those who are looking at retaining gold on paper. Actually the category itself dictates prices and does not leave much of steering room to the fund manager. Invest in it if brand Reliance is the draw for you.
