Zerodha Mutual Fund on Friday unveiled Zerodha Gold ETF, which replicates and tracks domestic prices of gold. The scheme, which opened for subscription today, will close on February 21. The fund is expected to be listed on NSE and BSE exchanges by March 1. A passively managed scheme, Zerodha Gold ETF Fund will invest 95%-100% in physical gold & gold related instruments while 0%-5% fund allocation will be in debt, money market instruments and cash & cash equivalents. “Gold is typically viewed as a financial asset that maintains its value and purchasing power during Inflationary periods. The Gold ETF offers a simple and efficient way for you to invest in gold without the concern of storage and security. As Gold has a low correlation with equity, it reduces the overall volatility of your portfolio," said Vishal Jain, CEO, Zerodha Fund House. The minimum investment amount is Rs 500 and in multiples of Rs 100 thereafter. The creation unit size will be 6,30,000 units or in multiples thereof. The exit load is Nil. The maximum total expense ratio (TER) permissible under Regulation 52 is up to 1%. Post listing, the units of Zerodha Gold ETF can be bought directly from the exchange with a minimum of 1 unit. The starting Net Asset Value (NAV) of this ETF will be around Rs 10, according to the press release by the fund house basis for comparison with other investment. Gold Exchange Traded Funds (ETFs) have been gaining traction lately, with inflows reaching ₹657 crore in January 2024, marking a seven-fold increase compared to the previous month, according to Association of Mutual Funds in India (AMFI) data. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
