The investment objective of the scheme is “to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund.” However, there can be no assurance that the investment objectives of the Scheme will be realized.
The scheme would allocate 95% to 100% of assets in Units of ICICI Prudential Gold Exchange Traded Fund and it would invest upto 5% of assets in Debt & Money Market Instruments (including cash & cash equivalent and Liquid/Debt Funds).
NFO Opens: September 20, 2011
NFO Closes: October 4, 2011
NFO Price: Rs10 per unit
Options: Growth and Dividend option (Payout and Reinvestment)
Minimum Application Amount: Rs 5,000 per application and additional of Re 1, thereafter. Through SIP route, investors can begin investment with as low as Rs 1000.
Exit Load: 2% of the applicable NAV, if the amount redeemed or switched out within one year
Recurring Expenses: 2.5%
Benchmark: Domestic price of gold
Fund Manager: Mr. Chaitanya Pande
ICICI Prudential Regular Gold Savings Fund Vs Gold ETF
A Gold ETF is an ETF that has gold as the underlying security. So, the value of the ETF is derived from the value of underlying gold. Gold ETF is a passive investment; so, when gold prices move up, the ETF appreciates and when gold prices move down, the ETF loses value.
While maintaining units through ETF, one needs to incur charges like expense ratio, brokerage and transaction charges. And, by investing in ICICI Prudential Regular Savings Fund, one needs to bear expense ratio of the scheme along with the exit load, in addition to the expenses of underlying Scheme.
View: Unlike Gold ETF, the fund does not require a demat account and the stock market route for buying and selling the units. You can invest via Systematic Investment Plan (SIP) with the minimum investment of Rs 1,000. If we compare to other funds, let say Reliance gold savings fund, the minimum investment required to start Reliance SIP is as low as Rs 100. Therefore, there is nothing unique about the scheme.
Returns, the important aspect of a fund. Returns by all gold saving funds are similar and the same goes for their ETF counter parts. Gold prices are ruling at its all-time high, so it is advisable that one shouldn't allot more than 10-15% of total investments.
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