On Friday, Zerodha Mutual Fund announced the Zerodha Gold ETF, which replicates and follows domestic gold prices.
The plan, which opened for subscriptions today, will end on February 21. The fund is anticipated to be listed on the NSE and BSE marketplaces by March 1. The Zerodha Gold ETF Fund is a passively managed plan that will invest 95%-100% in physical gold and gold-related products, with the remaining 0%-5% allocated to debt, money market instruments, and cash and cash equivalents.
"Gold is commonly seen as a financial asset that retains its value and purchasing power during inflationary times. The Gold ETF is an easy method to invest in gold without worrying about storage or security. Gold's low correlation with stock lessens the total volatility of your portfolio," stated Vishal Jain, CEO of Zerodha Fund House.
The minimum investment is Rs 500, with subsequent payments in multiples of Rs 100. The creation unit size will be 6,30,000 units, or multiples thereof.
The exit load is nil. Regulation 52 allows for a maximum total expense ratio (TER) of 1%.
Following listing, units of Zerodha Gold ETF can be purchased directly from the exchange for a minimum of one unit. According to the fund house's press release, the starting Net Asset Value (NAV) of this ETF will be around Rs 10, making it comparable to other investments.
Gold Exchange Traded Funds (ETFs) saw inflows of ₹657 crore in January 2024, a seven-fold rise from the previous month, according to AMFI data.
