Zerodha Mutual Fund Introduces Gold ETF FoF; Offered a Convenient Way to Invest in Gold for Investors
Zerodha Mutual Fund has launched a new Zerodha Gold ETF FoF an open-ended fund-of-funds scheme as it offers an avenue for investment in units of Gold ETFs. The NFO for this scheme will open on 25th October 2024 and will close on 8th November 2024.
The primary objective of the scheme is to seek capital appreciation through investment in Gold ETFs. The fund will be benchmarked against the price of domestic physical gold and managed by two experienced professionals Shyam Agarwal and Kedarnath Mirajkar.
The minimum application size is Rs.500; it can be a multiple of Re 1. Redemption is possible in any amount or any number of units. For those who want to invest through SIP, the minimum amount of investment is Rs 500, with at least one installment being compulsorily made.
The scheme plans to invest 95-100% of its assets in Gold ETFs, with the remaining 0-5% in debt securities and money market instruments. The investment approach is passive, meaning the fund will remain invested in Gold ETFs regardless of the current gold price or market outlook.
From a regulatory perspective, Total Expense Ratio (TER) is capped at 1%. Gold is the best investment during the inflationary period and has a very low correlation with equity, thereby proving to be a great tool for reducing overall portfolio volatility.
This Gold ETF FoF will enable an investor to invest in gold without having to bother about storage and security issues. As a way of SIP, investors could step up their exposure to gold- an appropriate option for the new as well as the seasoned investors.
It is for investors who are looking to invest money to obtain long-term capital appreciation. Investments in it will be through Gold ETFs, which hold physical gold. The fund’s riskometer classifies this investment under the “high” risk category and is best suited for risk-tolerant individuals.
