Investing in Gold Made Easy: Mirae Asset Gold ETF Mutual Fund is Open For Subscription
Mirae Asset, a popular name in the Indian mutual fund industry, has launched its new Mirae Asset Gold ETF Mutual Fund, which is now open for subscription. This fund focuses on providing investors with an affordable and easy route to invest in gold by indirectly holding units of Mirae Asset Gold ETF. The NFO for the Mirae Asset Gold ETF will close on October 22. This scheme will re-open for continuous sale and repurchase starting on October 28.
What is a Gold ETF Fund of Fund?
It is an investment vehicle that invests in another mutual fund rather than directly in stocks or other assets. In the case of the Mirae Asset Gold ETF Fund of Fund, it primarily invests in units of the Mirae Asset Gold ETF, which directly reflects the price movements of gold in the domestic market.
This fund is managed by Ritesh Patel and Akshay Udeshi (co-fund manager).
Investors can make a minimum investment of Rs. 5000 during the NFO, with additional investment allowed in multiples of Re. 1 thereafter.
An exit load of 0.50% is relevant if redeemed within three months from the date of allotment. If the exit load is redeemed after three months from the date of allotment, the exit load is nil.
The underlying ETF is backed by physical gold certified by the London Bullion Market Association (LBMA), guaranteeing a purity of 99.5% or higher.
This approach provides benefits like lower costs, no storage hassles, and minimized purity risks compared to owning physical gold directly.
Gold is often regarded as a safe-haven asset, offering diversification benefits because of its lower correlation with other asset classes. It tends to perform well during times of increased geopolitical tensions, market risk, and inflation.
According to the mutual fund house, investing in the Mirae Asset Gold ETF Fund of Fond can strengthen a portfolio’s resilience During Period of economic
uncertainty.
Commenting on the NFO launch, Siddharth Srivastava, Head of ETF Products and Fund Manager at Mirae Asset Investment Managers (India), said, “The Mirae Asset Gold ETF Fund of Fund presents an effective way for investors to diversify their portfolios and gain exposure to gold. Given gold’s historical ability to preserve value during inflationary and economic downturns, this fund focuses on helping investors strengthen their portfolios and navigate through challenging market conditions.”
Why Invest in Mirea Asset Gold ETF Fund Of Fund
- Facilitates easy transactions in gold through the mutual fund route.
- Gold purity is assured as it is regulated and certified by LBMA.
- The risk of theft and lower quality is eliminated since gold is held in digital format.
- A low correlation between gold and other asset classes aids in diversification, reducing overall portfolio risk.
- Gold is considered a reliable asset class, with the potential for wealth preservation and creation over the long term.
