ICICI Prudential Gold Exchange Traded Fund
After the HDFC Gold ETF, now is the time for ICICI Prudential Gold ETF or Exchange Traded Fund. It is just like any other Gold ETFs that are available in India but from the house of ICICI Prudential that’s all. But also there may be some slight difference like the expense ratio, entry and exit rates, etc. But otherwise with ICICI Prudential Gold ETF you can own gold without the hassles of keeping the physical gold in your home instead in a much safer option of your demat account.
This ICICI Prudential Gold Exchange Traded Fund (ETF) is an open-ended exchanged traded fund. It follows the international gold price for 24 carat gold and thus the NAV is truly and entirely dependant on the gold price every day. The main advantages of owning gold via Gold ETF is that you get to own only pure gold, convenience of not carrying physical gold and hence safety part is assured and finally as always gold has always proven to be a great opportunity for wealth creation and can prove as a great option as a hedge against the inflation.
Benefits of ICICI Gold ETF:
- Gold power is unlocked in a more liquid and easy to transact option unlike the jewellery and gold coins or bars, etc.
- Costwise the cheapest when compared to physical gold in terms of storing, buying, and insuring the same.
- Even can be brought for smaller denomination of even 1 gram of gold (1 unit).
- Ease of buying during ICICI Prudential Gold ETF during NFO just by filling a form otherwise via the exchange.
- Transparency is assured as the NAV is declared daily and portfolio holding is disclosed monthly.
- 99.50% purity is assured on your gold.
Fund Manager: Mr. Chaitanya Pande
NFO Period: June 30, 2010 to July 29, 2010
Objective: To provide an option of buying and selling gold at the domestic gold price that is derived from LBMA AM.
Loads During NFO: No entry or exit load.
Minimum Amount: During NFO the minimum amount to invest is Rs. 5000 and in multiples of Re. 1. After that the units can be brought and sold even 1 unit either on the Bombay Stock Exchange or National Stock Exchange and hence liquidity and profit is maintained.
Benchmark: Gold price derived from LBMA (London Bullion Market Association) AM price fixing.
Overall rather than buying gold in physical format like gold bar or gold coins, gold ETFs have been proving to be an excellent option due to the sheer convenience and liquidity and safety that it offers and hence it is very much advisable to go for Gold ETFs but pick and choose the best asset management company among them considering the various factors like expense ratio, etc. Only inconvenience being that you cannot invest in gold ETFs via SIP option in Mutual Funds. But you can buy in small units whenever you want and add it to your portfolio.
Opinion: Coming back to ICICI Prudential Gold ETF, during NFO it is easier to buy the same if you don’t have any online trading account, just by filling in the form and then just open a demat account and transact later. But considering the fluctuation in gold price think twice before investing right now. But as always if you are looking for long term goals, then this is an excellent opportunity to invest in gold ETF, and this ICICI Gold ETF is very much recommended for the same.
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