PerFin India » ETF http://www.perfinindia.com Personal Finance and investments Wed, 01 Feb 2012 05:49:20 +0000 en hourly 1 http://wordpress.org/?v=3.1.3 Muthoot Finance to Offer Gold ETF Loans http://www.perfinindia.com/2011/07/muthoot-finance-to-offer-gold-etf-loans/ http://www.perfinindia.com/2011/07/muthoot-finance-to-offer-gold-etf-loans/#comments Fri, 22 Jul 2011 02:40:43 +0000 Shiva http://www.perfinindia.com/?p=687 This is indeed a latest development in terms of loan against gold, Muthoot Finance Ltd, which is part of the Muthoot Pappachan Group which is involved gold finance business against jewellery has announced that they will also issue loans against the Gold ETF held in demat accounts.  Muthoot has in fact tied up with the Benchmark AMC for this new offering which has their own Goldbees ETF registered at SEBI and is one of the top fund in this category.

 

Muthoot Finance which is India’s largest gold finance NBFC announced this new development of offering loan against gold ETFs which is a totally new vertical and new option for the retailers like us who have recently ventured into Gold ETFs in India and getting loan against it can be even beneficial in case we need money urgently.

 

This new Gold ETF loan will be available initially only at the 30 branches of Muthoot Finance but will be later introduced to their other 3000+ branches across India.

 

This new loan against ETF can prove beneficial for those who are in need of money urgently and don’t want to sell their existing Gold ETF units held at their demat account.  The loan amount will be 85% of the total net asset value (NAV) of the Gold ETF units being held.

 

How you can avail Gold ETF Loan and details are yet to be announced, but I guess this will just like pledging your securities for loan which we already do for getting loans against our securities held in demat account and this is how Muthoot could offer their loans for ETFs for us.  But we will need to wait and see how it works out once they spread it across India from their existing 30 branches.

 

This Gold ETFs Loan can be ideal who have in fact brought on a huge chunk of units on them and don’t want to sell them right now but are in dire need of cash but it is not advisable for all due to the percentage involved here, which is around 15% for gold loans with gold exchange traded funds.

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]]> http://www.perfinindia.com/2011/07/muthoot-finance-to-offer-gold-etf-loans/feed/ 0 Gold BeES – The Gold ETF Review http://www.perfinindia.com/2010/09/gold-bees-the-gold-etf-review/ http://www.perfinindia.com/2010/09/gold-bees-the-gold-etf-review/#comments Tue, 21 Sep 2010 04:18:47 +0000 Shiva http://www.perfinindia.com/?p=346 Gold beES stands for Gold Benchmark Exchange Traded Scheme. It is an open ended, non- equity fund, which was launched by Benchmark Asset Management Company on 15th February, 2007. It offered a unique investment opportunity for retail investors who wanted to invest in this precious yellow metal which has always been the cynosure of the Indian investors for very long.  This is the first gold ETF that was launched in India and has also proven to be the No. 1 gold ETF fund at the moment since its launch due to their good track record, although it was based on gold value in India but still Gold Bees has very less expense ratio as well.

To buy GoldBeES ETF, an investor needs a demat account as the fund is traded on NSE. After the NFO, the fund has been traded on NSE and buying and selling can be done during the trade hours just like you do for the regular stocks.  Gold Bees NAV is tracked mostly on the existing gold price in the local market.  While you cannot buy Gold ETFs via SIP but you can buy the units at a regular interval whenever you feel or see the price of gold is coming down.

Investment Objective: To provide returns that corresponds to returns provided by domestic prices of gold.

Asset Allocation: The fund has the mandate to invest 90- 100% in physical gold and 0-10% in debt instruments, however, under normal circumstances, the fund will be fully invested in gold.

Details:

  • Type of Fund: Open ended Gold ETF
  • Listed on National Stock Exchange
  • Minimum investment: 1 unit can be bought or sold; 1 unit of Gold BeES ETF is equivalent to price of 1 Gram of gold.
  • Benchmark: Domestic price of Gold
  • Entry load: no
  • Exit load: no
  • Plans offered: Growth
  • Expense ratio: 1% annualized
  • Fund Manger: Vishal Jain

Viewpoint-

It was the first Gold ETF (Exchange traded fund) which allowed convenient gold investment without any storage hassles faced with physical gold like storage, security, etc.  After three years, Benchmark Gold ETF has been ahead of all the other Gold ETFs and has 50% of Gold ETF market share.

In the past, gold investment has not given outstanding results as compared to other avenues like stocks and has also been a great option that proves as a hedge against inflation.  In times of economic volatility, gold investment has been considered as safe and stable as factors that affect the prices of gold are different than those that affect stocks and bonds. Gold can not be considered as a stand alone investment but is a great investment if one is looking to diversify their portfolio.

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]]> http://www.perfinindia.com/2010/09/gold-bees-the-gold-etf-review/feed/ 0 ICICI Prudential Gold Exchange Traded Fund http://www.perfinindia.com/2010/07/icici-prudential-gold-exchange-traded-fund/ http://www.perfinindia.com/2010/07/icici-prudential-gold-exchange-traded-fund/#comments Thu, 15 Jul 2010 04:30:03 +0000 Shiva http://www.perfinindia.com/?p=282 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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