Mirae Asset Investment Managers is one of the most popular AMCs (asset management companies) operating in India and runs some of the popular mutual fund schemes. As of June this year, it has footprints in 16 markets and manages an asset of $257 billion. It is active in the US, Canada, the UK, Columbia, Brazil, Singapore, China, South Korea, Japan, Hong Kong and Australia.
Mirae is launching a gold ETF which has been named Mirae Asset Gold ETF. It is an open-ended fund, which means an investor can buy and sell its units at any point of time of his/her choice.
The NFO (New Fund Offer) opens for subscription on October 16. The NFO will close on October 22. It will be listed on October 28, the date from which it will be available for buying and selling like any ordinary stock at the market price. Between October 22 and 28, a person can buy the fund at the face value of Rs 10 after which it will be available at the market price.
Mirae Asset Gold ETF Features, risk
Through this fund investors can tap the gain from the rising price of gold in the domestic market. According to the risk-o-meter it is categorised as “high risk”. According to the NFO document, the ETF will be supported by gold certified by the London Bullion Market Association (LBMA), which carries 99.5% purity.
“As a category gold ETFs (exchange traded fund) are the most appropriate instrument to invest in gold. It carries no risk and no storage concerns unlike coins, bars or jewellery and unlike jewellery, the seller does not have to lose anything if he/she does to sell it,” remarks Prasunjit Mukherjee, CEO, Plexus Management Services.
One needs a demat account to invest in any ETF. ETFs are also highly liquid and one can redeem units as and when necessary just equity shares. ETFs also carry a low cost for the investor.
Where will Mirae Asset Gold ETF fund be deployed?
As a rule, this fund will invest 95% to 100% of total assets into gold and gold-related instruments, which might be permitted by the regulator. The remaining 0-5% might be deployed in money market instruments, revealed the NFO document.
Prominent global investment bank Goldman Sachs thinks that gold price is likely to reach new peaks in early 2025. It has already risen by 20% this year.
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