The Fund will adopt a passive investment strategy and seek to achieve investment objectives of scheme by minimizing the tracking error between the Fund and the underlying asset.
IDBI GOLD exchange traded fund (IDBI Gold ETF), the New Fund Offer (NFO), launched by IDBI Asset Management Ltd received an overwhelming response from investors. The NFO collected over Rs 110 Crores, predominantly from around 11,000 retail investors, including HNIs.
Commenting on the success of IDBI Gold ETF, Debasish Mallick, Managing Director and Chief Executive Officer, IDBI Asset Management Ltd, said: “The positive response received by our NFO confirms investors’ faith in IDBI Brand. In the current scenario of inflation and economic uncertainties, investment in gold could be viewed as a good hedge and prudent asset allocation strategy”.
IDBI Gold ETF is designed with the purpose to invest in physical Gold with an objective to replicate the performance of gold in domestic prices. The Fund will adopt a passive investment strategy and seek to achieve investment objectives of scheme by minimizing the tracking error between the Fund and the underlying asset. The NFO was open between October 19, 2011 and November 2, 2011. The units will be allotted on November 9, 2011. The scheme will be listed on NSE and BSE with effect from November 17, 2011.
IDBI Asset Management Ltd. is a wholly-owned subsidiary of IDBI Bank Ltd. The sponsor for the IDBI MF is IDBI Bank Ltd and the Trustee Company is IDBI MF Trustee Company Ltd. IDBI Mutual Fund’s mission is to promote financial inclusion, by assisting the common man in making informed investment choices, through mutual funds and thus bring to him, the prosperity of the capital markets.