SBI Gold New Fund Offers Minimum investment denomination in Rs 100

SBI Mutual Fund, one of India's largest mutual funds house has launched Gold Fund, an open ended Fund of Fund to enable the common man to invest systematically in gold and take advantage of the current rally. The NFO period is from 22 August 2011 to 5th September 2011.


SBI Gold Fund is an open ended Fund of Fund (FOF) scheme that invests predominantly in the units of SBI Gold Exchange Traded Scheme (SBI GETS). The scheme seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS). You can invest in SBI Gold Fund just like any other mutual fund scheme without the hassles of opening a demat account, providing you an opportunity to take exposure into Gold as an asset class, in a convenient way.

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 How Gold funds are treated from tax point of view???

The fund is designed in such a way, that an investor can invest through a single investment or through Systematic Investment Plan (SIP) as per their convenience. The minimum denomination of investment is kept as Rs 100, which is very affordable for a common man.

SBI Gold Fund would allocate 95% to 100% of assets in Units of SBI GETS with medium to high risk profile. On the flipside it would allocate upto 5% of assets in Reverse repo and / or CBLO and / or short-term fixed deposits and/or schemes which invest predominantly in the money market securities or liquid schemes with low to medium risk profile.

The scheme offers two plans viz. growth and dividend plan. Under the dividend plan, payout and reinvestment facility is available.

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.

SBI Gold Fund offers Systematic Investment Plan (SIP) for the investors. SIP is offered for a minimum of Rs 100 per month.

Entry load charge will be nil for the scheme. Exit load charge will be 1% if exited within 1 year from the date of allotment and nil if exited after 1 year from the date of allotment.

Tax Treatment on Gold Exchange Traded Funds

SBI Gold Fund shall be benchmarked against the domestic price of gold. The price here refers to the morning fixing of Gold by London Bullion Market association (LBMA).