Zerodha Fund House has officially launched a new mutual fund scheme called Zerodha Gold ETF. The fund opened for public subscription on February 16, 2024, and is set to close on February 21, 2024. The new scheme is an open-ended exchange-traded fund replicating/tracking the domestic prices of gold, making it suitable for investors seeking long-term capital appreciation or investment in gold to generate returns similar to the performance of gold, subject to tracking errors and is managed by Shyam Agarwal.
The Zerodha Gold ETF allows investors to invest with a minimum of ₹500 per plan/option and in multiples of Re 1, and there is no upper limit for investment. The allocation of the scheme will include 95% to 100% in physical gold & gold-related instruments and 0% to 5% in debt and money market instruments, cash, and cash equivalents.
To date, many asset management companies (AMCs) have launched similar gold exchange-traded funds, providing inclined investors to avail of the returns corresponding to the total returns of the securities in this particular index. The benchmark for the scheme is the domestic prices of physical gold, and there are no entry or exit loads to the scheme.
While the Zerodha Gold ETF provides an investment opportunity, it involves “High Risk” and is best suited to investors willing to understand that their principal will be subject to high risk only. The AMC reserves the right to revise the load structure from time to time and may adjust the benchmark for evaluation of the scheme’s performance.
Overall, the Zerodha Gold ETF adds another option for investors seeking exposure to gold and its performance, providing opportunities for long-term capital appreciation and investment in gold. As with any investment, investors are encouraged to consult with their financial advisors to determine the suitability of the product for their investment goals and risk tolerance.
