Mirae Asset Investment Managers (India) has introduced the Mirae Asset Gold ETF Fund of Fund. This open-ended scheme will invest in units of the Mirae Asset Gold ETF, aiming for long-term capital appreciation. However, the mutual fund house has noted that there is no guarantee the investment objective will be fully achieved.
The New Fund Offer (NFO) for this gold ETF will be open for subscriptions from October 16 to October 22, 2024. After this period, the scheme will reopen for continuous sales and repurchases on October 28, 2024.
Ritesh Patel and Akshay Udeshi will manage the fund. Investors can start with a minimum investment of ₹5,000 during the NFO, with additional investments allowed in multiples of ₹1.
The Mirae Asset Gold ETF Fund of Fund provides a way for investors to gain exposure to domestic gold prices through the Mirae Asset Gold ETF. This underlying ETF is backed by physical gold certified by the London Bullion Market Association (LBMA), ensuring a purity level of 99.5% or higher.
This investment approach has several benefits, including lower costs, no need for storage, and reduced risks related to purity, compared to buying physical gold directly.
Gold is often viewed as a safe-haven asset. It can offer diversification benefits because it has a lower correlation with other asset classes. Typically, gold performs well during periods of geopolitical tension, market risks, and inflation.
By investing in the Mirae Asset Gold ETF Fund of Fund, investors can strengthen their portfolios, especially during economic uncertainty, according to the mutual fund house.
Siddharth Srivastava, Head of ETF Product and Fund Manager at Mirae Asset Investment Managers (India), commented on the NFO launch. He stated, “The Mirae Asset Gold ETF Fund of Fund offers an effective way for investors to diversify their portfolios and gain exposure to gold. With gold’s historical role in preserving value during inflationary periods and economic downturns, this fund aims to provide an opportunity for investors to strengthen their portfolios and navigate challenging times.”
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