Canara Robeco launches gold fund-of-fund
Mon, 04 Jun 2012 00:19:13 -0600
The scheme will predominantly invest in units of Canara Robeco Gold ETF
Canara Robeco Asset Management Company has launched an open ended Fund-of-Fund scheme, called of Canara Robeco Gold Savings Fund, which will invest predominantly in units of Canara Robeco Gold ETF. The new fund offer (NFO) opened for subscription on June 4 and will close on June 18.
The investment objective of the scheme is to provide returns that closely correspond
to the returns provided by Canara Robeco Gold Exchange Traded Fund. The scheme’s
performance will be benchmarked against the domestic price of physical gold.
Speaking on the NFO, Chief Executive Officer Rajnish Narula said, “I am extremely happy to launch the Canara Robeco Gold Savings Fund. For centuries, Indians have been the highest consumers of physical dold with investment demand rising sharply over the last few years. With this product, investments can be made in gold as an asset class without the hassles associated with physical gold like storage, theft, opacity in pricing, impurity content and wealth tax. This product demonstrates our high conviction in gold and our commitment to deliver high quality products to our esteemed investors”
Elaborating on Gold as an investment theme, Ritesh Jain, Head of Investments at Canara Robeco Asset Management Company said, “Given the current global uncertainties, gold is fast becoming an alternate monetary asset with increasing demand from several central bankers and investors globally. In India too, rising investment demand, increased risk aversion and high inflationary conditions favour Gold as a good investment option for
the next few years.”
The scheme follows a passive investment strategy. The asset allocation of the scheme will be 95 – 100 per cent in units of Canara Robeco Gold ETF and 0 - 5% in debt and money market instruments.
The fund will allow investors to invest both through the lump-sum or the systematic investment plan (SIP) route.
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