Escorts seeks SEBI approval to launch Escorts Gold ETF

Escorts Mutual Fund is planning to launch a gold fund and has approached the Securities and Exchange Board of India for its approval to launch gold fund. To be named as the Escorts Gold Exchange Traded Fund will offer returns in line with domestic price of gold by investing in physical gold as well as gold as an underlying security. The scheme will also have a provision to invest up to 10% of the corpus in money market securities. The open-ended scheme will list on the National Stock Exchange. Minimum application in the scheme is Rs. 5000 and in multiples of Rs. 1000 thereafter. The scheme would not levy entry load during new fund offer. On closure of the new fund offer, the scheme would charge 1% entry load. The exit fee would not exceed 0.5%.
Read the Business Standard article.

In a similar fashion, Benchmark Mutual Fund has launched an open-ended Gold Exchange Traded Fund. Minimum application in the scheme is Rs. 10,000 and in multiples of Rs. 1000 thereafter. The scheme levies a maximum entry load of 1.5% during new fund offer. On closure of the new fund offer, the scheme would charge no entry or exit load. There is no exit fee. The fund would trade on the National Stock Exchange. New Fund Offer period is from 15th February 2007 – 23rd February, 2007.