NFO Alert: All you need to know about newly launched DSP Gold ETF Fund of Fund
DSP Asset Mutual Fund announced the launch of the DSP Gold ETF Fund of Fund, an open-ended fund of fund scheme investing in DSP Gold ETF.
The scheme opened for public subscription on November 03, 2023, and will close on November 10, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
This open-ended Fund of Fund scheme is suitable for investors seeking
The primary investment objective of the scheme is to generate returns by investing in units of DSP Gold ETF. There is no assurance that the investment objective of the scheme will be realised.
“Gold is a great addition to a typical equity – debt-heavy portfolio due to the low correlation to these asset classes. The scheme structure presents a convenient way to diversify your portfolio and systematically accumulate gold, automatically adding depth and multi-dimensionality to your investments," says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.
Investors can invest under the scheme with a minimum investment of ₹100 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Indicative allocations (% of total assets)
Minimum
Maximum
Units of DSP Gold ETF
95%
100%
High Risk
Cash and cash equivalents
0%
5%
Low Risk
To date, many asset management companies (AMCs) have launched such gold ETF fund of funds. Most of these funds are not too old, which means that investors can assess them only by their recent performance. These include:
Mutual Fund House
Nifty Bank ETF
UTI Mutual Fund
LIC Mutual Fund
LIC MF Gold ETF Fund of Fund
ICICI Prudential Mutual Fund
ICICI Prudential Regular
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