NFO Alert: Baroda BNP Paribas Mutual Fund launches Baroda BNP Paribas Gold ETF; all you need to know

livemint.com:

Baroda BNP Paribas Mutual Fund announced the launch of the Baroda BNP Paribas Gold ETF. The scheme opened for public subscription on November 28, 2023, and will close on November 30, 2023. The scheme re-opens for continuous sale and purchase within five days from the date of allotment.

This is an open-ended exchange-traded fund replicating/tracking the domestic prices of gold. This product is suitable for investors seeking

The investment objective of the scheme is to generate returns that are in line with the performance of physical gold in domestic prices, subject to tracking error. However, there is no assurance that the investment objective of the scheme will be realized and the scheme does not assure or guarantee any returns.

Investors can invest under the scheme with a minimum investment of ₹5000 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:

Instruments

Indicative allocations

(% of total assets)

Risk Profile

Physical gold & gold related instruments

95% to 100%

High

Debt instruments, units of debt mutual fund schemes, money market instruments, cash & cash equivalents etc

0% to 5%

Low to Medium

To date, many asset management companies (AMCs) have launched such gold exchange-traded funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Name of the fund

10-year returns (in %)

5.80

5.80

6.02

IDBI Gold Exchange Traded Fund

-

ICICI Prudential Gold ETF

-

Invesco India Gold ETF

5.86

Kotak Gold ETF

6.13

HDFC Gold Exchange Traded Fund

6.02

UTI Gold Exchange Traded Fund

-

Aditya Birla Sun Life Gold ETF

6.12