Reliance Mutual fund has launched a Gold ETF -Exchange Traded Fund

Reliance Mutual fund has launched a Gold ETF -Exchange Traded Fund

What are Exchange Traded Funds…
Exchange Traded Funds are passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index. These schemes are listed on the stock exchange and therefore have the flexibility of trading like a share on the stock exchange.
It can also be looked as a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.

Introducing Reliance Gold Exchange Traded Fund…. RGETF as they will be called

Reliance Gold Exchange Traded Fund (RGETF) is an open ended Gold Exchange Traded Fund which will track the performance of Gold Bullion. The units issued under the scheme will represent the value of gold held in the scheme. It is designed to provide returns that, before expenses, closely correspond to the returns provided by domestic price of Gold.

Benefits of investing in Reliance Gold Exchange Traded Fund
Safety & Security

Zero concerns about physical security, theft or adulteration when faced with the tasks of custody and spot transactions.

Safeguard in the form of electronic mode in case of unforeseen circumstances where you have lost all the physical wealth

Long Term Commitments

A cost effective and convenient way to invest in gold through an instantaneous exposure to a physical asset viz gold. For example it can help
accumulate gold for your daughter's wedding

Transparency & Liquidity

Its units can be traded like a share and therefore it provides the ability to buy and sell them quickly at the ruling market price and therefore highly liquid


An efficient diversification for the portfolio of the investor

Cost Effective

The expenses incurred in buying and selling units and the schemes ongoing expenses will be less than the costs associated with buying

Indian Scenario
There is no doubt about the popularity & demand of gold in a country which exceeds 1000 tonnes of this metal.
They buy it for jewelry, contingencies, gifting, wedding, mortgage requirement etc.
Gold has ritual, religious, sentimental values attached to it, so it cant be substituted and demand is more or less indispensable.
However apart from jewelry purpose one does not need it in a physical form.
The per capital gold consumption is 0.7 grams, half that of the US and one third of the Middle East that is likely to go up.

Rationale for investment in RGETF vis a vis other forms of investments in Gold

Form Demat Form Bar or Coin Bar or Coin
Security Taken care by Fund Investor's Concern Investor's Concern
Transparency Very High Very Low High
Impurity Risk Nil High Nil
Pricing (for retail investors) Transparent. Will be traded at NSE Neither standard nor transparent. Not standard. Huge Markup, 10-15% ideally
Selling Back Sell back on exchange Conditional and uneconomical Restricted
Bid Ask Spread Very Low Very High Can't Sell back
Denomination 1 gram and in multiples of 1 gram Available in Standard denomination Available in standard denomination.
Wealth Tax No* Yes Yes
Short-term Capital Gains Tax Applicable before 1 year Applicable before 3 yearsApplicable before 3 years
Long-term Capital Gains Tax Applicable after 1 year Applicable after 3 years Applicable after 3 years

Min Investment is Rs 5000/-

For further details please go thru the FAQs and attached presentation

Thanks and regards
Pavan Mahtani
Reliance Money


Unknown said...

i want the folio holder the name of the holder of the fund plz help n suggest the site fm where i get the whole detail of it

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