SBI Funds launches gold exchange traded scheme

18 Apr 2009

SBI Funds Management Pvt. Ltd has announced the launch of SBI Gold Exchange Traded Scheme (SBI GETS) that would give returns corresponding to the returns provided by physical investment in gold.

SBI Funds, the joint venture between the State Bank of India and Societe General AMC of France, would disclose the net asset value (NAV) of the fund every business day, the AMC said in a release.

The new fund offer would close on 28 April.

''We at SBIMF, backed by our superior distribution network and reach across the country are best positioned to offer SBI GETS to retail investors both in rural and urban areas,''  K N Nayak senior vice president of SBI Mutual Fund, said.

With minimum initial investment of Rs 5,000 and with each unit of SBI GETS approximately equal to 1 gram of Gold, investing in Gold would be well within the reach of retail investors''.

SBI Mutual Fund, meanwhile,  launched its equity–based micro systematic investment plan (Micro SIP). The scheme aims at tapping in low-income households in rural and semi-urban areas to benefit from the long-term investment in equity as an asset class. This plan is called SBI Chota SIP.

As a part of this initiative, SBI Mutual Fund enrolled s the first 100 investors from the low-income group in Alibaug (near Mumbai) comprising mostly daily wage earners.

The minimum investment in Chota SIP is as low as Rs100 per month and the investment period of SBI Chota SIP would be minimum of 5 years.