SBI Mutual launches gold accumulation fund

SBI Mutual Fund has launched a gold accumulation fund that would allow investors to invest in a specific quantity of the AMC's gold exchange traded fund unit.

"A customer research says that investors generally prefer investing in gold on the basis of quantity more than its value. With the gold accumulation facility, SBI gold fund now offers one of the best investment opportunities to the investors," SBI MF managing director and CEO Deepak Chatterjee said.

Earlier, SBI gold fund investors could invest only by value under the systematic investment plan (SIP) alone and not by quantity.

It would now be possible for investors to invest on the basis of quantity of gold via the systematic investment plan as also the systematic transfer plan (STP) route.

SBI Gold Fund is an open ended fund, which enables the investor to invest systematically in gold without the need of buying and storing physical gold or having a demat account.

Meanwhile, the undercurrents of revival in the equities markets, weaker commodity prices and expectations on domestic monetary easing have altered market equilibrium for mutual fund schemes.

The correction in global commodity prices is expected to provide a big relief to the buyer as well as the country's economic growth.

This was evident in the increase in IIP growth rate to 2.5 per cent in March 2013 from a low of 0.6 per cent in February. SBI Mutual expects the market to remain resilient to adverse data.

''We remain committed to invest in opportunities that the market offers in terms of business quality (business model, management, earnings, and cash-flows), remodeling (operations, resources, balance sheet) and valuations,'' CIO of SBI Funds Management Navneet Munot said in a website release.