NFO alert - Mirae Asset Mutual Fund launches Mirae Asset Gold ETF Fund of Fund; should you invest?
Mirae Asset Gold ETF Fund of Fund provides investors with a simple way to diversify with gold-backed investments.
Mirae Asset Mutual Fund has launched the Mirae Asset Gold ETF Fund of Fund, an open-ended scheme that allows investors to gain exposure to domestic gold prices through investments in units of the Mirae Asset Gold ETF. The scheme's primary objective is to deliver long-term capital appreciation by investing in gold-backed securities, but there is no guarantee that this objective will be achieved.
The New Fund Offer (NFO) for the Mirae Asset Gold ETF Fund of Fund opens on October 16, 2024, and closes on October 22, 2024. The scheme will re-open for continuous sale and repurchase from October 28, 2024. With a minimum initial investment of Rs 5,000, this fund offers a convenient entry point for investors interested in leveraging the benefits of gold without the need for physical ownership.
Features of Mirae Asset Gold ETF Fund of Fund
The fund offers multiple advantages to investors, making it an appealing alternative to direct gold ownership:
- Exposure to domestic gold prices: The fund invests in Mirae Asset Gold ETF, which is backed by physical gold certified by the London Bullion Market Association (LBMA) with a purity of 99.5 per cent or higher.
- Low-cost investment: The fund offers a cost-effective way to gain exposure to gold without the additional expenses of storage, insurance, and the risks of holding physical gold.
- Diversification and stability: Gold has historically been a stable asset class during periods of market volatility, inflation, and geopolitical risk. This fund offers a hedge against such risks while adding resilience to your portfolio.
- Professional Fund Management: The scheme will be managed by seasoned fund managers Ritesh Patel and Akshay Udeshi, who bring extensive experience in handling gold and other asset classes.
- Ease of Liquidity: The fund's open-ended structure provides flexibility, allowing investors to buy or sell units seamlessly once the scheme reopens for continuous sale and repurchase.
Management Comments
Siddharth Srivastava, Head of ETF Products and Fund Manager at Mirae Asset Investment Managers (India), expressed confidence in the fund’s ability to strengthen investor portfolios. He remarked, “Mirae Asset Gold ETF Fund of Fund offers investors a simple yet effective way to diversify their portfolios and gain exposure to gold. With gold’s historic role in preserving value during inflationary periods and economic downturns, this fund aims to provide an opportunity for investors to navigate challenging times and enhance long-term wealth creation.”
Should You Invest?
Investors who wish to avoid the complexities of physical gold—such as purity concerns, storage costs, and liquidity challenges—will find the Mirae Asset Gold ETF Fund of Fund a convenient alternative. Moreover, with experienced fund managers at the helm and the backing of a trusted brand like Mirae Asset, this fund could be a prudent addition to your investment strategy.
That said, it is essential to assess your risk tolerance, financial goals, and the potential for gold's long-term growth before committing. The fund is ideal for those looking to add a layer of security to their portfolio and benefit from gold's time-tested role as a wealth preserver.
Disclaimer: The article is for informational purposes only and not investment advice.