Benchmark files for gold exchange traded fund

MUMBAI, MAY 20: Benchmark Mutual has filed papers for India’s first gold exchange traded fund with the Securities and Exchange Board of India (Sebi), as per information on the regulator’s web site on Friday. Gold Benchmark Exchange Traded Scheme (Gold BeES), an open-ended scheme that will list on the National Stock Exchange (NSE), will invest in physical gold.

The scheme seeks to generate returns, which closely correspond to the returns provided by the domestic price of gold. At least 90% of the corpus will be held in physical gold, while the rest can be deployed in bonds and money market securities.

Each unit of Gold BeES will have a face value of Rs 100. Minimum investment is Rs 10,000 and in multiples of Rs 1,000 thereafter. The scheme will levy 4% entry load and 3% exit load. The scheme will offer systematic investment plan during and after the new fund offer. Investors can also buy and sell units of the scheme on NSE at the price at which it trades, which will be close to the NAV value. (NAV) of the scheme.