ETFs - Exchange Traded Funds

#1
Exchange Traded Funds in Gold

Gold funds, which are making waves abroad, may soon land up in India.

The finance minister said that he would request Securities and Exchange Board of India to permit mutual funds to introduce a gold exchange traded fund scheme to enable households to buy and sell gold in units for as little as Rs 100 ($2.2).

Abroad, individuals invest in gold either by buying the stocks of gold mining companies or investing in open-ended mutual funds that buy such stocks.

In India, individuals hold gold by either buying gold bars, coins or jewellery.

Well, now there is another option. The gold exchange traded funds.

Exchange traded funds are similar to index funds but are traded more like a stock. They represent a basket of securities that are traded on an exchange. A gold exchange traded fund will represent gold as the underlying security.

Relatively new, such funds currently exist in three continents. They were launched in 2003 in London and Australia and only last year in New York.

Here's how the funds work

The fund actually buys gold and holds it as the underlying security. And a share represents one tenth of an ounce of physical gold. The value of the share will be at the current global price of gold.

Just like a mutual fund, the value per share will be the total value of gold held divided by the number of shares, less the trust's expenses and liabilities.

Why would anyone buy these investments rather than gold bars and coins? Because it is the most efficient, cost effective and convenient way to invest directly in gold bullion".

Also it is a good way to channelise the unofficial money circulating in the economy into the structured financial system. A substantial part of black money does find its way to the local jewellery and a bank safe full of jewellery.
 
#2
Re: Exchange Traded Funds in Gold

God Noews! Now all investors will be able to participate in the bull run in Gold!
 
#3
ETFs

I looked for Indian exchange traded funds on Google and I found this;

There are five ETFs in India at present, of which three are based on the 50-share S&P CNX Nifty index, one on the 200-share CNX Nifty Junior, and the third on the 30-share BSE Sensex.

That comes from a page dated Sept 03!!!!!!

I'm sure there must be a lot more than 5 now. Can anybody point me in the right direction to find a complete list?
 

Traderji

Super Moderator
#6
Re: ETFs

Nifty BeES
Nifty BeES, the first ETF in India, is being introduced by BENCHMARK, an Asset Management Company on January 8, 2002.

Nifty BeES trades on the Capital Market segment of NSE. Each Nifty BeES unit is 1/10th of the S&P CNX Nifty Index value. Nifty BeES units are traded and settled in dematerialised form like any other share in the rolling settlement.

Benchmark Mutual Fund calculates and disseminates real-time NAV for Nifty BeES on its website www.benchmarkfunds.com and on Reuters Page BEES01.

For further details you may visit the website www.benchmarkfunds.com

Advantages of Nifty BeES



Nifty BeES is Simple: Nifty BeES can be bought / sold like a share through any NSE terminal at prices available on the screen. The underlying portfolio of Nifty BeES very closely replicates that of the S&P CNX Nifty. Hence, Nifty BeES tracks the movement of S&P CNX Nifty.


Nifty BeES is Economical: Nifty BeES is a no load scheme. The annual expense ratio including management fees is a maximum of 0.80% of the Daily Average Net Assets, which is one of the lowest for any mutual fund scheme in India. The costs reduce further to 0.65%, for assets over Rs.500 crore.


Nifty BeES is Convenient: As it is listed and traded on the NSE, Nifty BeES can be bought / sold throughout the trading day just by a call to your broker. This gives you the power to react swiftly to changes in the market. You can even place limit orders. Nifty BeES can be held in your DP account with other portfolio holdings.


Nifty BeES is Liquid: The structure of Nifty BeES attracts liquidity from various sources such as buying / selling by investors, arbitrage with index futures, arbitrage by authorized participants with the underlying shares.


Nifty BeES is Neutral: The performance of Nifty BeES is simply the result of performance of shares in the S&P CNX Nifty Index and demand & supply in the market. There is no Fund manager bias.


Nifty BeES is Transparent: As Nifty BeES replicates the S&P CNX Nifty, investors can know at any given point of time where and how much is invested in each stock.


Nifty BeES gives Instant Diversification: Investing in just one unit gives exposure to fifty shares of the S&P CNX Nifty. This allows investors to spread risk with one single decision.


Nifty BeES is an Equitable Structure: The unique in-kind mechanism of creating / redeeming Nifty BeES by exchanging a pre-defined portfolio ensures that long-term investors do not bear the cost of short term trading as observed in traditional Open-ended structure. This insulates long-term investors from short-term trading activity.
 
#7
Kotak MF files offer document for gold ETF

Kotak MF files offer document for gold ETF

Kotak Mutual Fund has filed an offer document with market regulator Sebi for a gold exchange traded fund (ETF) and appointed Deutsche Bank and Standard Chartered as custodians for the proposed fund.

More...

Please share your views and post your comments on Kotak MF files offer document for gold ETF below!
 
#9
Investing GETF funds

Hi All,

Is it a good time to invest Gold Exchange TF? If yes what are the best available funds. Can you please suggest some.

Thanks in advance
Regards
Kalyan
 

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