IDBI Gold ETF NFO collects over Rs 110 cr

Mumbai: IDBI Gold Exchange Traded Fund, the new fund offer (NFO) launched by IDBI Asset Management, has collected over Rs 110 crore, predominantly from around 11,000 retail investors, including HNIs.

The NFO was open for subscription between October 19 and November 2 and the units will be allotted on November 9.

"In the current scenario of inflation and economic uncertainties, investment in gold could be viewed as a good hedge and prudent asset allocation strategy. We have collected over Rs 110 crore, predominantly from around 11,000 retail investors, including HNIs," IDBI Asset Management Managing Director and Chief Executive Officer, Debasish Mallick said in a statement here.

IDBI Gold ETF is designed with the purpose to invest in 'physical gold' with an objective to replicate the performance of gold in domestic prices. The Fund will adopt a passive investment strategy and seek to achieve investment objectives of scheme by minimising the tracking error between the fund and the underlying asset.

The NFO will be listed on NSE and BSE with effect from November 17, the release added.

Source: Financial Express