Motilal Oswal Mutual Fund has announced the launch of Motilal Oswal MOSt Shares Gold ETF (MOSt Gold Shares), an open ended exchange traded fund that invests in gold bullion. Continuing with the tradition of creating "India's first" products, MOSt Gold Shares is India's first Gold ETF of its kind which seamlessly enables Investment as well as Consumption of Gold for Retail Investors.
The NAV of the MOSt Gold Shares unit will track spot price of 1 gm of gold. Valued at spot gold bullion prices, investors can get pure imported Gold at a price lower than any other option in the market by redeeming the ETF units for physical gold bars in as low as 10 grams across 22 cities in India. It will provide investors a means of participating in the gold bullion market and take physical delivery of gold when needed. This makes MOSt Gold Shares stand apart from others.
MOSt Gold Shares is supported by RiddiSiddhi Bullions Limited (RSBL), as Primary Authorized Participants & Market Makers. RSBL is one of the largest bullion dealers in India. It runs RSBL Spot, one of the most successful gold and silver trading OTC systems in the world. These prices are the benchmark in the professional bullion markets across India.
Speaking on the occasion, Mr. Nitin Rakesh, CEO, Motilal Oswal AMC, said, "MOSt Gold Shares is a unique offering as it offers the best of both worlds – investment cum consumption - in a very cost effective way, you can get gold at lower price".
"RSBL and Motilal Oswal has tried to meet the needs of all Indians wanting to have gold in their portfolio - whether as an investment or as physical. This product has everything for a consumer - effective pricing, assurance in purity and weight of LBMA listed refiner bars and tax efficiency", said Mr. Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions Limited (RSBL).
MOSt Gold Shares will be listed on the NSE and BSE. The New Fund Offer (NFO) will be open for subscription from 2nd of March 2012 till 16th of March 2012. The minimum investment amount during the NFO is INR 10,000 and in multiples of INR 1 each thereafter. The fund manager of the scheme is Mr. Rajnish Rastogi .
The investment objective of the Scheme is to provide return by investing in Gold Bullion. The performance of the fund will be benchmarked to the Spot Gold Price. All gold bullion held in the scheme's allocated account with the custodian shall be of finesse (or purity) of (99.5%) or higher.
