Motilal Oswal Mutual Fund stated that it will launch Motilal Oswal MOSt shares gold exchange traded fund (ETF).
”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,” said Nitin Rakesh, the chief executive of Motilal Oswal Assest Management Company, which is the investment manager to Motilal Oswal Mutual Fund.
Gold ETFs were first launched in India in early 2007, and there are currently 12 such funds. An ETF generally comprises a basket of securities, which provide exposure to the market. ETF is traded on the stock exchange similar to a company share.
Motilal Oswal’s new fund offer will be open for subscription from March 2 to March 16, 2012. The minimum investment amount is about $203 (INR 10,000) and in multiples of INR 1 each thereafter. MOSt Gold Shares will be listed on the BSE and NSE.
The net asset value of the MOSt Gold Shares unit will track spot price of 1 gram of gold. The company stated that valued at spot gold 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.
MOSt Gold Shares is supported by RiddiSiddhi Bullions Ltd. (RSBL), one of the largest bullion dealers in India, as primary authorized participants and market makers.