Kotak attracts gold investors with new gold saving fund

Kotak Mutual Fund has launched a gold savings fund. The scheme is an open-ended fund of funds (FoF) scheme, and is passively managed with primary investments directed in Kotak Gold Exchange Traded Fund.

This gold saving fund allows an investor to invest without the need of holding a dematerialisation account. The fund has a minimum application amount of Rs.5,000 and allows a SIP for Rs. 1,000 per month. There are further ‘easy’ steps for the investor including a zero entry load and zero exit load upon exit after one year from allotment. But there is a 2 percent load if the exit is on or before one year from the date of allotment of units, and 1 percent if there is a switch between six months and one year of allotment. Kotak Gold fund will have an expense ratio of 1.5 percent per annum.