Canara Robeco Gold Savings Fund
An Open ended Fund of Funds Scheme
Summary
| Type | Open-ended gold fund of funds | Benchmark Index | Domestic Price of Gold |
Min. Investment:
Additional Investment: | Rs 5,000 (for lump sum) and in multiples of Rs 1 thereafter.
Rs 500 (for monthly SIP, minimum 12 instalments)
Rs 1000
| Face Value | Rs 10 per unit |
| Entry Load | Nil | Exit Load * | 2% is payable if units are redeemed / switched-out within 1 year from the date of allotment. No exit load is payable thereafter. |
| Issue Opens | June 04, 2012 | Issue Closes | June 18, 2012 |
Investment Objective*
“To provide returns that closely correspond to returns provided by the Underlying scheme.” i.e by the Canara Robeco Gold EFT
*Source: Scheme Information Document
Is this fund for you?
Canara Robeco Gold Savings Fund (CRGSF) is the first gold fund of funds scheme from the Canara Robeco Mutual Fund. The fund will invest its corpus in Canara Robeco Gold ETF. The Fund is launched especially considering the requirements of those who want to buy gold in a paper form but do not have a Demat account. Unlike in case of ETFs, one doesn’t need to maintain any Demat account to invest in CRGSF. The fund also gives you the flexibility to invest as low as Rs 500 per month through SIP.
The fund is mandated to allocate its assets as under:
| Type of Instrument | % of Net Asset | Risk Profile |
| Units of Canara Robeco Gold ETF | 95 % - 100 % | Medium |
| Money Market Instruments | 0 % - 5 % | Low to Medium |
*Source: Scheme Information Document
Fund Manager Profile
The Fund will be jointly managed by Mr Akhil Mittal and Mr Kiran Shetty. Mr. Mittal is a bachelor of commerce and has to his credit Master’s Degree in Business Administration. He has a total work experience of 7 years in the field of research and fund management. Prior to joining Canara Robeco Mutual Fund; Mr. Akhil Mittal has worked with Principal PNB Mutual Fund, Edelweiss Securities and Rallis India.
Mr Shetty holds a Bachelor’s Degree in Management and has a total work experience of 6 years. Prior to joining Canara Robeco Mutual Fund, he has worked with Edelweiss Securities.
Fund Outlook
Launch of CRGSF has come at the time when gold prices are off from their all-time high in the international market. However in India, the gold is reaching new highs. The weakness in Rupee against US dollar reflects in the firm gold prices. The gold is providing a good hedge against the adverse rupee movement protecting the purchasing power of investors in the international markets. The fund will benefit if the gold continues its northward journey. Cross currency movement will be captured in the gold prices. If the developed world demonstrates faster growth, although it is unlikely, the gold prices would show higher resistance to move up. But if the loose monetary stance is extended in developed economies further than the gold will keep it northward march. The fund however, would disappoint investors if they enter with an expectation of earning returns that would resemble with the returns earned over last 2 years.
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