Summary

An Open ended Fund of Funds Scheme

Type	Open-ended gold fund of fund.	Benchmark Index	Domestic Price of Gold
Min. Investment	Rs 5,000 (for lump sum) and in multiples of Rs1 thereafter.Rs1000 (for monthly SIP) Add . Investment:	Face Value	Rs 10 per unit
Add . Investment:	Rs 100 Min. Micro SIP Rs 100	Expense Ratio:	0.75% of daily or average weekly net assets of the scheme
Entry Load	Nil	Exit Load *	1% is payable if units are redeemed / switched-out within 1 year from the date of allotment. No exit loan is payable after one year.
Issue Opens	September 30, 2011	Issue Closes	October 14, 2011

Investment Objective*

"To generate returns that closely corresponds to returns generated by Axis Gold ETF".

*Source: Scheme Information Document

Is this fund for you?

Axis Gold Fund (AGF) is the first gold fund of funds scheme from the AXIS Mutual Fund. The fund will invest its corpus in Axis Gold ETF (AGETF). 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 ETFs, you don’t need to maintain any Demat account to invest in AGF. The fund also gives you the flexibility to invest as low as Rs 100 per month through SIP.

The fund is mandated to allocate its assets as under:

Type of Instrument	% of Net Asset	Risk Profile
Units of Axis Gold ETF	95 % - 100 %	Medium
Money Market Instruments	0 % - 5 %	Low to Medium

(Source: Scheme Information Document)

Fund Manager Profile

AGF will be managed by Mr. Anurag Mittal, who has to his credit B.Com (Hons), ACA and MSc in Accounting and Finance (London School of Economics). Prior to joining Axis mutual fund, Mr. Mittal was associated with Bank of America and ICICI Prudential Life Insurance Company. He has a total work experience of almost 5 years.

Fund Outlook

Launch of AGF has come at the time when gold prices are near their all time high in India. This may not be the right time to go aggressive on buying gold but it may not be a bad idea either to buy gold periodically in smaller quantities (at PersonalFN, we recommend investors to have at least 5%-10% of their portfolio in Gold.). Moreover, the asset allocation mandate of the fund will bind the fund manager to allocate at least 95% of the assets in AGETF in order to keep the tracking error to the minimum. One should be watchful over any favourable news on macro economic front of developed economies which might prove to be a bearish signal for the current secular gold bull market. However if situation in the west worsens then gold might move further up.

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Comments
dcrandall@latah.id.us Nov 04, 2011 Help, I've been informed and I can't become ignorant.
vivekthakkar1986@gmail.com Nov 30, 2011 Good one! So this blog will make us realize that stock market is not a gamble but can work in a way one wants. Only what you require is a proper study and a deep analysis.

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