04 March 2011

Kotak Mahindra Asset Management Company launches ‘Kotak Gold Fund’ : Provides ease in investing in gold without opening a trading,demat account: full features and specifications

Kotak Mahindra Asset Management Company, one of India’s leading mutual fund houses, on Thursday announced the launch of its latest fund-of-funds named ‘Kotak Gold Fund’. This unique open-ended fund will enable investors to take exposure to gold without having a demat account. In addition to this, Kotak AMC will offer investors the option to invest as little as Rs 1,000 per month through the SIP route.

The Kotak Gold Fund will be open for subscription from March 4 to 18 and its performance will be benchmarked against the prices of physical gold.

Speaking about the need for this product, Kotak Mahindra Asset Management Company CEO Sandesh Kirkire said, “We see a lot of potential with Kotak Gold Fund primarily because of two significant factors. One by providing a platform to investors to invest in gold without a demat account and also create a discipline by systematically investing in Gold as an asset class.”

“ In recent times, gold has shown a low correlation with other asset classes while at the same time its returns potential has been similar to equity assets performance. As a result allocation into gold improves portfolio diversification and can minimize the downside risk of the portfolio,” he said.

The fund attracts the benefit of long-term capital gains tax after one year of investment. This is in contrast to physical gold where you have to pay short term capital gains tax for a period up to three years. Also, returns of this fund do not attract any wealth tax, which is not the case with physical gold.
Follow I Love India on Facebook:
Like this Post??? Share it:

No comments:

Post a Comment

Please feel free to leave your comment about the post, weather u liked it or not, if any thing u wanted to add or any type of suggestion.... just comment...