Groww Gold ETF: Date, Review & NAV

Groww Gold ETF: Complete Overview

Groww Mutual Fund launches the Groww Gold ETF. Groww AMC has set an ETF price of Rs.500 and a multiple of Rs.1 afterward . This new fund offer is launched for cost-effective investment and is available from October 07, 2024, to 18 October 2024. This open-ended ETF scheme tracks or replicates the domestic price of physical Gold. This mutual fund scheme reopens for sale and repurchase on or before 04 November 2024, and it has a high risk. 

Groww Gold ETF replicates the price of physical Gold locally, allowing investors to invest directly into Gold bullion consisting of 99.5% pure Gold. This low-cost investment product allows an investor to directly capitalize on movements in the price of Gold without ever having to physically buy, store, or ensure Gold.

India is already quite interested in Gold exchange-traded funds. In recent months, there have been reports of significant inflows. The largest monthly inflow into Gold ETFs since 2020 was in July 2024, when Rs.1,337.4 crore was invested. The Groww Gold ETF allows investors to make investments through stock exchange unit trading. The investments will become more transparent and liquid as a result.

Groww Gold ETF Objective

This Scheme is aimed at producing returns by investing in physical Gold that is equal to the domestic price of that Gold before costs and expenses, subject to tracking errors. 

95-100% of the securities in units of Gold (Physical Gold and other Gold related instruments as permitted by SEBI from time to time) and 0-5% will be invested in debt & money market instruments (with mutual funds units included).

For more information about this new NFO Mutual Fund keep reading.

Suitability of Fund

The fund might be suitable who are looking to invest in Gold to provide returns comparable to Gold's performance, subject to tracking errors for long-term capital gain.

Scheme Plan: 

The Scheme doesn’t offer any plan or option.

Groww Mutual Fund Details

• AUM of Rs.857.24 crore (as of 30 Jun 2024)

 

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Fund Overview

How to Invest in The Scheme After the Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on or before 04 November 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Groww Gold ETF” or directly with the AMC or simply click the ‘Banner’ below.

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

 

Peers of Groww Gold ETF

Since this scheme is new, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

• At least 95% of the Scheme's net assets will be invested in Gold, which includes physical Gold and other Gold-related products as occasionally approved by SEBI. The Scheme will be exposed to the risks associated with investment concentrations in Gold and related instruments to the degree that the Scheme may choose to do so.

• Similar to Gold investments, mutual funds are vulnerable to market and other risks. Investing in a mutual fund does not guarantee against loss or ensure that the scheme's goal will be met.

• Concentration risk develops when a Mutual Fund Scheme is mandated to limit its investments to a specific industry.

• The Gold in the Scheme could be lost, damaged, stolen, or restricted in its access. The Gold in the Scheme could be lost, destroyed, or stolen in whole or in part. Events beyond human control, such as terrorist attacks, or natural disasters like earthquakes may also limit access to the Gold in the Scheme. Any of these acts could harm the scheme's operations and, in turn, an investment in units.

Past Performance of Gold ETFs

 

Groww Gold ETF- Fund Managers:

• Mr. Wilfred Gonsalves.

Conclusion

Groww Gold ETF presents a relatively inexpensive route into owning physical Gold without having to store it physically. This new fund will allow investors to enjoy returns from the movement of the price of Gold with high liquidity and transparency. It presents an apt possibility for long-term capital gains through investing in Gold. However, investors should consider the risks associated with investing in Gold, which are seen to be highly risk-prone.

Disclaimer: This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.