Publish Date:
Motilal Oswal Mutual Fund has Introduced a unique scheme – Motilal Oswal Gold and Silver ETFs Fund of Funds
It is an open ended fund of funds scheme investing in units of gold and silver exchange traded funds
Accordingly, the objective of this scheme is to generate returns by investing in units of Gold ETFs and Silver ETFs. However, the performance of the scheme may differ from that of the underlying gold and silver ETFs due to tracking error of the underlying exchange traded funds.
However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Under normal circumstances, Motilal Oswal Gold and Silver ETFs Fund of Funds will hold an allocation of 95% to 100% of its assets in Units of Gold ETFs & Silver ETFs and 0% to 5% in Units of liquid Scheme/ debt schemes, Debt and Money Market Instruments.
As per the Scheme Information Document, Motilal Oswal Gold and Silver ETFs Fund of Funds will the Scheme shall invest all of its funds in units of gold and silver ETFs, in the range of 95% to 100%. The scheme would also invest in Units of liquid/ debt schemes, Debt and Money Market Instruments in the range of 0% to 5%.
The fund manager shall invest approximately 70% of NFO collection in Gold and 30% in Silver by way of investing in respective ETF/s tracking Gold or Silver. The performance of the scheme may not be commensurate with the performance of the respective benchmark of the scheme on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index.
Motilal Oswal Gold and Silver ETFs Fund of Fund’s performance will be benchmarked against LBMA Price of Gold and Silver.
The scheme will be managed by Mr Abhiroop Mukherjee
The NFO opens for subscription on September 26, 2022 and closes on October 07, 2022. The scheme will reopen for continuous sale and repurchase within 5 Business Days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option.
[Read: Motilal Oswal Gold and Silver ETFs Fund of Funds: Should You Invest in a Combination of Precious Metals?]