Mirae Asset Mutual Fund Launches Gold ETF, its first commodity ETF

Mirae Asset Gold ETF – an open-ended scheme replicating/tracking domestic price of gold.

by Prashant Kapadia/NHN

Mumbai, February 9, 2023:Mirae Asset Mutual Fund, one of the fastest-growing fund houses in India, today announced the launch of Mirae Asset Gold ETF. Mirae Asset ETF is a part of Mirae Asset Mutual Fund and is used for Exchange Traded Funds managed by Mirae Asset Investment Managers (India) Private Limited.

The New Fund Offer (NFO) opens on February 9, 2023, and closes on February 15, 2023. The allotment date is February 20, 2023, and the first NAV (Net Asset Value) date is February 21, 2023. ETF Listing will be done on the stock exchanges within five working days from the date of allotment. Investors can buy and sell units of the ETF from February 21, 2023, on stock exchanges where the ETF will get listed. The fund will be managed by the fund manager, Mr. Ritesh Patel of Mirae Asset Mutual Fund.  During the NFO, an investor can invest a minimum of Rs 5,000 or any quantum above that in multiples of Re.1

In 2023, Inflation and central bank intervention through policy rates may be considered as the key Gold Driver in 2023. The launch comes at a time when external global dynamics create challenges for the growth of the domestic and global economy making gold a relatively safe haven for investors. Gold can be assessed by investors as an important component of asset allocation.

Why to Invest in Gold ETF:

• ETF is a relatively low-cost and easy option to take exposure in Gold as it provides the convenience of buying and selling on stock exchanges just like stocks

• No risk of theft as compared to holding physical gold as Gold ETFs are held in demat accounts of the investors

• No risk of divergence in the purity of Gold.

• Transparent pricing and liquidity during buying a selling of

• Can invest as low as 1 unit where 1 unit is approx. 0.01 gram of Gold

Why should one invest in Mirae Asset Gold ETF?

• Gold seems to be a reliable asset class across time periods which has conserved & created wealth over long term

• A low correlation between gold and other asset classes helps in diversification with an aim to reduce overall portfolio risk

• Gold could act as a hedge against inflation and is known as relatively a safer investment during thetimes of turmoil

• ETF is a relatively low-cost and a liquid option to take exposure in gold which provides convenience of transaction on stock exchange just like stocks

• The risk of theft and lower quality is eliminated as Gold ETF is held in DEMAT account of the investors

Siddharth Srivastava, Head – ETF Product, Mirae Asset Mutual Fund said, “Historically, Gold has increased risk-adjusted returns in a portfolio during recessionary phases & economic downturns. Gold retains its purchasing power when the cost of goods rises, as gold as performed historically well during the times of inflation. In the current uncertain and volatile market environment, investing in Gold ETF, seems to be a reasonable option for portfolios from long term point of view”.

Mirae Asset Gold ETF intends to track the performance of the domestic price of physical Gold. Each unit of the ETF will represent roughly around .01 grams of Gold. An investor who wants to take exposure in Gold can invest via Mirae Asset Gold ETF, further explained Srivastava.

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