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ICICI Prudential Gold ETF NFO

Along with recent launches of many Gold ETFs,  here comes another one from  ICICI Prudential Mutual Fund ,  namely ICICI Prudential Gold ETF. We have already seen the benefits of owning Gold ETFs like Gold Bees  and adding to that,  here are some of the key features:

Liquidity: Unlike jewellery or coins/bars, ETF units can be liquidated easily to benefit from rise in price of gold.
Cost Efficiency: Costs lower than buying, storing and insuring physical gold.
Convenience: Post NFO: Buy and sell on the exchange.Can be bought and sold in small quantities – as low as 1 unit (approximately equivalent to 1 gram of gold).
Purity: 99.50% or higher.

Minimum ApplicationAmount (NFO & Post NFO):

Rs.5000/- and in multiples of Re 1 during NFO.Investors can buy or sell units (minimum 1 unit) on a continuous basis on the National Stock Exchange or the Bombay Stock Exchange. The issue is open till 29 July ,2010.

Why one should invest in Gold ?

The word ‘Gold’, in India, invokes a number of emotions, for some it is a form of adornment and a status symbol. Through the years gold’s appeal in India has evolved from an object of pure aesthetic value to a commodity which offers itself as an avenue for investment and wealth creation.

Also investing in gold allows investors, an diversification from other asset classes like Equity, Debt and Real Estate. Investors can allocate about 5-10% of their portfolio for Gold ETFs.


  1. There are many choices to invest in gold now.

  2. AnonymousJuly 20, 2010

    Is gold in a bubble stage ?

  3. @ Gold is not yet in a bubble stage. There are lot of concerns in Eurozone and in US.


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What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

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NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.

The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …