SBI Mutual Fund introduces SBI Gold Exchange Traded Scheme (SBI GETS) - an open ended Gold exchange traded fund - designed to track the performance and yield of underlying asset Gold. The units will be listed on a National Stock Exchange.

Why Gold?

Gold has significantly low correlation with other asset classes e.g. equities, fixed income and commodities. This low correlation provides an excellent opportunity for Effective portfolio diversification & Maintaining stability in the portfolio returns. Its 5 years track record shows its …

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Top-10 fund schemes return over 25% each In 1 year as Sensex loses about 50%…

A touch of gold has done wonders for mutual fund investors in India. Over the past one year, from a group of 925 mutual fund schemes, 10 have given returns of 25% or more. And, these funds are either a gold exchange-traded fund (ETF) or a gilt scheme. Among the top five, four are gold ETFs and one is a gilt fund. Compared to positive returns …

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… Continued from Part 1 (ETF: Better investment option today)

Are ETFs like index funds?

Exchange traded fund (ETFs) and index mutual funds both seek to match the return of a market index. Both suit investors looking for diversification. However, there are important differences. The first is the minimum investment. For investors with limited funds (say, less than Rs 1,000) who want to get started in the stock market, ETFs offer a cheap entry option — you can buy even …

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An exchange traded fund (ETF) is essentially an index fund that trades like a stock and is listed on the exchange. Although popular abroad, it’s still a new concept in India. Currently, India has 16 ETFs, with total assets under management (AUM) of Rs 4,182 crore as of September 2008. In the US, by contrast, there are 707 ETFs, with combined AUM of $585.9 billion!

An ETF is a single security representing a basket of stocks that corresponds to a particular …

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