BENGALURU, December 16, 2010 (FBC) India’s Mire Property Mutual Fund has It aims to launch its first commodity-linked exchange-traded fund (ETF) by the end of the first quarter of 2023, the company’s head of passive investment products announced on Friday.
Mirae Asset Investment Managers India has applied to India’s markets regulator, the Securities and Exchange Board of India, to launch a gold and silver ETF and a gold and silver asset allocation product, Siddharth Srivastava, head of ATF products, told Reuters. In an interview.
“(Gold ETF) is a good product that one can use in asset allocation. Indians have a special place for gold from an investment point of view,” said Srivastava, adding that it will take some time before silver gains.
Mirae Asset Mutual Fund had more than 1.16 trillion rupees ($14.03 billion) in assets under management as of Nov. 30.
The exchange-traded funds created a risk-free product for each security issued by physical shares of a particular commodity.
Investors in India, the world’s second-largest consumer of gold, are keen to buy physical gold, investing mostly in equity-linked ETFs and index funds.
ETFs can be easily traded in small amounts and have some advantages, such as low expense ratios, which is why many investors are comfortable and the segment continues to grow, Srivastava said.
According to data from the Association of Mutual Funds of India, net inflows into gold ETFs stood at Rs 7.30 billion at the end of November this year. Nippon India, HDFC Mutual Fund and State Bank are some of the financial companies that offer gold ETF products in India.
The world’s largest gold-backed exchange-traded fund (ETF) — New York’s SPDR Gold Trust GLD — is down more than 6% this year, down 3%.
However, Srivastava said there is strong investment demand for gold ETFs.
($1 = 82.6930 Indian Rupees)
Reporting by Nallur Sethuraman and Bharat Rajeswaran in Bengaluru; Editing by Saumyadeb Chakrabarty
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