Quantum Gold Fund ETF

Quantum Gold Fund is an Exchange Traded Fund also known as ETF.

ETF units are listed on stock exchanges and traded like equity shares. An ETF would have some underlying security or group of securities like an index, sector stocks or commodities, like gold. These underlying securities determine the ETF’s value.

A Gold ETF is fund that has gold as the underlying security. So, the value of the ETF is derived from the value of underlying gold. Gold ETF would be a passive investment; so, when gold prices move up, the ETF appreciates and when gold prices move down, the ETF price comes down. As Gold ETFs track gold prices, the only differentiating factor would be the costs borne by the Fund House.

Quantum Gold Fund – QGF is an open ended Scheme Replicating / Tracking Gold, will invest in Physical Gold. It seeks to offer investors an innovative and cost-efficient way to invest in gold. Each unit of the QGF will be approximately equal to price of half (½) gram of Gold. Through the lower cost of operations and the availability of units having smaller denominations, QGF would provide investors an excellent means of asset allocation.

It is pertinent to note that Quantum Mutual Fund is India’s first Direct to Investor fund house and does not pay any commission whatsoever to distributors. Not paying commissions decreases the expense of most of our schemes and thereby adds to the returns of the schemes (subject to performance).

Investor looking for Portfolio diversification under Gold asset can invest in QGF.

Some attributes of QGF are;

The Investment Objective of the Scheme is to generate returns that are in line with the performance of gold and gold related instruments subject to tracking errors. However, investments in gold related instruments will be made if and when SEBI permits mutual funds to invest, in gold related instruments. The Scheme is designed to provide returns that before expenses, closely correspond to the returns provided by gold.

Systematic Investment Plan, Systematic Transfer Plan and Systematic Withdrawal Plan are not available under QGF.

Investors can avail of these facilities by investing in the Quantum Gold Savings Fund. Click here to read about Quantum Gold Savings fund.

Investors do have the option of regularly buying units from the listed exchanges and accumulating their QGF holdings.

The scheme may invest in the following Instruments:

The AMC uses `passive` approach to try and achieve the Scheme`s investment objective. The QGF will invest up to 100% but at least 90% of its total assets in the physical Gold. Quantum Gold Fund endeavors to track domestic prices of gold by investments in physical gold.
Click here to view the current portfolio of the Quantum Gold Fund.

The Benchmark for the Scheme is domestic price of physical Gold. The scheme would primarily invest in physical gold with an investment objective to generate returns that are in line with performance of gold and gold related instruments. Hence, the benchmark is chosen as it is most suited for comparing the performance of the scheme with regard to its stated objective.

Mr. Chirag Mehta is managing the scheme.

Chirag Mehta has more than 11 years of experience in handling commodities. Chirag is a qualified CAIA (Chartered Alternative Investment Analyst), and has also completed his Masters in Management Studies in Finance. He has interned at Kotak & Co. Ltd and has also attended the Federation of Indian Commodities Exchanges as part of his internship.

The minimum amount of investment will change according to the category you fall under i.e. Retail Investor and Large Investor or Authorised Participants (AP).

Retail Investors- On the Exchange: Approx. equal to price of ½ gram of Gold quoted on the NSE. On NSE, the units can be purchased /sold in minimum lot of 1 unit and in multiples thereof.

To read more on minimum amount for Large investors/AP please read the SID of QGF or please click here.

Quantum Gold Fund is listed on the National Stock Exchange (NSE) with the symbol QGOLDHALF.

You can buy/sell Quantum Gold Fund units on the National Stock Exchange, through your stock broker, or through your online trading service. Each QGF unit is approximately equal to ½ gram of gold.

The investment process will change according to the category you fall under i.e. Retail Investor and Large Investor or Authorised Participants (AP).

A list of the ticker codes used by various member-brokers on their online terminals is given below:

LARGE INVESTORS /AP- To read more on how to invest for Large investors/AP please read the SID of QGF or please click here

* Not Applicable (In terms of SEBI circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 it has been notified that, w.e.f. August 01, 2009 there will be no entry load charged to the schemes of any Mutual Fund.)

It should be noted that Quantum Mutual Fund has not charged Entry Load for any of its schemes since inception. We were one of the first mutual funds in India to launch schemes with no entry load, much prior to SEBI discontinuing the same.

There is No exit load if you wish to redeem from the scheme. (Retail investor can exit the scheme only through secondary market).

The Quantum Gold Fund offers only Growth Option.

I) The Fund creates / redeems units of the Scheme in 'Creation Unit Size' which is exchanged for portfolio Deposit which would consist of physical Gold of defined purity and quantity and Cash component. The fund declares the Portfolio Deposit or Cash Component on the website / www.QuantumMF.com and the same would be applicable for creating and redeeming unit size for that Business Day.

(A) Applicable NAV for Purchases in Creation in Unit Size:

(i) In respect of valid application received from Authorised Participant / Large Investor along with the Portfolio Deposit and / or Cash Component, up to 3.00 p.m. on a Business Day at the official point of acceptance, NAV of the day on which the application is received shall be applicable.

(ii) In respect of valid application received for purchase in Creation Unit Size, from Authorised Participant / Large Investor along with the Portfolio Deposit and / or Cash Component after 3.00 p.m., on a Business Day at the official point of acceptance, the closing of NAV of the next Business Day on which the application is received shall be applicable.

(B) Applicable NAV for Redemptions in Creation Unit Size:

(iii) In respect of valid application received up to 3.00 p.m. on a Business Day at the official point of acceptance, NAV of the day on which the application is received shall be applicable.

(iv) In respect of valid application received after 3.00 p.m. on a Business Day at the official point of acceptance, the closing NAV of the next Business Day on which the application is received shall be applicable.

(II) On the Exchange:

As the Units of the Scheme are listed on NSE, an investor can buy / Sell units on continuous basis on the capital market segment of NSE during trading hours like any other publicly traded stock at prices which may be close to the actual NAV of the Scheme.