Benchmark Assent Management Company, a Mumbai-based mutual fund house, has listed India's first gold exchange traded fund (EFT) Gold BeES on the National Stock Exchange on Monday.
Listed at Rs 950 per gram BoES soon gained momentum with price surged to Rs 1104 but slumped due to profit booking to Rs 947 within an hour of the launch. Allotment price, however, remained at Rs 945.7 per gram.
The trading unit for BeES has been fixed at one gram with a tick size of one paise. This instrument offers only trading and holding it in DMAT account and not the physical delivery of gold.
"Gold BeES, like any other mutual fund instrument, would attract common men to save in small quantity with a minimum possible monthly balance of Rs 1000 (roughly equivalent to the price of one gram gold BoES)
He further added that the new year was adding a new benchmark in the history of mutual funds with the addition of BeES to the securities portfolio.
Looking at the success of gold exchange traded funds in the countries like the US, South Africa and Australia which has created an asset of about $12 billion, this production in India is all set to attract good amount of retail participation from the common man, Kurian said.
