The world’s largest consumer of the yellow metal is also helping the mutual funds to shine, as the funds in the category of gold exchange-traded funds are witnessing a positive growth in assets, following a sharp increase in the gold prices globally. Gold undoubtedly has become a safe haven for investors for quite some time now, in the wake of global economic uncertainty, increasing inflation in India and sluggish stock markets.
According to the statistics from the Association of Mutual Funds in India (AMFI), total assets of gold ETFs have leaped from Rs. 26.39 billion to Rs. 75.78 billion, almost a three-time jump, in just five months of the current fiscal year.
At the end of August, spot gold prices in India were up 42% year-on-year at Rs. 26,935 per 10 grams. There are 11 gold ETFs in India, since their foray in the markets in early 2007 including that of, Benchmark Asset Management, Kotak Mahindra Mutual Fund, UTI Asset Management Co., Reliance Capital Asset Management Ltd., Quantum Mutual Fund, Religare Mutual Fund and SBI Mutual Fund are some of the fund houses that offer gold ETFs in India.
Moreover, the market looks bright as gold in coming days following good monsoon, festive season, followed by wedding season in India when the buying of gold peaks, irrespective of price, as the trend suggests.
In terms of returns also, gold ETFs have given a double digit return over the last two years. In the month of August, gold ETFs in India have given investors the highest ever monthly return of over 15%. Incidentally, during the same month, diversified equity funds posted an average drop of 7.86%, registering their worst monthly performance since January 2011, data showed. The month of August has also recorded 9.3% drop in the Bombay Stock Exchange mid-cap index, while the small-cap index recorded a drop of 14.13%.
MF UPDATE
Daiwa announces dividend under its Government Securities Fund
Daiwa MF has declared the dividend under Daiwa Government Securities Fund – Short Term Plan, on the face value of Rs. 1000 per unit. The quantum of dividend for distribution will be Rs. 17.24 per unit as on record date. This scheme is an open ended gilt scheme with an investment objective to generate income and capital appreciation by investing predominantly in sovereign securities issued by the Central Government (including Treasury Bills) and/or by State Governments, with maximum average portfolio maturity of less than three years. The record date for dividend distribution is 22nd September 2011.
JM Financial announces dividend under JM Arbitrage Advantage Fund
JM Financial MF has declared the dividend under JM Arbitrage Advantage Fund, on the face value of Rs. 10 per unit. The quantum of dividend for distribution will be Rs. 0.16 per unit as on record date. This scheme is an open ended equity oriented interval scheme with an investment objective to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. The record date for dividend distribution is 21st September 2011.
Birla Sun Life announces merger under its schemes
Birla Sun Life MF has announced the merger of Birla Sun Life Basic Industries Fund into Birla Sun Life Infrastructure Fund and Birla Sun Life Freedom Fund into Birla Sun Life 95 Fund, with effect from 21st October 2011. Accordingly, all the existing unit holders of Birla Sun Life Basic Industries Fund and Birla Sun Life Freedom Fund have an exit option without payment of any exit load; the option can be availed from 22nd September 2011 till 21st October 2011.
Principal declares dividend under its four schemes
Principal MF has declared dividend for Principal Government Securities Fund, Principal Income Fund – Long Term Plan, Principal Monthly Income Plan – MIP Plus and Principal Monthly Income Plan under quarterly dividend option, on the face value of Rs. 10 per unit. Under Principal Government Securities Fund and Principal Income Fund – Long Term Plan the quantum of dividend will be Rs. 0.2000 per unit and Rs. 0.1500 per unit respectively. Furthermore, the quantum of dividend for distribution will be Rs. 0.2400 per unit for Principal Monthly Income Plan – MIP Plus and Rs. 0.0900 per unit for Principal Monthly Income Plan. The record date for dividend distribution is 23rd September 2011.
JP Morgan revises exit load under JP Morgan India Short Term Income Fund
JP Morgan MF has declared to revise exit load structure under JP Morgan India Short Term Income Fund for all investment options. As per revised structure of an exit load of 0.50% will be charged if units redeem or switch out within 3 months from the date of allotment. The investment objective of the scheme is to generate income by investing primarily in money market and short term debt instruments. The revised exit load structure will be effective from 21st September 2011.
Baroda Pioneer announces dividend under its three schemes
Baroda Pioneer MF has announced dividend under various schemes, on the face value of Rs. 10 per unit. The quantum of dividend for distribution under Baroda Pioneer Public Sector Undertaking Bond Fund -Quarterly Dividend Option is Rs. 0.19 per unit and under Baroda Pioneer Monthly Income Plan (MIP) Fund is Quarterly Dividend Option is Rs. 0.20 per unit. While under Baroda Pioneer 90 Day Fixed Maturity Plan-Series 3, the quantum of dividend is Rs. 0.2234 per unit. The record date for dividend distribution is 26th September 2011.