Launch of Religare Gold ETF

 "The desire of gold is not for gold. It is for the means of freedom and benefit" – Ralph Waldo Emerson

 

We are pleased to announce the launch of Religare Gold Exchange Traded Fund – an open ended Gold ETF. The objective of the fund is to generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error.

 

New Fund Offer Opens on: 28^th January, 2010

New Fund Offer Closes on: 23^rd February, 2010

 

Some advantages of investing in Gold:

·         Gold is an inflation hedge – keeps purchasing power intact

·         Gold is an Effective Diversifier - Helps to contain Portfolio Risk. Low / Negative Co-relation with major asset classes

·         Gold is a Safe Haven in financial crisis – Solid Asset

·         Global Currency Debasement – US dollar weakness to continue. Other countries are reluctant to see their currencies appreciate. This could lead to increase in price of Gold

·         Investment demand on a rise – globally hedge funds, Gold ETFs and mutual funds are driving up investment demand for gold for its safe haven qualities

·         Gold Exposure is warranted based on macroeconomic considerations

·         Central Banks have changed their attitude towards gold – increasing Gold reserves

Salient features of Religare Gold ETF:

·         The Fund will invest only in physical gold of 99.5 purity or higher

·         No issuer risk

·         One Unit of Religare Gold ETF will represent 1 gram of Gold

·         The Fund intends to remain fully invested at all times

·         Gold Exposure, through derivatives is not allowed

·         Lending and borrowing is not allowed

·         Currency Hedging versus US dollar

·         The gold is physically segregated and stored exclusively in high- security vaults