Top Picks: Goldman Sach GoldBeEs
In this month’s Top Picks series we’ll take a look at investing in gold through Gold ETF and particularly GoldBeEs, the gold ETF from Goldman Sach.
You should understand the investment objective behind gold ETF and what gold ETFs are first and for that please refer to my article http://www.planstoprosperity.com/personal-finance-basics/invest-gold-etf/.
Here are the current facts of Goldman Sach’s GoldBeEs:
| Fund Category/Type | ETF / Open Ended |
| Launch Date | March 08th, 2007 |
| Fund Objecive | To provide returns that, before expenses, closely correspond to the returns provided by domestic price of gold through physical gold. |
| Minimum Investment ( at NSE/BSE) | 1 Unit/share |
| Minimum Investment (Directly) | 1000 Units |
| Entry/Exit Load | NIL |
| Benchmark Index | Domestic Price of Gold |
| Sharpe Ratio/Expense Ratio | 0.13%/1% |
| Returns (%) | 1-Year: 30.65 ; 3-Year: 23.98%; 5-Year: 24.78% |
| Category Returns (%) | 1-Year:30.70; 3-Year:24.07; 5-Year: 24.82 |
| Latest NAV (26/04/2012) | Rs.2775.92/- |
| Fund Manager | Vishal Jain |
Here are my reasons for the recommendation:
- AUM (Assets Under Management) of gold ETF in general rose by 161% in India, on higher demand, in the last 1 year, suggesting that the trend is a healthy one and gold ETFs in general would do well in future.
- Returns at par with it’s peers.
- The biggest advantage of Goldman Sach’s GoldBeEs is that it has the highest turnover among it’s peers indicating highest liquidity.
- Low Expense Ratio indicating good scope for growth.
That’s it for the Top Picks series this month. Keep the comments flowing.
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