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|
|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.