Invest in Gold for the Golden Future.
Start accumulating for gold for as little as 0.5 gram/month
Accumulate Gold in a Simple Way
What is Gold Accumulation Plan (GAP)?GAP is a facility that allows you to accumulate gold. One can start investing in gold every month through
Gold Savings Fund (FOF scheme) over a defined investment horizon.
Cost Effective & Secure
Safe, compared to physical Gold
No Need to visit Jeweller
Sell/Redeem at your convenience
How to Invest?
Set your Goal
Let us know your Investment Goal and target of Gold Accumulation
Plan your Investment
Based on your need we will help you with your Investment Plan
Select your Fund and
(Investment will be made in your desired Gold Savings Fund on a monthly basis.
You can accumulate gold equivalent to the value of as little as 0.5 Gram at prevailing gold price on MCX.)
What is Gold Accumulation Plan?
Gold Accumulation Plan is a facility which allows investor to accumulate gold for their defined goals. The investor shall invest on a monthly basis in Gold Savings Fund (FOF scheme) offered on FundzBazar over a predefined investment horizon.
How does this facility work?
Gold Accumulation Plan allows investor to invest on a monthly basis in the selected scheme over his desired investment horizon. Units of Gold Savings Fund will be allotted at the applicable NAV based on the investment made on a monthly basis.
How & where will the amount get invested?
Investment will be made in Gold Savings Fund on a monthly basis. Amount will be debited every month through the NACH mandate of bank account registered in Fundzbazar and it will be invested in the Gold Savings Fund at the prevailing NAV.
What is Gold Savings Fund?
Gold Savings Fund is an open ended Fund of Fund Scheme which in turn invests in Gold ETFs. Gold Exchange Traded Fund (ETF) invests in physical Gold of 99.5% purity. For further information Refer SID.
How can an investor invest in these schemes?
The investor will be required to provide NACH Mandate (OTM) for enabling debits of variable amounts from his bank account for investing in Gold Savings Fund
What will be the monthly SIP Installment?
The monthly SIP Installment will vary based on the prevailing spot price of Gold on MCX one working day prior to the SIP Installment date.
What will be the minimum Investment Amount and Tenure for the Gold Accumulation Plan?
The minimum Investment Amount should be the amount equivalent to the prevailing price of 0.5 grams of Gold on MCX as on the date of Investment.
The minimum tenure shall be 12 Months.
What will be the effect of additional purchase and redemption on Gold Accumulation Plan?
Once Gold Accumulation Plan is started i.e. Gold quantity to accumulate (Equivalent amount) & tenure is fixed, it will not change irrespective of any additional purchase or redemption done by an investor.
Can an Investor make additional Purchase in Gold Accumulation Plan?
Yes, an investor can make additional purchase in the Gold Accumulation Plan subject to a minimum amount of Rs.1000 and in multiples of Re. 1 thereafter.
Will there be any Lock-in period for the Gold Accumulation Plan?
No, there is no Lock-in period. However, any redemption or switch out before the specified period will be subjected to exit load. Kindly refer Scheme Information Document (SID) and Key Information Memorandum (KIM) for further information.
How will be the amount for Monthly Installment be arrived at?
Based on the planned total Gold Accumulation (in gms) and number of Installments, per month Gold Accumulation (in gms) will be calculated. Then, per month Gold Accumulation (in grams) will be multiplied by the prevailing spot price of Gold per gram on MCX one working day prior to the SIP Installment. This will give the amount of Monthly Installment.
(Total Gold to be accumulated (in gms)/ No. of months) * Prevailing MCX Gold Spot Price per gram.
How can the investor redeem from the Gold Accumulation Plan?
The investor can redeem by giving a redemption request in his Fundzbazar account. The Redemption amount shall be subject to applicable NAV based on cut-off timings and exit load, if any.
What will be the Taxation?
Investment in Gold Funds comes under the category of non-equity and the applicable Income Tax Rates are as follows:
- If the units are redeemed within 3 years from the date of investments, then Short Term Capital Gain tax rate will be as per the investor’s income tax slab rate.
- If the units are redeemed after 3 years from the date of investment, then Long Term Gain Tax of 20% with Indexation will be applicable.
- The dividend income received will be tax free. But, respective AMC has to pay a dividend distribution tax (DDT) of 28.84% before distributing this dividend income to its Unit-holders.
- In addition to the above tax rates, surcharge, education cess, secondary and higher secondary education cess may be applicable.
- Investor should consult their tax consultant for tax related issues.
Who can Invest?
- Indian Residential Individual
- Minors through natural/legal guardian
- HUF through its Karta
- Non Resident Indian (NRI), if permitted by respective AMCs
What is Tracking Error?
Tracking error means the variance between daily returns of the underlying benchmark (gold in this case) and the NAV of the scheme for any given period. NAV of the Scheme is dependent on valuation of gold. Gold has to be valued as per the formula provided by SEBI in its circular no. SEBI/IMD/CIR No. 2/65348/06 dated April 21, 2006. NAV so computed may vary from the price of Gold in the domestic market.
Factors such as the fees and expenses of the Scheme, cash balance, changes to the Underlying assets and regulatory policies may affect AMC’s ability to achieve close correlation with the Underlying assets of the scheme. The Scheme’s returns may therefore deviate from those of its Underlying assets.
Under normal circumstances, such tracking errors are not expected to exceed 2% per annum. However this may vary when the markets are very volatile.