Wednesday January 23, 04:56 PM
Quantum launches gold exchange-traded fund |
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MUMBAI (Reuters) - Quantum Asset Management Co Pvt Ltd said on Wednesday it will launch its gold exchange-traded fund on Thursday with a listing likely in March.
"We are sticking to our philosophy of low cost... this fund has no entry load," said Devendra Nevgi, CEO of Quantum, at a press conference.
"Our unit size will be half a gram. That will be the smallest so far allowing an investor to participate in it with as low as 550 rupees or so," Nevgi added.
Quantum's gold ETF is set to be the fifth in India behind those of Benchmark, UTI, Kotak and Reliance asset management companies.
Gold ETFs are less than a year old with Benchmark launching the country's first such fund in March last year.
Nevgi said gold ETFs were still on the fringes of investment in India, but are eventually likely to get popular.
"Gold ETFs are new products... the younger generation is reacting to it. I see tremendous potential there," he said.
The four gold ETFs had a total gold collection of 4.265 tonnes at December end, seeing marginal redemptions amid soaring gold prices.
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