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Wednesday July 23, 01:50 PM

SBI's fund unit plans gold ETF

MUMBAI (Reuters) - SBI Funds Management plans to launch a gold exchange traded fund (ETF), joining five other domestic asset managers offering the product.

The firm, a joint venture between French bank Societe Generale and India's top lender State Bank of India, filed an offer document with the Securities and Exchange Board of India to offer the fund.

"It's an asset differentiator," said Chief Marketing Officer R.S. Srinivas Jain. "There are many of our investors who might not have bought gold ETF. This may be an opportunity to sell a gold ETF to them."

Indians have been slow to accept gold ETFs, which were introduced in the country's 34-member fund industry last year. They managed just about 6 billion rupees in the 5.2 trillion rupees industry at the end of June.

Other funds planning similar products include Tata Asset Management and ICICI Prudential.



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