Friday, May 17News That Matters

SBI Gold Fund Accumulation Facility – Details & Review


SBI Gold Fund has recently launched the unique Gold Accumulation Facility under it’s Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP).

The facility would allow investors to invest in the scheme based on a specific quantity of SBI Gold Exchange Traded Schemes (SBI GETS) unit, wherein unit of SBI GETS represent approximately 1 gram of gold.

Till now, you could invest in Gold Mutual Funds only by a specific amount and not by quantity (as in Gold ETF – you buy by quantity)

Terms & conditions for the Gold Accumulation Facility SIP:

  • Target scheme: SBI Gold Fund
  • Frequency: Monthly & Quarterly
  • Minimum units: 1 unit of SBI GETS & in multiples of thereof
  • Maximum SIP instalment amount will be capped at Rs. 1 lakh.<
  • Minimum number of instalments: 6 for monthly SIP & 4 for quarterly SIP.
  • This facility will be available only through direct debit banks.
  • Investor will mention number of units of SBI GETS as SIP instalment in SIP mandate form.
  • Instalment amount will be calculated based on SBI GETS NAV, four business days prior to the due date, and will be rounded off to the nearest rupee and accordingly, units will be allotted for SBI Gold Fund. For example SIP due date is 5th January 2013. Installment amount will be calculated based on SBI GETS NAV of 1st January 2013.
  • SIP is available only on specific dates of the month viz. 5th/10th/15th/20th/25th/30th (For February, last business day). In case 5th/10th/15th/20th/25th/30th (For February, last business day) is a holiday then next business day.
  • All other terms & conditions of regular SIP will be applicable for Gold Accumulation Facility SIP in SBI Gold Fund

Editor’s Comment & Review

This is first-of-its kind facility for Gold Mutual Funds – where the investors can invest based on number of units rather than amount.  

You could have always bought  Gold ETF  units based on number of units.

However, Gold Mutual Funds are expensive as compared to other forms of Investing in Gold (Gold ETF , eGold)

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