Kotak Mutual Fund Files Draft for Gold Silver Passive FoF

Kotak Mahindra Mutual Fund has filed draft papers for launching the Kotak Gold Silver Passive Fund of Fund (FOF). It is an open-ended scheme that will invest in units of Kotak Gold ETF and Kotak Silver ETF. The primary objective is to generate long-term capital appreciation.

Investment Structure

The fund will allocate 95% to 100% of its assets in the 2 underlying ETFs. Up to 5% may be invested in money market instruments or debt-oriented schemes for liquidity. It will not invest in derivatives, overseas securities, or instruments with structured obligations.

The New Fund Offer (NFO) will be launched at a price of ₹10 per unit. Both Direct and Regular plans will be available under the Growth option. The scheme allows SIP, STP, SWP, and other systematic investment facilities during and after the NFO.

Loads and Minimum Investment

There is no entry or exit load applicable. The minimum investment during the NFO and for ongoing purchases is ₹100. The same limit applies to SIPs and additional purchases. The minimum redemption amount is also set at ₹100 or the account balance, whichever is lower.

The fund will benchmark its performance against the Domestic Price of Gold and Silver (Total Return Index). NAV will be disclosed on all business days by 10 AM on the AMC and AMFI websites.

Expense Ratio

The Total Expense Ratio (TER) is capped at 1.00% of daily net assets, inclusive of the expenses from the underlying schemes. Direct plans will carry a lower TER than regular plans.

The scheme will be jointly managed by Rohit Tandon (for ETF allocations) and Abhishek Bisen (for debt and money market instruments).

Read More: Silver ETFs See 126% AUM Growth in One Year, Surging Ahead of Gold Funds!

Conclusion

The fund is awaiting final approval. As a passive FoF, it will mirror the price movements of gold and silver through ETF units without any active portfolio management.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.