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Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
Ppt idbi gold fund low res
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Ppt idbi gold fund low res

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  • 1. Why Gold? Long Term Returns Gold – A Safe Haven Gold in USD/oz Hedge Against Inflation *DJIA; **MSCI World Index Gold has beaten the headline inflation 8 out of 10 times 2 3 04 5 6 7 8 9 0 1 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’1 ’1 ’ FY FY FY FY FY FY FY FY FY FY Source: Bloomberg; CPI – India CPI Data; Gold in INRPast Performance of gold as mentioned above may or may not be sustained in the future. Protects you against gold price movements 2
  • 2. Consumption of Gold Gold is regarded as a symbol of wealth in Indian households Gold has ritual, religious and sentimental values attached. Indians buy Gold on festive Occasions: Akshay Tritiya, Dhanteras, Dussera or any other auspicious occasion. Weddings are incomplete without Gold. Accumulation starts with the new born child Gold symbolizes security, Gold for centuries has been regarded as a safe haven in India In India, gold has been accumulated and passed from generation to generation• At more than 18,000 tonnes, Indian households hold the largest stock of gold in the world• Gold purchases in India accounted for 32% of the global total in 2010• Large stable demand; two-thirds of Indias gold demand comes from Semi Urban and Rural India which constitutes 70% of the Indian populationSource: World Gold Council We Love Gold, almost every Indian home has a little of Gold 3
  • 3. How we have held Gold?Gold Coins & Bars Gold Jewellery Protects you against gold price movements 4
  • 4. Modern form of Holding GoldGold Futures & Options Gold ETFs IDBI Gold Fund Protects you against gold price movements 5
  • 5. Gold: Gaining Ground as Prudent Investment• Preserver of Value & Buying Power• Hedge Against Inflation & Economic Down-turn• Adds stability to the Investment portfolio• Asset Allocation Avenue - Diversification Protects you against gold price movements 6
  • 6. Who Are the Largest Official Holders? Central banks of various countries Central Banks Holdings Tonnes % of Reserves United States 8133.5 75.3% Germany 3396.3 72.3% IMF 2814.0 - Italy 2451.8 71.9% France 2435.4 72.0% China 1054.1 1.7% Switzerland 1040.1 16.9% Russia 895.8 9.1% Japan 765.2 3.2% Netherlands 612.5 60.2% India 557.7 9.9% ECB 502.1 33.3% Taiwan 422.4 5.7% Portugal 382.5 90.6% Adds Stability: Relied upon by Central banks As of June 2012; *As of Sept 2011 Source: World Gold Council, gold.org, International Monetary Fund Protects you against gold price movements 7
  • 7. Prudent Asset AllocationThe performance of Gold as an asset class has been impressive, even over the long haul, hinting at the fact that it would make sense tohave a part of your investments in GoldSource: World Gold Council; 30th Dec., 2011 In times of: This Asset generally outperforms: Inflation Gold Deflation Bonds Prosperity Stocks Recession Gold / Cash • Gold is a hedge against uncertainties and Inflation • Gold provides stability to an investment portfolio • Recommended Allocation - atleast 15% of your portfolio to gold provides ideal diversification and protection in case of downturns Protects you against gold price movements 8
  • 8. Asset Allocation - Benefits Nifty Gold Bond Cash Asset Allocation 1 35% 15% 35% 15% Asset Allocation 2 40% 10% 35% 15% Asset Allocation 3 45% 5% 35% 15%Source: Bloomberg; Ace MF; weekly data as of 22/6/2012Reference: Equity - Nifty, Bond : Crisil Bond Index, Cash : Crisil Liquid Index and Gold: MCX pricePast Performance of gold as mentioned above may or may not be sustained in the future. Protects you against gold price movements 9
  • 9. Introducing IDBI Gold FundFund seeks to provide returns that closely Ease of Investmentcorrespond to the returns provided by IDBI • Invest in lump sum for as low as Rs. 5000/-Gold Exchange Traded Fund, which in turn • Invest regularly through our SIP / STP option.invest in physical gold of 995 purity (24 carat) Frequency – Daily & Weekly (under STP only), Monthly & Quarterly (SIP / STP)Ease of Delivery Ease of Redemption• Direct credit of Gold Fund units to • Direct credit of redemption your MF account statement proceeds to your Bank account Ease of Transaction Ease of Holding • Any one can invest directly • No Storage Charges in IDBI Gold Fund • No worries of Theft • No Demat account required • No Wealth Tax Simplest Way To Own GOLD 10
  • 10. Investment & Redemption Flow Creation Process • C1 – Investor Invests in IDBI Gold Fund & gets corresponding units of IDBI Gold Fund R3 C1 • C2 – IDBI Gold Fund in turn invests in the IDBI Gold ETF and holds units of IDBI Gold ETF • C3 – Physical Gold is bought by IDBI Gold ETF and held with the custodian. - Hence each investor holds physical gold proportionate to his investment amount with a purity of 995 (24 Carat approx) Redemption Process • R1 – On redemption, Gold held by the custodian is sold and the cash proceeds are credited to IDBI Gold ETF.R2 C2 • R2 – IDBI Gold Fund sells units in IDBI Gold ETF and gets the cash proceeds from IDBI Gold ETF. • R3 – IDBI Gold Fund in turn transfers the redemption amount to the investor corresponding to the NAV . - The redemption amount includes the appreciation in gold price over the holding period > For smaller investment/redemption amount (less than 1000 ETF units) the ETF units can R1 C3 also be bought/sold on the stock exchange. • Investor can invest minimum Rs. 5000/- as lump sum or Rs.500/- through SIP / STP Route • Direct purchase and sale of the units at the AMC through open-ended IDBI Gold Fund • Uniform purchase and sale price at NAV Protects you against gold price movements 11
  • 11. Benefits of Investing in IDBI Gold Fund FractionalHolding of Gold is Possible Benefits of Investing in IDBI Gold Fund Invest in Gold at Lowest Possible No need of Price with Low Demat Account Margin Protects you against gold price movements 12
  • 12. Gold – A Wealth Creator• For a SIP amount of Rs 5000/- per month 10 yr 7 yr 5 yr 3 yr 1 yr Amount invested (Rs.) 6,00,000 4,20,000 3,00,000 1,80,000 60,000 SIP Start Date 1st June 2002 1st June 2005 1st June 2007 1st June 2009 1st June 2011 Returns 21.78% 23.87% 25.06% 25.43% 18.17% Investment Value 1,897,688 983,696 558,155 260,370 65,780 Equivalent gms of gold 693.4 359.4 203.9 95.1 24.0 Note: Gold Prices are in USD/oz converted to INR; Source: Bloomberg For a SIP of 5 yrs, an investor could have accumulated over 200 gms of gold and in the process getting a return of over 25% per year for his investment Gold equivalent to gms. of gold – Gold price as on May 31, 2012 Returns calculated on monthly SIPs in gold in INR and hence different from slide 2 Past Performance of gold as mentioned above may or may not be sustained in the future. Protects you against gold price movements 13
  • 13. Gold – A Wealth Creator• For Lump sum Investments 10 yr 7 yr 5 yr 3 yr 1 yr Amount invested (Rs) 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 Investment Date 1st June 2002 1st June 2005 1st June 2007 1st June 2009 1st June 2011 Returns (CAGR) 18.57% 25.23% 26.84% 24.01% 27.15% Investment Value 5,49,366 4,83,032 3,28,344 1,90,721 1,27,147 Equivalent gms of gold 200.7 176.5 120.0 69.7 46.5 Note: Gold Prices are in USD/oz converted to INR; Source: Bloomberg Gold equivalent to gms of gold – Gold price as on May 31, 2012 Returns calculated for gold in INR and hence different from Slide 2 Past Performance of gold as mentioned above may or may not be sustained in the future. Protects you against gold price movements 14
  • 14. Comparison of Gold Fund & other Gold InstrumentsBenefit Physical Gold Commodity Exchange Gold ETF Gold FundQuality Varies High High HighCost of Holding High Low Low LowRisk of Theft Yes No No NoWealth Tax Yes No No NoLong Term Cap Gain Tax After 3 Years No (Speculation or trading) After 1 yr After 1 yrAuto SIP Facility No No No YesFragment Holding Yes No No YesPurchase Price Dealer Price Market Price Market Price NAV Related Price Protects you against gold price movements 15
  • 15. SIP in a Gold Fund VS Gold Retailer’s SchemeGold Fund Gold Retailers SchemeOpen ended scheme with a perpetual SIP option – Only limited period (1 – 3 years) facility available in the market – NoProtects against gold price movement medium/long term price protectionEasy Entry & Exit Easy Entry but on premature exit- appreciation benefit is limitedSettlement in Value terms Settlement through in house jewellery onlyAcquisition Margin on Gold - Low Acquisition Margin on Gold - HighWealth Tax Not applicable Wealth Tax applicable Invest in 99.5% purity (24 Carat) Gold 16
  • 16. Scheme FeaturesInvestment Details To generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund.Asset Allocation Indicative Allocation Instruments Risk Profile Min. Max. Units of IDBI Gold Exchange Traded Fund 95% 100% Medium to High Reverse Repo / Short-Term Fixed Deposits / Money Market Instruments 0% 5% Low and in IDBI Liquid Fund Scheme of IDBI Mutual FundMinimum Investment Rs. 5000 and in multiples of Re.1Additional Investment Rs. 1000 and in multiples of Re. 1 17
  • 17. Scheme Features (Cont’d)Load Structure - Entry Load : Not Applicable - Exit Load: 1% for exit within 12 months from the date of allotment during NFO and on an ongoing basis (Redemption /switch-out/Transfer/ Systematic Withdrawal Plan)Plan Growth Option OnlyBenchmark Domestic price of GoldSIP Frequency Monthly & QuarterlyMin. SIP Installments • Rs. 500 and in multiples of Re.1 thereafter for a minimum period of 12 months OR • Rs. 1000 and in multiples of Re. 1 thereafter per month for minimum period of 6 months • Rs 1,500 and in multiples of Re.1 thereafter per quarter for a minimum period of four quarter.Systematic Transfer Daily, Weekly, Monthly & Quarterly optionsPlan (STP)Systematic AvailableWithdrawal Plan (SWP) 18
  • 18. DisclaimerStatutory Details: IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. withIDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) andwith IDBI Asset Management Ltd. as the Investment Manager. Risk Factors: AMC / Trustee /Sponsor is not liable or responsible for any loss or shortfall resulting from the operations of thescheme. Mutual Fund Investments are subject to market risks, read all scheme relateddocuments carefully. For further information please contact: IDBI Asset Management Ltd., 5thFloor, Mafatlal Centre, Nariman Point, Mumbai- 400 021. 19
  • 19. Thank you 20

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