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The traditional way of buy gold suggests the investors to be mindful of following factors
Traditional Way of Buying Gold
Physical gold from
reputed dealer
Maintenance cost eg
polishing, remaking etc
Buy gold only during
special occasions i.e.
marriage, child birth etc
or during festival such as
Dhanterras, Diwali Onam,
Akshya Tritya etc.
Threat of
Theft/Robbery
Gold coins or jewellery
must be stored in
secured environment
Resale value of gold
is in discount to the
traded price
2
Gold ETF: A Transformed Way of Investing
Gold ETF invests in standard gold bullion
of 99.5%/ 99.9% purity
Buying gold in digital form in click of a button
Gold ETF can be bought in smaller
denominations
Gold ETFs can offer liquidity as they are
tradable in the stock exchange during a
trading session at the prevailing price
The transactional expenses in a Gold ETF is
less than that of physical gold
The prices of Gold ETF is available on real
time basis
3
Growth of Gold ETF in India
High Networth/Ultra High networth individual & Younger generations are seeing Gold ETF
as a smart way of investing
17800
15800
13800
11800
9800
7800
5800
3800
Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 May-18 Oct-18 Mar-19 Aug-19 Jan-20 Jun-20 Nov-20 Apr-21 Sep-21
AU
M(R
s.in
crs)
4
Data as on: 30th September 2021 Data Source: Source: MFI explorer, MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. The above are the performances of the indices and do not indicate the performance of the Scheme. Past performance may or ma y not be sustained in the future.
Performance: Gold vs. Other Asset Classes
Source: Edelweiss research
-7
14
10
6
13
59
21
16
13
16
6 6 7 7 7
-10
0
10
20
50
40
30
60
70
Perform
ance (%
)
1Y 3Y
Gold price performance
5Y 10Y 20Y
Nifty 50 price performance 10Y G-sec bond yield (avg.)
6
Gold has been a Laggard in last 10 Years
Source: Edelweiss research
84
51
5
0
10
50
40
30
20
80
70
60
90
Global debt World gold stock (nominal)World equity market cap
2010 - 2020 increase (USD Trn)
Extremely
muted
(U
SD
Trn
)
7
High Deficit and Low Real Rate augurs well for Gold Prices
Source: IMF, Federal Reserve Bank of St. Louis, Edelweiss research Calendar Years have been taken in the above graph
25
20
15
10
5
0
(5)
D e c 6 1 D e c 7 1 D e c 8 1 D e c 9 1 D e c 0 1 D e c 1 1 D e c 2 1
(%
)
US fiscal deficit minus 10Y real rate
1970sHigh deficits and
low real rates
2000sHigh deficits andlow real rates
120
480
1,920
30
Dec 61 Dec 71 Dec 81 Dec 91 Dec 01 Dec 11 Dec 21
($/troy
ounce,lo
gscale
)
Gold price (USD/troy ounce)
1970sGold up15x
2000sGold up 5x
8
Low Real Rate Should Propel Gold Higher
10
8
6
4
2
0
(2)
(4)
(%
)
US 10Y G-sec yield minus CPI (12mma)
1970sNegative real
rates
2000sFall in real
rates
CurrentNegativereal rates
120
480
1,920
30
Dec 61 Dec 71
Source: IMF, Federal Reserve Bank of St. Louis, Edelweiss research Calendar Years have been taken in the above graph
Dec 81 Dec 91 Dec 01 Dec 11 Dec 21
Gold price (USD/troy ounce)
2000sGold up 5x
1970sGold up15x($
/tro
y o
un
ce, l
og
scal
e)
9
World Gold Stock to World Equity Market Cap is still quite Low
22
20
18
16
14
12
(%
)
10
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21
World gold stock (nominal terms) to World Equity Market cap (%)
Quite low
10
Data as on October 2021. Source: Metals Focus, Refinitiv GFMS, World Gold Council, Edelweiss research. The performance of the index does not signify performance of the scheme
Note: World gold stock (nominal) is equal to Above ground gold stock (qty.) taken from World Gold Council, multiplied by international gold prices (USD terms) Calendar Years have been taken in the graph above.
The Scheme invests predominantly in gold and gold related securities.
It is passively managed and closely tracks domestic gold prices derived from the London Bullion AM
prices Units of the ETFs are available for trading on stock exchanges.. Demat account is complusory
Inception date 24-Aug-10
BSE/NSE Scrip Code 533244/ICICIGOLD
ISIN INF109K01FV4
Minimum Application
Stock Exchange: One unit (One Unit - apprx 1gm Gold)
AMC: 110,000 units* (One Unit - apprx 1/100th of 1 gram of Gold).
Benchmark LBMA AM Fixing Prices
AUM as Sep 30, 2021 1400 crs
Expense Ratio 0.50% p.a.
Tracking error 0.25%
Introducing: ICICI Prudential Gold ETF
Data as on: 30th
September 2021 Source: Metals Focus, Refinitiv GFMS, World Gold Council, Edelweiss research
Note: World gold stock (nominal) is equal to Above ground gold stock (qty.) taken from World Gold Council, multiplied by international gold prices (USD terms)
98%
2%
Gold (995 Purity)
Short Term Debt and net current
assets
11
Reasons to Invest in ICICI Prudential Gold ETF
Invest in gold in cost
efficientmanner
Liquid in nature or capability to
convert the investments into cash
Create wealth over a period of time
Gold aims to act as a hedge
against inflation
Adding gold to your investment
portfolio can be a good way of
diversification.
Units of Gold ETF can be pledged
as a collateral for loans
12
Note: The above factors are not exhaustive
How does the ETF work
Buyer
CASH
ETF
SHARES
ETF
SHARES
ICICI
Prudential
GOLD ETF
CASH
STOCKS
STOCKS
Stock Exchange
Authorized
Participant
13
A fund of funds scheme with the primary objective to generate returns by investing in units of
ICICI Prudential Gold ETF
Investors invest in
ICICI Prudential
Regular Gold
Savings Fund (FOF)
ICICI Prudential
Regular Gold Savings
Fund (FOF) invests in
ICICI Prudential Gold
ETF
Gold ETF buys
physical gold
Demat account is not required for investing in ICICI Prudential Regular Gold Savings Fund (FOF)
Investment Approach
15
Portfolio & Features
100%
0%
ICICI Prudential Gold ETF
Portfolio as on Sep 30, 2021
• Plans/Option: ICICI Prudential Regular Gold Savings Fund (FOF) – Direct Plan and
ICICI Prudential Regular Gold Savings Fund (FOF). Growth Option and IDCW Option with
IDCW Payout and IDCW Reinvestment sub-option
• SIP: Available. Monthly Rs. 100/- (plus in multiple of Re. 1/-)
• Minimum 6 installments
• Quarterly Rs. 5,000/- (plus in multiple of Re. 1/-)
• Minimum 4 installments
• Systematic Transfer Plan, Systematic Withdrawal Plan & other features: Available
• Exit Load: 1% if redeemed/switch out in 15 days
Nil if redeemed/switch out for period more than 15 days
• AUM: Rs. 545 crs as on Sep 30, 2021.
• Expense: Other: 0.53% p.a.
• Direct: 0.09% p.a
• Minimum Application amount, including switches: Rs. 100 and in multiples of Re. 1 thereafter
16
Disclaimers
18
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: All figures and data given in the document are dated unless stated otherwise. In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information
developed in-house. Some of the material used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates.
Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included
statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking
statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks,
general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in
interest rates, foreign exchange rates, equity prices or other rates or prices etc.
The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special,
exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on this material.
Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund
Disclaimer of National Stock Exchange of India Limited:
“As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter NSE/LIST/5280 dated March 04, 2021
permission to the Mutual Fund to use the Exchange's name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund's units are proposed to be listed subject to, the Mutual Fund fulfilling
various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly
understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or
endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund's units will be listed or will continue to be listed on the Exchange; nor does it take any
responsibility for the financial or other soundness of the Mutual Fund, its sponsors, its management or any scheme of the Mutual Fund.
Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by
reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.”
Disclaimer of BSE Limited:
It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or completeness
of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Limited”