Ppt idbi gold fund low res

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Why Gold?

Past Performance of gold as mentioned above may or may not be sustained in the future.

Long Term Returns

Gold in USD/oz

Hedge Against Inflation

Gold – A Safe Haven

*DJIA; **MSCI World Index

Source: Bloomberg; CPI – India CPI Data; Gold in INR

Gold has beaten the headline inflation 8 out

of 10 timesFY

’02

FY’0

3FY

’04

FY’0

5FY

’06

FY’0

7FY

’08

FY’0

9FY

’10

FY’1

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Protects you against gold price movements

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• 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 India's gold demand comes from Semi Urban and Rural India which constitutes

70% of the Indian population

Source: World Gold Council

Gold is regarded as a symbol of wealth in Indian households

Gold has ritual, religious and sentimental values attached. Indians buy Gold on festiveOccasions: 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

Consumption of Gold

We Love Gold, almost every Indian home has a little of Gold

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How we have held Gold?

Gold Coins & Bars

Gold Jewellery


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Modern form of Holding Gold

Gold Futures & Options

Gold ETFs

IDBI Gold Fund


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Gold: Gaining Ground asPrudent Investment

• Preserver of Value & Buying Power • Hedge Against Inflation & Economic Down-turn• Adds stability to the Investment portfolio• Asset Allocation Avenue - Diversification


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Who Are the Largest Official Holders?

As of June 2012; *As of Sept 2011Source: World Gold Council, gold.org, International Monetary Fund

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


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The performance of Gold as an asset class has been impressive, even over the long haul, hinting at the fact that it would make sense to have a part of your investments in GoldSource: World Gold Council; 30th Dec., 2011

• 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

In times of: This Asset generallyoutperforms:

Inflation Gold

Deflation Bonds

Prosperity Stocks

Recession Gold / Cash

Prudent Asset Allocation


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Asset Allocation - Benefits

Source: Bloomberg; Ace MF; weekly data as of 22/6/2012

Reference: 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.

Nifty Gold Bond Cash

Asset Allocation 1 35% 15% 35% 15%




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Introducing IDBI Gold Fund

Fund seeks to provide returns that closely correspond to the returns provided by IDBI Gold Exchange Traded Fund, which in turn invest in physical gold of 995 purity (24 carat)

Ease of Investment• Invest in lump sum for as low as Rs. 5000/-• Invest regularly through our SIP / STP option.

Frequency – Daily & Weekly (under STP only), Monthly & Quarterly (SIP / STP)

Ease of Redemption• Direct credit of redemption

proceeds to your Bank account

Ease of Holding• No Storage Charges• No worries of Theft• No Wealth Tax

Ease of Delivery• Direct credit of Gold Fund units to

your MF account statement

Ease of Transaction• Any one can invest directly

in IDBI Gold Fund• No Demat account required

Simplest Way To Own GOLD

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Investment & Redemption Flow

• 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

Creation Process• C1 – Investor Invests in IDBI Gold Fund & gets corresponding units of IDBI Gold

Fund• 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 – 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 also be bought/sold on the stock exchange.

C1

C2

C3R1

R2

R3


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Benefits of Investing inIDBI Gold Fund


Benefits of Investing in IDBI Gold Fund

Invest in Gold at Lowest Possible Price with Low

Margin

Fractional Holding of Gold

is Possible

No need of Demat Account

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Gold – A Wealth Creator

• For a SIP amount of Rs 5000/- per month

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 investmentGold equivalent to gms. of gold – Gold price as on May 31, 2012Returns calculated on monthly SIPs in gold in INR and hence different from slide 2Past Performance of gold as mentioned above may or may not be sustained in the future.

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


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Gold – A Wealth Creator

• For Lump sum Investments

Note: Gold Prices are in USD/oz converted to INR; Source: Bloomberg

Gold equivalent to gms of gold – Gold price as on May 31, 2012Returns calculated for gold in INR and hence different from Slide 2Past Performance of gold as mentioned above may or may not be sustained in the future.

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


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Comparison of Gold Fund &other Gold Instruments

Benefit Physical Gold Commodity Exchange Gold ETF Gold Fund

Quality Varies High High High

Cost of Holding High Low Low Low

Risk of Theft Yes No No No

Wealth Tax Yes No No No

Long Term Cap Gain Tax After 3 Years No (Speculation or trading) After 1 yr After 1 yr

Auto SIP Facility No No No Yes

Fragment Holding Yes No No Yes

Purchase Price Dealer Price Market Price Market Price NAV Related Price


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SIP in a Gold Fund VS Gold Retailer’s Scheme

Invest in 99.5% purity (24 Carat) Gold

Gold Fund Gold Retailer's Scheme

Open ended scheme with a perpetual SIP option – Protects against gold price movement

Only limited period (1 – 3 years) facility available in the market – No medium/long term price protection

Easy Entry & Exit Easy Entry but on premature exit- appreciation benefit is limited

Settlement in Value terms Settlement through in house jewellery only

Acquisition Margin on Gold - Low Acquisition Margin on Gold - High

Wealth Tax Not applicable Wealth Tax applicable

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Scheme Features

Minimum Investment Rs. 5000 and in multiples of Re.1

Additional Investment Rs. 1000 and in multiples of Re. 1

Investment Details

Asset Allocation

To generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund.

Risk ProfileIndicative Allocation

Min. Max.Instruments

Units of IDBI Gold Exchange Traded Fund

Reverse Repo / Short-Term Fixed Deposits / Money Market Instruments and in IDBI Liquid Fund Scheme of IDBI Mutual Fund

Medium to High

Low

100%

5%

95%

0%

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Scheme Features (Cont’d)

Load Structure

Plan

- 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)

Growth Option Only

Benchmark Domestic price of Gold

SIP Frequency Monthly & Quarterly

Min. 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 TransferPlan (STP)

Daily, Weekly, Monthly & Quarterly options

SystematicWithdrawal Plan (SWP)

Available

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Disclaimer

Statutory Details: IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. with IDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with 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 the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. For further information please contact: IDBI Asset Management Ltd., 5th Floor, Mafatlal Centre, Nariman Point, Mumbai- 400 021.

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Thank you

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Ppt idbi gold fund low res