Kotak Gold ETF

About Kotak Gold ETF

• Kotak Gold ETF is an open-ended exchange-traded fund that invests directly in physical gold, aiming to mirror the domestic spot price of gold.
• The scheme is offered by the Kotak Mutual Fund House.
• The Kotak Gold ETF is listed on the NSE under the exchange symbol KOTAKGOLD.
• Each unit in this scheme is approximately equal to 1/115th of a gram of gold. It is listed on stock exchanges and available for trading in demat form.
• Physical gold held with the custodian, Deutsche Bank, serves as the basis for the scheme's units.
• Deutsche Bank complies with the London Bullion Market Association's (LBMA) good delivery standards for all physical gold it owns.
• The Assets Under Management (AUM) for the Kotak Gold ETF, as of June 30, 2024, stands at ₹4,166 crore.
• The fund has been managed by Abhishek Bisen since April 15, 2008. On February 28, 2022, Jeetu Valechha Sonar joined the fund’s management team.
• Trading in the ETF can be done during the usual market hours.
• One can invest in the ETF by buying its units directly through a demat account with a registered broker.

Investment Objective & Benchmark

• The benchmark for the Kotak Gold ETF is the domestic price of physical gold.
• The scheme’s investment goal is to provide returns that closely resemble the performance of actual gold.
• The scheme accomplishes its investment objective by considering possible tracking errors, ensuring that the returns reflect changes in gold prices as accurately as possible.
• The minimum investment amount for the Kotak Gold ETF is one unit when investing through an exchange.
• The ideal investment horizon for this ETF is five years or more.
• This product is appropriate for investors looking for medium and long-term returns consistent with actual gold.
• It is also suitable for people who want to invest in actual gold, known for offering stable growth
• It is categorised as a high-risk investment.

Asset Allocation & Portfolio Composition

• The Kotak Gold ETF’s portfolio’s sector allocation includes 96.35% in gold and 1.72% in futures.

The Kotak Gold ETF’s asset allocation as of the latest update stands at:

• Gold: 96.35% of net assets, comprising gold with a fineness of 0.995.
• Futures (GOLD EQ-AUG2024): 1.72%, with the market value representing the notional value.
• Triparty Repo: 2.78%.

As of July 27, 2024, the Kotak Gold ETF has delivered a CAGR of 11.74% since inception.

The ETF has delivered a return of 14.86 % in the last year compared to the benchmark’s -0.26% yield.