LIC MF - LIC Gold ETF

About LIC MF GOLD ETF

• The LIC MF Gold ETF is an exchange-traded fund focusing on investment in gold. The ETF is managed by an LIC Mutual Fund house.
• The LIC MF ETF was launched on August 14, 2012.
• The scheme’s assets under management stood at ₹54.4 crore as of July 31, 2024.
• Sumit Bhatnagar is the fund manager of the LIC MF ETF.
• The ETF is traded on both BSE and NSE like a stock, which provides liquidity and flexibility for investors.
• It can be bought and sold during market hours at prevailing market prices through a demat account.

Investment Objective & Benchmark

• The LIC MF Gold ETF is designed to deliver returns that closely mirror the performance of physical gold in the domestic market.
• This ETF is benchmarked against the daily spot price of gold in the domestic market, which reflects the current trading value of gold.
• This means that the ETF's performance is intended to align with the price changes of gold as set by this daily spot-fixing.
• For investors looking to benefit from gold's long-term performance, the LIC MF Gold ETF offers a convenient investment option.
• LIC MF Gold ETF has a high-risk level profile.
• The ETF allows investment in gold without the need to buy and store physical gold.
• Investors can trade this ETF on stock exchanges, which provides both liquidity and ease of access.
• Gold often behaves differently from other asset classes, such as stocks and bonds, providing additional stability and balance to your overall investment strategy.
• Gold is generally considered a valuable asset for hedging against inflation and economic uncertainty.

Asset allocation & portfolio composition

• The fund allocation of the ETF consists of 98.75% in gold and 1.25% in cash and cash assets.
• The holding in LIC MF Gold ETF majorly consists of gold around 98.75%.
• Since its inception, the ETF has given an annualised return of 6.27%, as of July 31, 2024.
• In a single year, the LIC MF Gold ETF has given a return of 15.36% compared to its benchmarked returns of 15.88% as of July 31, 2024.