IDBI Mutual Fund proposes to launch long term debt products under the Gold Exchange Traded Fund

CHENNAI: IDBI Mutual Fund, a subsidiary of IDBI Bank proposes to launch long term debt products under the Gold Exchange Traded Fund (ETF), a top company official said today.

"We intend to launch some long term debt products", IDBI Asset Management Ltd Executive Director B Sarath Sarma told reporters here.

The company recently launched an open-ended gold exchange traded fund targeted at retail investors. The new fund opened for subscription on October 19 and closes on November 2.

The purpose of the fund is to replicate the performance of gold, he said and added the fund would invest in physical gold and track prices.

He replied in the affirmative when asked if the company plans to launch more products under this portfolio. "Yes. When the markets become conducive we will launch the long term debt products."

On the Gold Exchange Traded fund, he said it is like a stock on exchange that gets traded. "We want to increase our market share. We want to launch simple products and stabilise ourselves in this category. We certainly like to be a good market player", he said.

IDBI Asset Management Managing Director and CEO Debasish Mallick said the Gold Exchange Traded Funds tracks the price of physical gold in the domestic market and are very transparent and liquid investment products.

"IDBI Gold ETF units are proposed to be listed on NSE and BSE to impart liquidity. Buy-Sell quotes in the markets on a regular basis. IDBI MF will also offer direct Buy-Sell options," he said in a statement.