Zerodha Mutual Fund reduces minimum amount criteria for Zerodha Gold ETF FoF

Zerodha Mutual Fund has announced the revision in the minimum amount criteria of Zerodha Gold ETF FoF.

The changes will be effective from February 3. The fund house has informed about this change to its unitholders through a notice-cum-addendum.

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The minimum application amount or switch amount during the NFO was Rs 500 and in multiples of Re 1 thereafter. However, this section does not apply, as the ongoing offerer of the scheme has commenced after the NFO, and the units are now available for continuous subscription and redemption.

On a continuous basis, the minimum application amount/ switch-in/ additional purchase amount has been reduced from Rs 500 and in multiples of Re 1 thereafter to Rs 100 and in multiples of any amount thereafter.

The minimum application amount for SIP investment across different frequencies such as daily, weekly, fortnightly, monthly, quarterly, half yearly, and yearly has also been reduced to Rs 100 with minimum one installment.

SIP Top-up facility which is available for SIP Investments through ECS (Debit Clearing) / Direct Debit Facility / Standing Instruction only. The top-up amount now should be in multiples of Rs 100 only. Monthly and quarterly SIP offers top-up frequency at yearly intervals.

All other terms and conditions of the SID and KIM of Zerodha Gold ETF FoF, read with the addendum issued from time to time, will remain unchanged. This addendum forms an integral part of the SID/KIM of Zerodha Gold ETF FoF as amended from time to time.

Zerodha Gold ETF FoF is an open ended fund of fund scheme investing in units of Gold ETF. The fund is suitable for investors who are seeking to generate capital appreciation over the long term and investments in units of Gold ETF which in turn invest in Physical Gold.

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The principal invested in the scheme is at “high” risk according to the riskometer of the scheme. The investment objective of the scheme is to seek capital appreciation by investing in units of Gold ETF.

The scheme completed its NFO period in November 2024. The scheme is benchmarked against the domestic price of physical gold. It is managed by Shyam Agarwal and Kedarnath Mirajkar.

The fund allocates 95-100% in units of Gold Exchange Traded Fund (ETF) and 0-5% in debt securities and money market instruments.

To realize this objective, the investment strategy of the Scheme would be to invest passively in Gold ETF. The Scheme will remain invested in the underlying scheme regardless of the prevailing gold price or future outlook for this asset class.