Motilal Oswal Mutual Fund launched a new open ended exchange traded fund named “Motilal Oswal Most Shares Gold ETF (MOSt Gold Shares)”.
The New Fund Offer (NFO) price for the scheme was Rs 10 per unit. NFO will open for subscription on March 2, 2012 and to close on March 16, 2012.
According to the offer document filed with SEBI, the entry load was nil and since the scheme was planned to be listed on the Stock Exchange or any other exchange, the exit load charge will not be applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode.
The minimum application amount was Rs 10,000 and in multiples of Rs.1 thereafter.
The performance of the scheme will be standardized against Spot Gold Price and Rajnish Rastogi will be the Fund Manager of the scheme.
The asset allocation of scheme will be in such a way that the objective of the scheme to provide return will be met, through investments in Gold Bullion. Hence, the scheme will allocate 95 to 100 per cent of assets in Gold Bullion, 0 to 5 per cent in government securities, money market instruments and cash at call. MOSt Gold Shares will be listed on the NSE and BSE.
Speaking on the occasion, Mr. Nitin Rakesh, CEO, Motilal Oswal AMC said, “MOSt Gold Shares is a unique offering as it offers the best of both worlds – investment cum consumption - in a very cost effective way, you can get gold at lower price!”