Reliance Money Precious Metals, an Anil Ambani Group company, has tied up with the World Gold Council to launch ‘Reliance My Gold Plan’.
The plan will provide customers an opportunity to accumulate physical gold by investing a fixed amount on a monthly basis.
Reliance will split the money invested into equal parts to buy gold over 20 successive business days.
The gold that is purchased will then be credited to investor account.
This will help customers average out the price variation. For instance, a minimum subscription of Rs 1,000 a month translates to accumulation of gold for as low as Rs 50 a day.
Customers will be charged a fee of 1.50 per cent for the instalment paid every month.
The plan will have a lock-in period of six months. After the lock-in period, investors can redeem partly or fully without any charges.
A pre-maturity charge of 2.5 per cent will be levied if gold is redeemed within six months.
At the end of the plan term, customers have the option to exchange their accumulated gold into 24 carat gold coins or jewellery at 100 designated jewellers. Reliance plans to increase its accredited jewellers network to 1,000 in the next few months.
“The price will be the landed cost of gold including transportation, storage and various levies determined on a daily basis,” said Vikrant Gugnani, Chief Executive Officer, Reliance Capital.
Investors will have an option to access, on the Internet, the price at which gold was purchased for their portfolio.
According to Government data, there are five lakh registered jewellers and an equal number of unregistered ones who operate in India, said Gugnani. Of these, there are only 9,156 BIS (Bureau of Indian Standard) Hallmarked jewellers.