Diversified financial services company, Motilal Oswal AMC, on Tuesday announced the launch of ‘MOSt Shares Gold ETF’, an open ended exchange traded fund that invests in gold bullion.
The New Fund Offer (NFO) will be open for subscription from March 2 and will close on March 16.
“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,” Motilal Oswal AMC CEO, Mr Nitin Rakesh, told reporters here.
The NFO will track spot price of 1 gram of gold.
“Valued at spot gold bullion prices, investors can get pure imported Gold at a price lower than any other option in the market by redeeming the ETF units for physical gold bars in as low as 10 grams,” he added.
Initially, this NFO will be launched in four cities like Ahmedabad, Bangalore, Hyderabad and Mumbai and rolled out to 22 cities pan India by the end of this year, he said.
The minimum investment amount during the NFO is Rs 10,000 and in multiples of Re 1 each thereafter.
The total asset under management of Motilal Oswal AMC is Rs 276.crore as of December 31.