Crisil launches Gold Index to gauge ETF performance

Our Bureau Mumbai | Updated on November 12, 2017

Ratings agency CRISIL has launched a Gold Index to track the performance of gold prices in the domestic market. This is the first index launched by CRISIL in the commodities space.

The objective of the CRISIL Gold index is to provide an independent, relevant and common benchmark for performance evaluation of investment products with gold as underlying investment, said a release from the ratings house.

“In the last 3- 4 years, a lot of Indians are investing in gold which is in the paper format. People should take a long-term perspective while investing in gold. ETFs as a concept is picking up,” said Mr Jiju Vidyadharan Head, Funds and Fixed Income Research, CRISIL Research.

The average assets under management for gold have grown from Rs 96 crore in March 2007 to Rs 6,000 crore as on June 2011, said CRISIL.

The base date of the index is January 2, 2007, which was when gold Exchange-Traded Funds (ETFs) came into existence. The daily index value is the rupee-denominated landed price of 10 grams of gold in Mumbai.

The methodology used for constructing the index is based on the price of landed gold in Mumbai. “London Bullion Market Association (LBMA) AM fix price per ounce” is used as the base price. This methodology is in line with the valuation guide prescribed by SEBI for Gold ETFs.

Published on August 29, 2011

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