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.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.