SBI Asset Management Company Limited, India’s largest fund house by assets, has announced a 1:100 split on the face value of each unit of SBI – ETF Gold.
Post split, each unit of SBI – ETF will trade with the face value of Gold Effective from 6 January 2022 instead of 1 Currently 100.
The Net Asset Value (NAV) of SBI – ETF Gold as on Jan 4 was 4,254. Hence a 1:100 split is likely to bring down the NAV to a level of approx. 42.
However, this will not have any effect on the current value of the holdings of the unitholders of the scheme.
According to industry insiders, SBI Mutual Fund’s move is aimed at making the scheme more accessible to retail investors, which can also help increase liquidity in the stock exchange.
SBI – ETF Gold is the third largest gold investment scheme with assets 2,562 crore as of 30 November 2021.
The scheme was launched in 2009 and has given returns of -4.26% on one year basis, 13.77% on three year basis and 10.46% on 5 year basis.
Investors should note that gold is the only asset class to give negative returns on a one-year basis.
Nippon India ETF Gold BeES India Gold Plans With Assets 6,417 crore, followed by HDFC Gold ETF 2,865 crore.
Recently, another asset management company (AMC), Quantum Mutual Fund had announced a change in the face value of Quantum Gold Fund (QGF), making it more accessible to investors. The marked price of QGF was replaced by from 100 2. Accordingly, each unit represents approximately 1/100th of 1 gram of gold.
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