JioBlackRock Mutual Fund has filed a draft document with Sebi for a gold ETF. JioBlackRock Gold ETF will be an open ended scheme replicating / tracking domestic price of gold.

The investment objective of the fund will be to generate returns that are in line with performance of physical gold in domestic prices, subject to tracking errors. The exit load will be nil on this gold ETF.

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The minimum application amount for lumpsum investment will be Rs 500 and in multiples of Re 1 thereof. Units will be allotted in whole figures and the amount for the fractional units will be refunded.

The fund will allocate 95-100% in gold and gold-related instruments as may be specified by SEBI and 0-5% in debt and money market instruments (including units of mutual funds). The fund will be managed by Tanvi Kacheria and Haresh Mehta.

The performance of this gold ETF will be benchmarked against the Domestic Price of Gold . The maximum base expenses ratio (BER) permissible under Regulation 66 will be upto 0.90%.

The redemption of units of the scheme in creation unit size will be allowed both by means of exchange of portfolio deposit and by cash. Additionally, transaction handling charges, if any, will have to be borne by authorised participants / market makers, large investors.

The principal invested in the fund will be at high risk according to the riskometer of the fund similar to the principal invested in the benchmark.

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Last month, the fund house filed a draft document with Sebi for JioBlackRock Income Plus Arbitrage Omni which is open for subscription under its NFO period and will close on October 19.

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