Download - NFO Ppt GoldETF Final
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
1
Birla Sun Life Gold ETFAn Open-ended Gold Exchange Traded Fund
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
1. Investing in Gold
2. Gold: Rising Demand
3. Why Gold ETF
4. Birla Sun Life Gold ETF
5. Disclaimers, Statutory details & Risk Factors
Contents
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
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Investing in Gold
As an inflation hedge
As a portfolio diversifier
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
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When we have gold we are in fear
when we have none we are in danger.
- English Proverb
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
5
Mutual Fund investments are subject to market risksPlease read the SID & SAI carefully before investing
Gold is a symbol of wealth and good fortune
It is viewed as a secure, value preserver, and is the second preferredinvestment after bank deposits
It is a good instrument for diversifying your investment portfolio due toits low correlation with most other asset classes
Gold tends to rise in value during times of rising inflation, thusproviding an effective hedge against price increases in long-term
Gold
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
6
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Gold has traditionallyperformed well in periods ofrising inflation.
Returns from Gold in the last
decade (CY 2001 2010)have been well aboveinflation.
Gold: An effective inflation Hedge
Source: World Gold Council (WGC), Bloomberg
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
7
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Gold has a low correlation with most asset classes & markets.
This makes gold an excellent tool for diversifying your portfolio.
Gold: A portfolio Diversifier
1.00
-0.07 -0.05-0.18
0.08
-0.13
-0.05
-1.00
-0.50
0.00
0.50
1.00
Gold
LBMA
(INR/oz)
BSE 200 BSE
SENSEX
3-month
CD
MSCI EM MSCI US MSCI
India
Correlation to Gold (INR)
Source: World Gold Council Calculations in INR wherever applicable.Correlations based on 3 year weekly returns upto 24th Dec 2010
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Gold Demand - Supply
Rising Global Demand
High Demand in India & ChinaSuppliers turning into buyers
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8/6/2019 NFO Ppt GoldETF Final
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Driven by High Demand in India & China
= 52% ofworld demand
Source: WGC
India and China are not only the largest demand centers for Gold, but also seeingthe demand grow at a rapid pace.
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
In spite of rising prices, Indian jewellery demand rose 69% year-on-year, resulting ina new annual record total of 746 tonnes in 2010.
Gold jewellery represents about 75% of Indian gold demand for 2010
Gold: Rising Jewellery Demand in India
Source: WGC
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Gold: Rising Jewellery Demand in China
The estimated per-capita jewellery demand in China (2009) is extremely low at 0.26 gms, ascompared to its other Asian counterparts like South Korea & Taiwan (~ 1.2 to 1.4 gms).
However, as per a recent report, Chinas jewellery demand in 2010 is estimated to haveincreased by 13% to reach a new annual record of 400 tonnes, in spite of a rise in prices.
Source: World Gold Council (WGC). Includes both investment & jewellery demand.
Source: WGC
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
From 1989 to 2007 net official sector sales averaged 400-500 tonnes per year
In 2010, the official sector became a net buyer of gold for the first time in 21 years.
Emerging market economies experiencing rapid growth have been large buyers of gold, diversifying theirexternal reserves.
European central banks which for two decades had been selling gold have virtually stopped sales inthe wake of the financial and European sovereign debt crises.
These two forces have considerably reduced the supply of gold to the market.
Suppliers turning into buyers!
Net Sales / purch
ases of Gold by Official Sector (Tonnes)
Note: Official sector means central banks and other official institutions like IMF. Source: WGC
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Why Gold ETF?
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Ease of Purchase: Investors can purchase units directly from the AMC duringNFO period, and from the stock exchange during ongoing offer period.
Ease of Storage: Easier to hold Gold ETF units in a Demat form rather thanBuying physical gold and storing them in lockers, with the added risk of theft.
Assured for purity: The underlying gold is held in the form of 1kg Gold Barshaving purity of 99.5% or higher, sourced from LBMA^Approved Refiners.
Low Transmission losses: Lower charges incurred in buying-selling of gold ascompared to Jewellery which costs higher in form of making charges at the timeof purchase, and a high deduction at the time of selling the gold.
Tax benefit: Indexation benefit for Long Term Capital gains available after oneyear in Gold ETF, as against 3 years for Physical Gold. Moreover, Wealth Tax ispayable on Gold Jewellery and bars, but not on ETFs.
Why Gold ETF?
^ LBMA = London Bullion Market Association
(Note: Investors should be advised to consult their tax advisor in viewof individual nature of tax benefits before investing)
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
G d TF G d ns & s J w y
g qu m n Demat Account Locker / Safe Locker / Safe
Impu y R sk Not Possible Possible Possible
v b n m
n m n ns
1 unit can also bepurchased at market
price.
B
anks / Jewelers maycharge higher for
smaller coin sizes.
Depends on theJewelery design &
type.
T x n n P c
pp c n
upto 1 Yr STCG *
1Yr + LTCG* with
Indexation benefit
upto 3 Yr STCG
3Yr + LTCG with
indexation benefit
upto 3 Yr STCG
3Yr + LTCG with
indexation benefit
W h T x Not Applicable Applicable Applicable
Comparison
LTCG = Long Term Capital Gains,STCG = Short Term Capital Gains
(Note: Investors should be advised to consult their tax advisor in viewof individual nature of tax benefits before investing)
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
17
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Gold ETFs getting increasingly popular
Source: MFI Explorer, Internal Computation
Since 2007 the number of Gold ETF schemes in India have grown five fold, with ~15x increase inAssets Under Management.
The AUM has increased 2x in last 9 months, as against gold price increase of 10.4%, showing theinvestors increasing awareness and preference for ETFs as a medium of investing in Gold.
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
18
When we have gold we are in fear
when we have none we are in danger.
- English Proverb
Gold
ETF No
FearNo Danger
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8/6/2019 NFO Ppt GoldETF Final
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Birla Sun Life Gold ETF
Key Features
Benefits vs Physical GoldHow does it work?
NFO Details
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
20
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Scheme Name Birla Sun Life Gold ETF (BSL Gold ETF)
Investment Objective The investment objective of the Scheme is to generate returns that are in linewith the performance of gold, subject to tracking errors.
Scheme Type An Open ended Gold Exchange Traded Fund
Asset Allocation Physical Gold: 95% - 100%Debt & Money Market Instruments: 0% - 5% (including cash & Cash
Equivalents)Minimum Purchase
during NFO
Minimum of Rs. 6,000/- and in multiples of Rs. 2000/- thereafter perapplication
Benchmark The performance of the scheme will be benchmarked against the Domesticprice of physical gold.
Fund Manager Mr. Satyabrata Mohanty
Load Structure # Entry load: NilExit load: Nil (Including for fractional units)
Key Features
# The units of the scheme are compulsorily traded in dematerialized form, and hence, there shall be no entry/exit load for the unitspurchased or sold through stock exchanges. However, the investor shall have to bear costs in form of bid/ask spread andbrokerage or such other cost as charged by his broker for transacting in units of the scheme through secondary market.
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
21
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Potentially cheaper to have price exposure to gold price as compared to other
available avenues
Can be traded on stock exchange like buying / selling a stock. Quick and convenient
dealing through Demat account
No storage and security issue for investors
Transparent pricing
Taxation of non-equity Mutual Fund. No Wealth Tax.
Ideal for retail investors as minimum lot size to trade is one unit of Gold ETF whichis approximately equal to one gram of Gold.
Benefits vs Physical Gold
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Option to convert to Physical Gold# provided by certain vendors
Investors will be provided an option to convert from Demat form to Physical Gold bysome of our vendors
Benefit traditional savings in gold can be replaced by ETF at market price today
and investor can enjoy benefits of higher safety, easier holding/storage and lowertransmission loss to reconvert traditional jewellery at the time of need. At time ofneed ETF can be reconverted to physical Gold of highest purity at market price
Additional benefit of Birla Sun Life Gold ETF
# Birla Sun Life Asset Management Company Ltd. (BSLAMC) shall, for the convenience ofunitholders, endeavor to provide the updated list/details of the vendor/s to facilitate sucharrangement/s between the Unit holder and the vendor/s. The Unitholders may opt to enterinto the arrangement/s with the Vendor, on such terms as may be mutually agreeablebetween the unit holder and vendor. The Unit holder agrees and acknowledges that neitherBirla Sun Life Mutual Fund, its Trustees, nor BSLAMC shall, in any manner whatsoever, be
responsible and/or liable with respect to, or in connection with, any such arrangement/s.
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
Note: The role of the AMC is of a facilitator to the Authorized Participants / Large Investors to purchase /sell Gold on their behalf for the purpose of creating/redeeming Units of the scheme in Creation Unit Size.
How does BSL Gold ETF Work?
Here is an illustration on the working of Birla Sun Life Gold ETF.
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Birla Sun Life Gold ETF
New Fund Offer Opens on: 25thApr 2011
New Fund Offer Closes on: 09th May 2011
Scheme Re-opens on: Not later than 24th May 2011
NFODetails
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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This document is strictly confidential and meant for private circulation only and should not atany point of time be construed to be an invitation to the public for subscribing to the units ofBirla Sun Life Mutual Fund. Please note that this is not an advertisement. The document issolely for the information and understanding of intended recipients only. If you are not theintended recipient, you are hereby notified that any use, distribution, reproduction or any actiontaken or omitted to be taken in reliance upon the same is prohibited and may be unlawful.Views expressed herein should not be construed as investment advice to any party and are notnecessarily those of Birla Sun Life Asset Management Company Ltd.(BSLAMC) or any of theirofficers, employees, personnel, directors and BSLAMC and its officers, employees, personnel,directors do not accept responsibility for the editorial content. Wherever possible, all the figuresand data given are dated, and the same may or may not be relevant at a future date. Furtherthe opinions expressed and facts referred to in this document are subject to change withoutnotice and BSLAMC is under no obligation to update the same. While utmost care has beenexercised, BSLAMC or any of its officers, employees, personnel, directors make norepresentation or warranty, express or implied, as to the accuracy, completeness or reliability of
the content and hereby disclaim any liability with regard to the same. Recipients of this materialshould exercise due care and read the scheme information document (including if necessary,obtaining the advice of tax/legal/accounting/ financial/other professional(s) prior to taking of anydecision, acting or omitting to act. Further, the recipient shall not copy/circulate contents of thisdocument, in part or in whole, or in any other manner whatsoever without prior and explicitapproval of BSLAMC.
Disclaimers
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Disclaimer Clause of NSE
/ BSE
: It is to be distinctly understood that the permission given byNational Stock Exchange of India Limited (NSE) / Bombay Stock Exchange Ltd. (BSE) shouldnot in any way be deemed or construed that the Scheme Information Document has beencleared or approved by NSE/BSE nor does it certify the correctness or completeness of any ofthe contents of the Draft Scheme Information Document. The investors are advised to refer tothe Scheme Information Document for the full text of the Disclaimer Clause of NSE/BSE.
Statutory Details - Constitution: Birla Sun Life Mutual Fund has been set up as a Trust under
the Indian Trusts Act, 1882. Sponsors:Aditya Birla Financial Services Private Limited and SunLife (India) AMC Investments Inc. [liability restricted to seed corpus of Rs. 1 Lac]. Trustee:Birla Sun Life Trustee Company Pvt. Ltd. Investment Manager: Birla Sun Life AssetManagement Company Ltd.
Scheme Classification and Objective: Birla Sun Life Gold ETF: (An Open ended GoldExchange Traded Fund) with an investment objective to generate returns that are in line withthe performance of gold, subject to tracking errors.
Asset Allocation: Physical gold*: 95-100%, Debt & Money Market Instruments (including cash
& cash equivalent): 0%-5%. *The Scheme will invest in physical gold of the prescribed qualityand standard. Issue Price: Offer of Units at face value of Rs. 10 each at a premium equivalentto the difference between the allotment price and the face value during the New Fund Offer(NFO) and at NAV based prices for Creation unit on an ongoing basis. Allotment price for theNFO shall be approximately equal to 1 (one) gram of gold.
Disclaimers & Statutory Details
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Minimum Application amount: During NFO: Rs. 6,000/- and in multiples of Rs. 2,000/- thereafter. DuringOngoing Offer period: Units of scheme may be subscribed to / redeemed in Creation Unit size of 1,000units & in multiples thereof, by Authorised Participants and Large Investors on any business day directlywith the Mutual Fund at applicable NAV and transaction charges, if any. Terms of Issue/Liquidity: Unitsof the scheme shall be available and compulsorily be issued/repurchased and traded in
dematerialized form. The Units of the scheme will be listed on NSE and BSE and all categories ofInvestors may purchase the units of the scheme through the Stock exchange(s) on which the units of thescheme are listed on any trading day in round lot of 1 (one) Unit at the prevailing listed price. The Fund
may also allot fractional units for subscriptions / purchase requests received only during NFO of thescheme. These fractional units may be redeemed by unitholders on any business day during the ongoingoffer period at applicable NAV directly with Mutual Fund/AMC and these fractional units shall not beavailable for trading on Stock Exchange(s). Load Structure: Entry Load: Nil; Exit Load (including forfractional units): Nil. The units of the scheme are compulsorily traded in dematerialized form, and hence,there shall be no entry/exit load for the units purchased or sold through stock exchanges. However, theinvestor shall have to bear costs in form of bid/ask spread or brokerage or such other cost as charged byhis broker for transacting in units of the scheme through secondary market. Unitholder Information &
General Services: No separate account statement will be issued to the Unit holders since the statement ofaccount furnished by depository participant will contain the details of transactions. The AMC will calculateand disclose the first NAV of the scheme not later than 5 business days from the date of allotment.Thereafter, the NAV of the Scheme will be calculated on all business days.
Statutory Details
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
28
MutualF
unds and securities investments are subject to market risks and th
ere can be noassurance or guarantee that the objective of the Scheme will be achieved. As with anyinvestment in securities, the NAV of the Units issued under the Scheme may go up ordown depending on the various factors and forces affecting capital markets and moneymarkets. Past performance of the Sponsors / Investment Manager / Mutual Fund does notindicate the future performance of the Scheme and may not necessarily provide a basis ofcomparison with other investments. Birla Sun Life Gold ETF is only name of the Scheme anddoes not, in any manner, indicate either the quality of the Scheme or its future prospectsor returns. Unitholders in the Scheme are not being offered any guaranteed/assured returns.Scheme Specific Risk Factors:As the Scheme will invest primarily in physical gold, thescheme's performance shall relate directly to the value of the gold and fluctuations in the price ofgold could adversely affect investment value of the units. The price of gold may be affected byseveral factors such as demand and supply of gold in India, change in political, economicalenvironment and government policy, changes in interest rates and perceived trends in bullionprices, inflation trends, market movements, etc. The scheme shall also be subject to, but notlimited to, risks related to liquidity, regulatory, passive investments, redemption, trading, assetclass, currency, loss of physical gold, counter party, indirect taxation, etc. Further, tracking errormay cause the scheme to generate returns which are not in line with the performance of gold.The scheme may invest in debt and money market instruments to meet the liquidity
requirements. Accordingly, scheme shall be subject to risks associated with investments in FixedIncome securities such as Price-Risk or Interest-Rate Risk, Credit Risk, Liquidity or MarketabilityRisk, Reinvestment Risk etc. Please read the Scheme Information Document for detailedScheme Specific Risk Factors. Investors should read the Scheme Information Document /Statement of Additional Information / Key Information Memorandum available at InvestorService Centers and withDistributors carefully before investing. Please referwww.birlasunlife.com for further details.
Risk Factors
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Copyright: Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd.
Mutual Fund investments are subject to market risks
Please read the SID & SAI carefully before investing
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Thank You