Gold funds provides inflation beating growth over the long term and is suitable for investment objectives with duration specific to the chosen fund.
11 Years. The Fund has Sufficient history for analysis and the track record is good.
1,300 Cr. Medium within the category
Superior. The category has a superior investment outlook
Consistency Of Performance
Relatively moderate. The historical performance of the fund has been OK
NAV (Jun 28)
6 Month CAGR
The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.
Launched (11y ago)
Mar 25, 2011
AUM in Crores
Price of Gold TR INR
with step up of
|Instrument||Returns||Total Corpus||Gains||Annualised %|
Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.
kotak gold etf98.5%
net current assets/(liabilities)0.2%
|Fund Name||Scripbox Opinion||Fund Size||Track Record|
Kotak Mahindra Asset Management Co Ltd
Kotak Mahindra Asset Management Co Ltd manages assets worth 288,952 crores and was set up on 5 August 1994. It's current offering of mutual fund schemes includes 40 equity,164 debt and 26 hybrid funds.
|Fund Name||Scripbox Opinion||Till Date CAGR|
Kotak Gold Fund (Growth) is an open ended Fund of Funds Scheme investing in Units of Kotak Gold Exchange Traded Fund. The returns earned on the Kotak Gold Fund (Growth) are in line with physical gold over the medium to long term, subject to tracking error. Hence, the scheme’s performance is completely dependent on the performance of the Kotak Gold Exchange Traded Fund. The prescribed asset allocation for the scheme is 95% to 100% towards Units of Kotak Gold Exchange Traded Fund. The remaining asset allocation of the corpus is towards fixed income securities such as Reverse repo and /or Triparty Repo on Government Securities or Treasury Bills and/or short-term fixed deposits and /or money market instruments.
The investment objective of Kotak Gold Fund (Growth) is to generate returns by investing in units of Kotak Gold Exchange Traded Funds (ETFs). However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. In agreement with the investment objectives, the asset allocation of the corpus is towards Units of Kotak Gold Exchange Traded Fund and fixed income securities.
Kotak Mutual Fund launched the Kotak Gold Fund (Growth) on March 25, 2011. The fund has been in existence for the past 11 years.
NAV and Returns – The NAV of the fund as of 8th April 2022 is Rs 21.05. The risk-o-meter of the fund is moderately high. Hence, an investor must understand that their principal investment amount will be at moderately high risk. Owing to the fund’s objective, it invests a minimum of 95% of its assets in units of Kotak Gold ETF. Since its inception, the scheme has delivered a return of 7%.
Minimum Investment – The minimum amount for a lump sum investment is Rs 5,000. For a SIP the minimum investment amount is Rs 1,000.
Plans and Options – The scheme provides direct as well as regular investment plans. The payout options are Income Distribution cum capital withdrawal option (IDCW), Reinvestment of Income Distribution cum capital withdrawal option (IDCW) & Growth (applicable for all plans).
Expense Ratio and Exit Load – The fund charges an expense ratio of 0.53% on the units of the mutual funds. The fund charges an exit load. The investor can redeem 6% of the units before the expiry of 1 year from the date of allocation. An exit load of 1% is applicable for the redemption of units in excess of this 6% of the units within 1 year from the date of allotment of units of the fund. Moreover, the redemption of units would be done on a First in First out Basis (FIFO). The investors of the Scheme will bear dual recurring expenses and possibly dual loads, viz, those of the Scheme and those of the underlying Scheme. As a result, the pre-tax returns received by investors under the Scheme may be lower than those obtained by investing directly in the underlying Schemes in the same amounts.
Fund Manager – Abhishek Bisen manages the fund. Mr. Bisen is a BA in Finance and an MBA in Finance. Before joining Kotak Mutual Fund, he worked at Securities Trading Corporation Of India Ltd, where he was responsible for Fixed Income Product Sales and Trading as well as Portfolio Advisory. He also has 2 years of merchant banking expertise with a renowned merchant banking organization under his belt.
Other Details – There is no lock-in period for the scheme. So, an investor can redeem an investment anytime without any redemption limit. As of 8th April 2022, the AUM of Kotak Gold Fund (Growth) is Rs 1,264.416 cr. The fund benchmarks to Price of Gold TR INR. This fund is meant for investors with a minimum investment horizon of 5 years.
Scripbox recommends Kotak Gold Fund (G) for investment within the gold mutual fund category. A gold mutual fund invests primarily in either gold exchange traded funds or stocks of companies that are engaged in mining, refining, or marketing gold and/or gold products.
Moreover, the fund is suitable for an investment duration of 5 years or longer to fulfil these investment goals.
Kotak gold fund tracks performance of Gold. The fund invests in units of Kotak Gold Exchange Traded Fund. The fund is one of the largest assets under management funds in the category. Its AUM stood at Rs 1224 Cr as of Feb 2022.
According to scripbox selection methodology, the fund got the highest quarterly outperformance count among all funds in the category. It’s a parameter that is considered to measure the consistency of funds’ performance. In addition, the fund has a low expense ratio.
This gold fund has delivered a compounded annual growth rate (CAGR) of 13% return during the last four-year period. This is much better than other gold schemes in the same period
|Asset Type (Gold vs Others)||Weightage|
|Kotak Gold ETF||98.40%|
|Net Current Assets / Liabilities||0.20%|
The scheme’s investment goal is to create returns by purchasing units of Kotak Gold Exchange Traded Funds (ETFs). To meet its investment goal, the scheme will primarily invest in Kotak Gold ETF units. According to the asset allocation, the scheme will also invest in debt and money market securities. The investment strategy would be primarily passive. The AMC will make every effort to ensure that the returns of the Kotak Gold Fund match those of the underlying ETF. Hence, it is suitable for an investor who seeks exposure to gold. Moreover, it is suitable for investment objectives with a duration specific to the chosen fund.
The NAV of Kotak Gold Fund (Growth) as of 8th April 2022 is Rs 21.05.
The Kotak Gold Fund (Growth) charges an expense ratio of 0.53% on the units of the mutual funds.
The Kotak Gold Fund (Growth) charges an exit load. The investor can redeem 6% of the units before the expiry of 1 year from the date of allocation. An exit load of 1% is applicable for the redemption of units in excess of this 6% of the units within 1 year from the date of allotment of units of the fund. Moreover, the redemption of units would be done on a First in First out Basis (FIFO).
On redemption of the units of Kotak Gold Fund (Growth) capital gain arises for the purpose of taxation. Capital gain is taxable as per the holding period of the capital asset which is the units of the fund. Since the fund is not equity oriented the holding period for the fund is 3 years for the purpose of long term and short term gains. If the units are sold after the expiry of 3 years the long term capital gain arises. Long term capital gain is taxable at a flat rate of 20% after providing the benefit of indexation. If the taxpayer sells the units before 3 years then short term capital gain arises. The short term capital gain is taxable at the slab rate. Hence the gain is added to the gross total income for the financial year.