HDFC Gold Fund - HDFC Mutual Fund

HDFC Gold Fund (An open ended Fund of Fund Scheme investing in HDFC Gold Exchange Traded Fund) “Gold is a wonderful thing! Whoever possesses it is the lord of all he wants. By means of gold one can even get souls into Paradise” - Columbus, 1503 Gold as an investment avenue Why invest in Gold? To effectively diversify the portfolio Presenting HDFC Gold Fund (An open ended Fund of Fund Scheme investing in HDFC Gold Exchange Traded Fund) Investing in Gold Simplified HDFC Gold Fund* is suitable for the following types of investors: Investors looking for a exposure to gold as an asset class Investors who find investing in Gold ETFs cumbersome Small investors who cannot approach the mutual fund

directly in a Gold ETF because of the lot creation size Investors who do not have a demat account Investors wanting to invest through the Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) route * The investor will bear the recurring expenses of the scheme in addition to the expenses of underlying scheme. Comparison of HDFC Gold Fund (HGF) with Physical Gold (An illustrative chart) Parameter Jeweller Bank HGF How gold is held Physical (Bars / Coins) Physical (bars / Coins) Units Pricing Differs from one another. Neither transparent nor standard Differs from bank to bank. Not standard Linked to the prices of HDFC Gold ETF. The ETF is linked to international gold prices and is very transparent. Buying premium above gold price Likely to be more Likely to be more Likely to be less Impurity risk High Nil Nil Storage requirement Locker / Safe Locker / Safe None Security of asset Investor is responsible Investor is responsible Fund house takes the responsibility Resale Conditional and uneconomical Banks do not buy back At NAV Based Prices Convenience in buying / selling Less convenient, as gold needs to be moved physically Less convenient, as gold needs to be moved physically More convenient, as can be bought from and sold to the mutual fund at applicable NAV Quantity to buy / sell Available in standard denomination Available in standard denomination Minimum application amount is Rs 5000 and any amount thereafter Bid Ask Spread Very High Can’t sell back N.A. Risk of theft Yes, possible Yes, possible No, not possible Wealth tax Yes Yes No Long term capital gains tax Only after 3 years Only after 3 years After 1 year SIP/STP/ Flex STP Facility N.A. N.A Available Product Features Type of Scheme An Open Ended Fund of Fund Scheme investing in HDFC Gold Exchange Traded Fund Investment Objective To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund ( HGETF) Liquidity The Scheme being offered is open-ended scheme and will offer Units for Sale / Switch-in and Redemption / Switch-out on every Business Day on an ongoing basis. Commencing not later than 5 business days from the allotment of units of the Scheme. New Fund Offer Price Offer of units at ' 10/- during the NFO period Benchmark Domestic price of physical gold. Load Structure Entry Load: Not Applicable Exit Load 2% if redeemed /switched out before 6...

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