Smart Way to Invest Gold - Leadercare

1 SMART WAY TO INVEST IN GOLD 2 3 4 WHY INVEST IN GOLD 5 WHY INVEST IN GOLD Gold prices show less fluctuations and provide stable returns in the long run. [ low correlation with other key asset classes ] 6 WHY INVEST IN GOLD -150 -100 -50 0 50 100 150 200 Per cen t R etu rn s Great Depression World War 2 Arab Oil Embargo Japanese Stock Bubble Asian Crisis Dotcom Bust Sub Prime Crisis 1929 198919731939 200720001997 Gold ReturnsEquity Returns 7 WHY INVEST IN GOLD 8 GOLD IS A FUNDAMENTALLY DIFFERENT ASSET CLASS  Gold is an economically secure asset i.e. it is an asset which is no one’s liability & hence  No risk

of inflation  No risk of repudiation  Gold provides an incontrovertible liquidity unaffected by exchange controls or asset freezes  Gold has high public confidence  In the previous decade, most central banks have increased gold as a percentage of total reserves in apparent response to perceived uncertainty 0 20 40 60 80 Gold as a Percentage of Total Reserves Q1 2001 Q1 2010 $0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 Gold Price vs. Inflation Gold Price Inflation Index WHY INVEST IN GOLD 9 10 WHAT CUSTOMERS WANT WHICH IS THE OPTION THAT IS EASY TO BUY & EASY TO SELL ? CAN I SAVE ON PREMIUM AND MAKING CHARGES ? HOW TO EVADE THE RISKS OF THEFT & IF I CAN SAVE ON LOCKER CHARGES 11 12 CUSTOMER BENEFITS IT IS EASY TO BUY, AND EASY TO SELL I PAY NO PREMIUM OR MAKING CHARGES NO WORRIES OF THEFT & I SAVE ON LOCKER CHARGES 13 GOLD ETF (EXCHANGE TRADED FUND) Gold ETF are listed on NSE and can be purchased using a demat account. Buying GOLD ETF is purchasing gold just like you buy stock of any company from your broker. Every unit sold is backed by physical gold. 15 Type of fund Non Equity ETF Investment In underlying physical gold Taxation treatment Debt Unit ~1 gm of gold, typically Tick Size INR 0.01 Minimum Lot (on Exchange) 1 unit Minimum Lot (Direct) 1000 units Expense Ratio ~ 1.00 % Trade hours Same as cash market Price As determined on exchange Trade cycle T+2 Allocation Pattern 90 – 100% is GOLD 0 – 10% is Money market, securitized debts, bonds and cash at call GOLD ETF FEATURE SPECIFICATIONS 16 Name Inception Unit Size (gm) Gold BeES 15 Feb 2007 1.00 UTI-Gold ETF 1 Mar 2007 1.00 Reliance Gold ETF 15 Oct 2007 1.00 HDFC MF Gold ETF 25 Jun 2010 1.00 KOTAK Gold ETF 20 Jun 2007 1.00 SBI Gold ETS 30 Mar 2009 1.00 Axis Gold ETF 20 Oct 2010 1.00 ICICI Prudential Gold ETF 30 Jun 2010 1.00 RELIGAREGOLD 28 Jan 2010 1.00 Quantum Gold Fund 24 Jan 2008 0.50 TOTAL * As on End of March 2011, Source : AMFI website GOLD ETFs listed with NSE 10 GOLD ETFs that you can select from We recommend you contact...

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