Artha Bharat unveils GIFT City's first physical gold investment fund

Artha Bharat Investment Managers IFSC has launched GIFT City's first physical gold fund, with the scheme tracking international spot gold prices through LBMA-standard bullion

Artha Bharat Investment Managers IFSC, a $750 million fund management entity, on Friday announced the first physical commodity fund Artha Bharat FinMet Physical Gold Fund in GIFT City, India’s maiden International Financial Services Centre (IFSC).

 

The scheme is in partnership with Singapore-based precious metals specialist FinMet, which serves as the investment advisor for the open-ended passive fund.

 

The fund will track international spot gold prices and allocate at least 95 per cent of its assets to London Bullion Association (LBMA) standard gold bars traded on the India International Bullion Exchange (IIBX) in the GIFT-IFSC.

 

The scheme offers weekly subscriptions and redemptions with a total expense ratio of 0.65 per cent per annum. The physical gold will be stored in India International Depository IFSC (IIDI) insured vaults.

 

 

"Investors will have an option to receive certified physical gold bars or equivalent cash when they wish to redeem their units in the scheme," said Sachin Sawrikar, the entity’s managing partner.

 

The scheme will invest in physical gold stored in India International Depository IFSC insured vaults within GIFT City and regulated by the IFSCA.

 

“Our fund will be the first institutional investment vehicle to use IIBX and IIDI vaults not for import, but for holding gold as a long-term financial asset,” he added.