Kotak Mahindra which is one of the biggest private banks with operations in almost all aspects of Finance like Investing Banking,Wealth Management has launched a good Gold ETF products as well.It is an open-ended gold Exchange Traded Fund, which invests in physical gold and tracks the domestic spot price of gold as closely as possible. Units of the scheme listed on stock exchanges and can be easily traded in demat form. Each unit of the scheme is approximately equal to 1 gram of gold. Units of the schemes are backed by physical gold held by the Custodian – Scotia Macotta. All physical gold held with Scotia Macotta conforms to the London Bullion Market Association’s (LBMA) rules for Good Delivery.
The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error.