HDFC GOLD FUND - NFO

Why invest in Gold ?

• To effectively diversify portfolio: Gold’s most valuable contribution to a portfolio lies in the fact that it has a low correlation with most other asset classes. This is due to the fact that the factors affecting the price of gold differ from those that influence the price of most other asset classes.

Why invest in HDFC Gold Fund (HGF)?

• Investment Objective: To seek capital appreciation by investing in units of
HDFC Gold Exchange Traded Fund (HDFC GETF).

The following benefits are available:

• Demat account not mandatory: Investors can invest in HGF through the regular process of subscription i.e. in physical mode. The subscription through demat mode is an option for the investor but not a mandate to invest in HGF.

• Convenience of lumpsum buying / SIP/selling directly with the FUND:

Like any other mutual fund scheme an investor can buy, sell, enroll for SIP/STP/SWAP in HGF.
• Cost Effective: Investing in HGF in physical mode enables you to invest at a lower cost as the investor does not have to incur the charges for the demat account and brokerage . However , the investors will have to bear the recurring expenses of the scheme, in addition to the expenses of the underlying scheme.
• Liquidity: Investor can subscribe or redeem the units of HGF on all business days directly with the Fund.
• Taxation: Investment in HGF units will attract the benefits of long term capital gain tax after 1 year of holding, whereas for physical gold the benefit of long term capital gain is available after 3 years of holding. No wealth tax is applicable on the value of the holdings of HGF units.