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Gold BeES stand for Gold Benchmark Exchange Traded Scheme. Gold BeES are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that participation through the trading of a security on National stock exchange. Gold BeES is designed to provide returns that, before expenses, closely correspond to the returns provided by physical Gold. Each unit is approximately equal to the price of 1 gram of Gold.
The above points can be better represented through the table below
Comparison of Investment in Gold through Jeweller, Bank and GoldBeES:
|No.||Parameter||Jeweller||Bank (Bars/Coins)||Gold BeES|
|1||Purchase and sale||Physical Form||Physical Form||Dematerialized Form|
|2||Pricing||May differ from jeweller to jeweller||May differ from bank to bank||Linked to international gold prices|
|3||Buying Premium above gold price||Likely to be More||Likely to be More||Likely to be Less|
|4||Making Charges||Are involved||Are involved||Not involved|
|5||Impurity Risk||May exist||May exist||Cannot exist|
|6||Storage Requirement||Locker||Locker||Demat Account|
|7||Security of Asset||Investor Responsible||Investor Responsible||Taken care of by Fund House|
|8||Resale||At Deep Discount||May not be possible||At transparent Secondary Market Prices|
|9||Convenience in buying , storage and selling||Less-As physical movement & transfer involved||Less-As physical movement & transfer involved||More- Totally Demat|
|11||Long term Capital gain tax||Only after 3 years||Only after 3 years||After 1 year|
The minimum amount of investment during NFO for Cash is Rs.10, 000 and in multiples of Rs.1,000 Thereafter Each unit of Gold BeES being offered will have a face value of Rs.100/- each and will be issued at a premium equivalent to difference between allotment price and the face value of Rs.100/-
Once listed on the NSE, 1 unit of Gold BeES will represent approximately 1 Gram of gold and investors can buy or sell units on the secondary market (National Stock Exchange of India Ltd.) The minimum number of units that can be bought or sold is 1 (one) unit.
• A trading account with an NSE Broker
• A Demat Account as Gold BeES can be settled only in Demat form
Only in Demat account with T+2 rolling settlement.
A. New Fund Offer Entry Load Slabs will be as below :
Entry Load Slabs will be as below :
|Rs. 10,000 to Rs. 49,99,000||1.5%|
|Rs. 50,00,000 to Rs. 1,99,99,000||1.0%|
|Rs 2,00,00,000 to Rs 4,99,99,000||0.5%|
|Rs. 5,00,00,000 and above||Nil|
There will be no exit load charge by the Fund
B. Ongoing Basis:
There will be no entry / exit load charge by the Fund
The total expense ratio will be maximum of1% per annum.
Since Gold BeES is classified under Mutual Fund, Investor investing in this need not pay Wealth Tax. The scheme will have Non equity Mutual Fund Taxation, applicable as per current Tax laws, which investor has to pay after redemption.
The investment objective of Gold Benchmark Exchange Traded Scheme (Gold BeES) is to provide returns that, before expenses, closely correspond to the returns provided by domestic price of gold through physical gold.
Market Price will be linked to the London Bullion Market Association AM fixing price on that particular day in US$/troy.
Benchmark Asset Management Company Pvt.Ltd.is a SEBI approved Asset Management Company & is :
Yes, Bank of India has RBI approval to retail gold/bullion to its customers.
Pure Gold Coins will be sold in the form of round, oval and rectangular bars.
Currently Pure Gold Coins will be available in 4 g, 5 g, 8 g, 10 g, 20 g and 50 g weight.
Bank will sell the gold coins through its CBS branches.
Pure Gold Coins will be of 24 Karat, 999.9% purity gold.
The gold Coins are packed in tamper - proof certicard packs that are see through at the manufacturing stage itself to prevent any damage / theft during transit. Moreover, the gold Coins sold by the Bank come with an "Assay Certification" indicating the highest quality of gold at 999.9% purity as per international standards.
Both, Bank of India Customers and non-customers are eligible to buy gold coins. However, Bank of India customers can issue a cheque from their any operative SB/CD/OD/ account or provide a debit mandate towards purchase of gold coins.
The price will depend upon the market rate of gold.
Bank of India does not buy gold coins sold by them. You can sell it to any jeweller.
You can buy gold through any Bank of India branch (Core Banking Branch) by following these simple steps :
No documents are required for the purchase of Gold coins/bars with value less than Rs. 20,000. For purchase of Gold coins/bars from Rs. 20,000 to Rs. 50,000, an Identity proof required. If the transaction value is above Rs. 50,000 PAN card copy and an Identity proof of the customer would be required.