2. Why Gold?
Long Term Returns Gold – A Safe Haven
Gold in USD/oz
Hedge Against Inflation
*DJIA; **MSCI World Index
Gold has beaten the
headline inflation 8 out
of 10 times
2
3
04
5
6
7
8
9
0
1
’0
’0
’0
’0
’0
’0
’0
’1
’1
’
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
Source: Bloomberg; CPI – India CPI Data; Gold in INR
Past Performance of gold as mentioned above may or may not be sustained in the future.
Protects you against gold price movements
2

3. Consumption of Gold
Gold is regarded as a symbol of wealth in Indian households
Gold has ritual, religious and sentimental values attached. Indians buy Gold on festive
Occasions: Akshay Tritiya, Dhanteras, Dussera or any other auspicious occasion.
Weddings are incomplete without Gold.
Accumulation starts with the new born child
Gold symbolizes security, Gold for centuries has been regarded as a safe haven in India
In India, gold has been accumulated and passed from generation to generation
• At more than 18,000 tonnes, Indian households hold the largest stock of gold in the world
• Gold purchases in India accounted for 32% of the global total in 2010
• Large stable demand; two-thirds of India's gold demand comes from Semi Urban and Rural India which constitutes
70% of the Indian population
Source: World Gold Council
We Love Gold, almost every Indian home has a little of Gold
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4. How we have held Gold?
Gold Coins & Bars
Gold Jewellery
Protects you against gold price movements
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5. Modern form of Holding Gold
Gold Futures & Options
Gold ETFs
IDBI Gold Fund
Protects you against gold price movements
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6. Gold: Gaining Ground as
Prudent Investment
• Preserver of Value & Buying Power
• Hedge Against Inflation & Economic Down-turn
• Adds stability to the Investment portfolio
• Asset Allocation Avenue - Diversification
Protects you against gold price movements
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7. Who Are the Largest Official Holders?
Central banks of various countries
Central Banks Holdings Tonnes % of Reserves
United States 8133.5 75.3%
Germany 3396.3 72.3%
IMF 2814.0 -
Italy 2451.8 71.9%
France 2435.4 72.0%
China 1054.1 1.7%
Switzerland 1040.1 16.9%
Russia 895.8 9.1%
Japan 765.2 3.2%
Netherlands 612.5 60.2%
India 557.7 9.9%
ECB 502.1 33.3%
Taiwan 422.4 5.7%
Portugal 382.5 90.6%
Adds Stability: Relied upon by Central banks
As of June 2012; *As of Sept 2011
Source: World Gold Council, gold.org, International Monetary Fund
Protects you against gold price movements
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8. Prudent Asset Allocation
The performance of Gold as an asset class has been impressive, even over the long haul, hinting at the fact that it would make sense to
have a part of your investments in Gold
Source: World Gold Council; 30th Dec., 2011
In times of: This Asset generally
outperforms:
Inflation Gold
Deflation Bonds
Prosperity Stocks
Recession Gold / Cash
• Gold is a hedge against uncertainties and Inflation
• Gold provides stability to an investment portfolio
• Recommended Allocation - atleast 15% of your portfolio to gold provides ideal diversification and
protection in case of downturns
Protects you against gold price movements
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9. Asset Allocation - Benefits
Nifty Gold Bond Cash
Asset Allocation 1 35% 15% 35% 15%
Asset Allocation 2 40% 10% 35% 15%
Asset Allocation 3 45% 5% 35% 15%
Source: Bloomberg; Ace MF; weekly data as of 22/6/2012
Reference: Equity - Nifty, Bond : Crisil Bond Index, Cash : Crisil Liquid Index and Gold: MCX price
Past Performance of gold as mentioned above may or may not be sustained in the future.
Protects you against gold price movements
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10. Introducing
IDBI Gold Fund
Fund seeks to provide returns that closely Ease of Investment
correspond to the returns provided by IDBI • Invest in lump sum for as low as Rs. 5000/-
Gold Exchange Traded Fund, which in turn • Invest regularly through our SIP / STP option.
invest in physical gold of 995 purity (24 carat) Frequency – Daily & Weekly (under STP only),
Monthly & Quarterly (SIP / STP)
Ease of Delivery Ease of Redemption
• Direct credit of Gold Fund units to • Direct credit of redemption
your MF account statement proceeds to your Bank account
Ease of Transaction Ease of Holding
• Any one can invest directly • No Storage Charges
in IDBI Gold Fund • No worries of Theft
• No Demat account required • No Wealth Tax
Simplest Way To Own GOLD
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11. Investment & Redemption Flow
Creation Process
• C1 – Investor Invests in IDBI Gold Fund & gets corresponding units of IDBI Gold
Fund
R3 C1 • C2 – IDBI Gold Fund in turn invests in the IDBI Gold ETF and holds units of IDBI
Gold ETF
• C3 – Physical Gold is bought by IDBI Gold ETF and held with the custodian.
- Hence each investor holds physical gold proportionate to his investment
amount with a purity of 995 (24 Carat approx)
Redemption Process
• R1 – On redemption, Gold held by the custodian is sold and the cash proceeds
are credited to IDBI Gold ETF.
R2 C2 • R2 – IDBI Gold Fund sells units in IDBI Gold ETF and gets the cash proceeds from
IDBI Gold ETF.
• R3 – IDBI Gold Fund in turn transfers the redemption amount to the investor
corresponding to the NAV .
- The redemption amount includes the appreciation in gold price over the
holding period
> For smaller investment/redemption amount (less than 1000 ETF units) the ETF units can
R1 C3 also be bought/sold on the stock exchange.
• Investor can invest minimum Rs. 5000/- as lump sum or Rs.500/- through SIP / STP Route
• Direct purchase and sale of the units at the AMC through open-ended IDBI Gold Fund
• Uniform purchase and sale price at NAV
Protects you against gold price movements
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12. Benefits of Investing in
IDBI Gold Fund
Fractional
Holding of Gold
is Possible Benefits of Investing in
IDBI Gold Fund
Invest in Gold at
Lowest Possible No need of
Price with Low Demat Account
Margin
Protects you against gold price movements
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13. Gold – A Wealth Creator
• For a SIP amount of Rs 5000/- per month
10 yr 7 yr 5 yr 3 yr 1 yr
Amount invested (Rs.) 6,00,000 4,20,000 3,00,000 1,80,000 60,000
SIP Start Date 1st June 2002 1st June 2005 1st June 2007 1st June 2009 1st June 2011
Returns 21.78% 23.87% 25.06% 25.43% 18.17%
Investment Value 1,897,688 983,696 558,155 260,370 65,780
Equivalent gms of gold 693.4 359.4 203.9 95.1 24.0
Note: Gold Prices are in USD/oz converted to INR; Source: Bloomberg
For a SIP of 5 yrs, an investor could have accumulated over 200 gms of gold and in the process getting a
return of over 25% per year for his investment
Gold equivalent to gms. of gold – Gold price as on May 31, 2012
Returns calculated on monthly SIPs in gold in INR and hence different from slide 2
Past Performance of gold as mentioned above may or may not be sustained in the future.
Protects you against gold price movements
13

14. Gold – A Wealth Creator
• For Lump sum Investments
10 yr 7 yr 5 yr 3 yr 1 yr
Amount invested (Rs) 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
Investment Date 1st June 2002 1st June 2005 1st June 2007 1st June 2009 1st June 2011
Returns (CAGR) 18.57% 25.23% 26.84% 24.01% 27.15%
Investment Value 5,49,366 4,83,032 3,28,344 1,90,721 1,27,147
Equivalent gms of gold 200.7 176.5 120.0 69.7 46.5
Note: Gold Prices are in USD/oz converted to INR; Source: Bloomberg
Gold equivalent to gms of gold – Gold price as on May 31, 2012
Returns calculated for gold in INR and hence different from Slide 2
Past Performance of gold as mentioned above may or may not be sustained in the future.
Protects you against gold price movements
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15. Comparison of Gold Fund &
other Gold Instruments
Benefit Physical Gold Commodity Exchange Gold ETF Gold Fund
Quality Varies High High High
Cost of Holding High Low Low Low
Risk of Theft Yes No No No
Wealth Tax Yes No No No
Long Term Cap Gain Tax After 3 Years No (Speculation or trading) After 1 yr After 1 yr
Auto SIP Facility No No No Yes
Fragment Holding Yes No No Yes
Purchase Price Dealer Price Market Price Market Price NAV Related Price
Protects you against gold price movements
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16. SIP in a Gold Fund VS
Gold Retailer’s Scheme
Gold Fund Gold Retailer's Scheme
Open ended scheme with a perpetual SIP option – Only limited period (1 – 3 years) facility available in the market – No
Protects against gold price movement medium/long term price protection
Easy Entry & Exit Easy Entry but on premature exit- appreciation benefit is limited
Settlement in Value terms Settlement through in house jewellery only
Acquisition Margin on Gold - Low Acquisition Margin on Gold - High
Wealth Tax Not applicable Wealth Tax applicable
Invest in 99.5% purity (24 Carat) Gold
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17. Scheme Features
Investment Details To generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund.
Asset Allocation Indicative Allocation
Instruments Risk Profile
Min. Max.
Units of IDBI Gold Exchange Traded Fund 95% 100% Medium to High
Reverse Repo / Short-Term Fixed
Deposits / Money Market Instruments
0% 5% Low
and in IDBI Liquid Fund Scheme of IDBI
Mutual Fund
Minimum Investment Rs. 5000 and in multiples of Re.1
Additional Investment Rs. 1000 and in multiples of Re. 1
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18. Scheme Features (Cont’d)
Load Structure - Entry Load : Not Applicable
- Exit Load: 1% for exit within 12 months from the date of allotment
during NFO and on an ongoing basis (Redemption /switch-out/Transfer/
Systematic Withdrawal Plan)
Plan Growth Option Only
Benchmark Domestic price of Gold
SIP Frequency Monthly & Quarterly
Min. SIP Installments • Rs. 500 and in multiples of Re.1 thereafter for a minimum period of 12
months OR
• Rs. 1000 and in multiples of Re. 1 thereafter per month for minimum
period of 6 months
• Rs 1,500 and in multiples of Re.1 thereafter per quarter for a minimum
period of four quarter.
Systematic Transfer Daily, Weekly, Monthly & Quarterly options
Plan (STP)
Systematic Available
Withdrawal Plan (SWP)
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19. Disclaimer
Statutory Details: IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. with
IDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and
with IDBI Asset Management Ltd. as the Investment Manager. Risk Factors: AMC / Trustee /
Sponsor is not liable or responsible for any loss or shortfall resulting from the operations of the
scheme. Mutual Fund Investments are subject to market risks, read all scheme related
documents carefully. For further information please contact: IDBI Asset Management Ltd., 5th
Floor, Mafatlal Centre, Nariman Point, Mumbai- 400 021.
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20. Thank you
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