Scheme Features

Scheme Name	Birla Sun Life Gold ETF
Nature of scheme	An Open ended Gold Exchange Traded Fund
Scheme Objective	The investment objective of the Scheme is to generate returns that are in line with the performance of gold, subject to tracking errors.
Asset Allocation and Investment Pattern	Physical gold: 95% - 100% Debt & Money market instruments: 0% - 5% (including Cash and Cash Equivalent)
Investment Strategy	Birla Sun Life Gold ETF is a passively managed fund tracking the price of Gold and reflects the performance of the Gold price. The Fund would invest in physical gold of prescribed quantity and quality (fineness) and endeavor to track the spot price of gold. The scheme invests in gold regardless of investment merit. The Fund would invest upto 100% in physical Gold and/or upto 5% in debt and money market instruments to meet the liquidity requirements, subject to tracking error. The scheme may buy or sell gold at different points of time during the trading session at the then prevailing prices which may or may not correspond to its closing price, due to disinvestments to meet redemptions, transactions cost and recurring expenses, execution of large buy/sell orders etc. The Fund Manager would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible. Under normal circumstances, such tracking errors are not expected to exceed 2% per annum. However, this may vary due to the volatility in the markets and any other reasons beyond the control of the Fund Manager. There can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error relative to performance of the benchmark Index. Effect of Movements in the price of gold on the NAV of Birla Sun Life Gold ETF As movements in the price of gold are expected to directly affect the NAV of the scheme investors should understand the impact of fluctuations in the price of gold on the NAV of the scheme. Investors, however, should also be aware that past movements in the gold price are not indicators of future movements. Risk Control The Mutual Fund has built adequate internal risk management controls and safeguards including on-going oversight to ensure that the Scheme, which is passively managed, is in line with the defined investment objectives as per the SID and in compliance with SEBI (MF) Regulations. The Mutual Fund will strive to achieve the investment objective by way of a judicious portfolio mix comprising of Gold bullion, Debt Securities and Money Market Instruments. Investments in gold bullion would be primarily assessed with regard to its fineness. Every investment opportunity in Debt Securities and Money Market Instruments would be assessed with regard to credit risk, interest rate risk and liquidity risk. While these measures are expected to mitigate the above risks to a large extent, there can be no assurance that these risks would be completely eliminated. TRACKING ERROR While the objective of the Scheme is to closely track the price of Physical Gold, the performance may not be commensurate with the Price of Gold on any given day or over any given period. Such variations are commonly referred to as the tracking error. Tracking errors may cause the scheme to generate returns which are not in line with the performance of the underlying benchmark and may arise from a variety of factors including but not limited to: • Any delay experienced in the purchase or sale of Gold due to Illiquidity of gold, Delay in realization of sale proceeds, Creating a lot size to buy the required amount of gold. • The charging of expenses to the scheme including investment management fees, custodian fees, taxes, levies, etc. • The potential for trades to fail, which may result in the Scheme not having acquired gold at a price necessary to track the index. • The holding of a cash position prior to distribution and accrued expenses. • Execution of large buy/sell orders • The Scheme may buy or sell gold at different points of time during the trading session at the then prevailing prices which may not correspond to its closing prices. • Disinvestments to meet redemptions, recurring expenses, etc.
Fund Manager	Mr. Satyabrata Mohanty
Investor Risk Profile	Low to Medium
Risk Profile of Scheme	Mutual Fund Units involve investment risks including the possible loss of principal. Please read the Scheme Information Document carefully for details on risk factors before investment. Scheme specific Risk Factors include but are not limited to the following: Liquidity Risk: Trading in units of the scheme on the Exchange may be halted because of market conditions or for reasons that in view of the Exchange authorities or SEBI, trading in units of the scheme is not advisable. In addition, trading in units is subject to trading halts caused by extraordinary market volatility and pursuant to Stock Exchange(s) and SEBI ''circuit filter'' rules as applicable from time to time. There can be no assurance that the requirements of the exchange/s necessary to maintain the listing of units of the scheme will continue to be met or will remain unchanged. The Mutual Fund scheme has to sell gold only to bullion bankers/traders who are authorized to buy gold. Though, there are adequate number of players (commercial or bullion bankers) to whom the Fund can sell gold. However, the Fund may have to resort to distress sale of gold if there is no or low demand for gold to meet its cash needs of redemption or expenses. Counter party Risk: There is no Exchange for physical gold in India. The Mutual Fund may have to buy or sell gold from the open market, which may lead to counter party risks for the Mutual Fund for trading and settlement. Redemption Risk: Investors may note that even though this is an open ended scheme, the Scheme would repurchase units in creation unit size only. Thus, if the unit holding is less than the creation unit size then it can be sold only through the secondary market on the exchange where the units are listed, subject to rules and regulations of the Stock Exchange. The AMC will appoint Authorised Participant(s) to provide liquidity in secondary market on an ongoing basis. The Authorised Participant(s) would offer daily two-way quote in the market. Further the price received upon redemption of units may be less than the value of the gold represented by them. The above are few of the risks involved with investments in the scheme. Further, the scheme shall be subject to, but not limited to, risks associated with investments in physical gold, currency risk, operational risks, market risks, regulatory risk etc. The scheme may invest in debt and money market instruments to meet the liquidity requirements. Accordingly scheme shall be subject to risks associated with investments in Fixed Income securities such as Price-Risk or Interest-Rate Risk, Credit Risk, Liquidity or Marketability Risk, Reinvestment Risk etc. Please refer to Scheme Information Document for detailed scheme specific risk factors.
Investment Plans / Options	None
Minimum Application amount	During New Fund Offer Period: Minimum of ` 6,000/- and in multiples of ` 2,000/- thereafter per application. During Ongoing Offer period: • For Subscription / Redemption of units directly with Mutual Fund: Subscription / Redemption facility directly with the Mutual Fund would be restricted to Authorized Participants and Large Investors. Units of scheme may be subscribed to / redeemed only in Creation Unit size & in multiples thereof. Authorised Participants and Large Investors may subscribe to/redeem the units of the scheme on any business day directly with the Mutual Fund at applicable NAV and transaction charges, if any, by depositing/receiving physical gold of defined purity (fineness) and quantity and/or cash, value of which is equivalent to Creation Unit size The Creation Unit size in case of Birla Sun Life Gold ETF shall be 1,000 units and in multiples thereof • For Purchase / Sale of units through Stock Exchange: All categories of Investors may purchase the units of the scheme through the Stock exchange on which the units of the scheme are listed on any trading day in round lot of 1 (one) Unit at the prevailing listed price. • No switch-ins/switch-outs shall be allowed under the scheme on an ongoing basis.
Listing	The Units of the scheme will be listed on National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) and/or any other recognised stock exchanges as may be decided by AMC from time to time. As the units will be listed on stock exchanges, investors/ unitholders can buy / sell units on a continuous basis on the stock exchanges during the trading hours like any other publicly traded stock at market prices. The minimum number of Units that can be bought or sold on the Exchange is 1 (one) unit. All investors may buy/sell Units on the Stock Exchange on all the trading days as per the settlement cycle of the Stock Exchange. AMC has proposed to engage Authorised Participant for creating liquidity for units of the scheme on the stock exchange so that retail investors (investors other than Authorised Participant and Large Investors) may be able to buy or redeem units on the stock exchange. Alternatively, the Authorised Participants and Large Investors may subscribe to and/or redeem the units of the scheme with the Mutual Fund on any business day during the ongoing offer period commencing not later than 5(five) business days from the date of allotment at a price equivalent to applicable NAV and transaction charges, if any, provided the units offered for subscription and/or redemption are not less than Creation Unit size & in multiples thereof. Disclaimer clause of NSE/BSE: It is to be distinctly understood that the permission given by National Stock Exchange of India Limited (NSE) / Bombay Stock Exchange Ltd. (BSE) should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE/BSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of NSE/BSE'.
Benchmark Index	Domestic Price of Physical Gold
Entry Load*	Nil
Exit Load	Nil The units of the scheme are compulsorily traded in dematerialized form, and hence, there shall be no entry/exit load for the units purchased or sold through stock exchanges. However, the investor shall have to bear costs in form of bid/ask spread and brokerage or such other cost as charged by his broker for transacting in units of the scheme through secondary market.
Dividend Policy	The Trustees may declare dividends subject to the availability of distributable surplus as computed in accordance with SEBI Regulations.

*In terms of SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor.

Scheme Features

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