Change in face value of Quantum Gold Fund

16 Dec 2021, Mumbai: Quantum Mutual Fund has announced a change in the face value of Quantum Gold Fund (QGF), making it more accessible for investors. The face value of QGF will change from Rs 100/- to Rs 2/-. Accordingly, each unit will approximately represent 1/100^th of 1 gram of gold. The Record Date for the change is December 17^th, 2021.

	Existing structure	New structure (Record Date December 17, 2021)
Face Value	Rs.100/-	Rs. 2/-
Each unit represents	0.5 grams of gold	0.01 grams of gold

 

Chirag Mehta, Senior Fund Manager, Quantum Gold Fund says that when Quantum launched its Gold ETF in 2008, it was the lowest denomination ETF in the Indian markets at 12 grams. With rising gold prices, minimum investment in QGF has increased substantially, thus leading to high NAV. With the current change in the denomination and hence the face value, the NAV of the fund will reduce proportionately to represent 0.01 grams of gold, making it more accessible for investors.

 

How does the Change in face value benefit investors? 

For example, suppose the NAV of Quantum Gold ETF is Rs. 2000representing Gold Fund NAV for ½ gram of Gold which will change to represent 0.01 gram of gold and thus the NAV would be approx to Rs. 40. With the change in the face value, the NAV of the fund will change representing 0.01 gram of gold making it more accessible for investors.

NO IMPACT on Existing Investments

Existing investment Value in Quantum Gold Fund will not be affected by this change. The NAV per unit of Quantum Gold Fund will be reset to reflect the change in the denomination of gold and Face Value per unit and the balance unit holding of the existing unitholders of the scheme will increase proportionately effective from the Record Date i.e. December 17, 2021.

About Quantum Mutual Fund

Founded by Ajit Dayal, Quantum Mutual Fund was started in 2006. We offer 10 simple and easy-to-understand schemes across all 3 asset classes i.e., equity, debt and gold. Being established for over a decade, we have witnessed significant political and economic changes, fluctuations in market conditions and adversities both natural and financial - nationally and globally. Through all these tribulations, we have emerged as a trustworthy fund house that will yield you sensible, risk-adjusted returns over the long- term.

 

As Quantum Mutual Fund launched Regular Plans in April 2017, we also rolled out a Partner Awareness and Educational initiative called Path to Partnership. We host various online benefits for our Partners under Quantum COSMOS.

 

Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. 

Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.