Bangalore: A new fund named Canara Robeco Gold Savings Fund has been launched by Canara Robeco Mutual Fund. It is an open ended fund scheme with an investment objective to offer returns that closely match up to returns offered by Canara Robeco Exchange Traded Fund. The New Fund Offer (NFO) price for the scheme is 10 per unit and will be open for subscription on June 4 and will close on June 18, 2012. The scheme re-opens on or before 2 July 2012.

The scheme will assign 95 percent to 100 percent of assets in Units of Canara Robeco Gold ETF with medium to high risk profile while up to 5 percent of assets in debt and money market instruments (including cash equivalent) and the mutual fund schemes which invest mainly in the money market securities or liquid schemes with low to medium risk profile.

Entry load charge for the scheme is zero. Exit load charge will be 2 percent if redeemed or switched out on or before completion of 1 year from the date of allotment of units. The exit load charge will be Nil, if cashed in or switched out after the completion of 1 year from the date of allotment of units.

The least application amount is 5000 and in multiples of 1 subsequently. The fund requests to collect a minimum subscription amount of 10 crore under the scheme during the NFO period. The scheme's performance will be benchmarked against Domestic Price of Physical Gold. The scheme will be managed by Akhil Mittal and Kiran Shetty.