Gold Investment Plan is an investment facility which allows investor to accumulate money for buying gold for specific purposes. The investor shall invest on a monthly basis in Nippon India Gold Savings Fund (FOF scheme) over his desired investment horizon.

Gold Investment Plan allows investor to accumulate money to aim to buy gold for specific purpose. The investor shall invest on a monthly basis in the Scheme over his desired investment horizon. Units of Nippon India Gold Savings Fund will be allotted based on the investment made on a monthly basis at the applicable NAV.

Nippon India Gold Savings Fund is a Fund of Fund which invests in Nippon India ETF Gold BeES, which in turn invests in physical gold.

The investor will be required to provide One Time Bank Mandate (OTBM) for enabling debits of variable amounts from his bank account for investing in Nippon India Gold Savings Fund.

The amount of investment at predefined basis (monthly) would vary subject to the prevailing gold price on NCDEX.

The investor would receive an Alert message in advance of the approximate amount that shall be debited from the account on monthly basis. Investor has the option to opt for same or vary.

It may be noted that the spot price of Gold on NCDEX is exclusive of GST which investor will have to pay when he buys physical gold.

Investor can redeem from Nippon India Gold Savings Fund at applicable NAV subject to exit load, if any.

The units of the scheme are being offered to the public for subscription.

The following persons (subject, wherever relevant, to purchase of units being permitted under their respective constitutions and relevant State Regulations) are eligible to subscribe to the units:

(1) Resident Adult Individuals , either single or jointly (not exceeding three).

(2) Parents / Lawful guardians on behalf of Minors

Please note that this is an indicative list. Nippon Life India Asset Management Limited (NAM India) reserves the right to include / exclude new / existing categories of investors to invest in this Scheme from time to time, subject to SEBI Regulations, if any.

The funds will be invested in Nippon India Gold Savings Fund (an open ended Fund of Fund Scheme) which in turn invests in Nippon India ETF Gold BeES. Nippon India ETF Gold BeES is a Gold Exchange Traded Fund (ETF) which invests in physical Gold of 99.5% purity.

No, there is no lock-in period. However, if the investment is redeemed or switched out on or before completion of 15 days from the date of allotment of units, 1% exit load will be applicable.

The following Load Structure is applicable during the new fund offer and continuous offer including SIP installments in the scheme till further notice. Entry Load - Nil In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load will be charged for purchase / additional purchase / switch-in accepted by the Fund with effect from August 01, 2009. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/ systematic transfer plans accepted by the Fund with effect from August 01, 2009. With reference to SEBI circular No. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019, there shall be no entry load for investments under SIPs registered before August 01, 2009 with effect from April 15, 2019. The upfront commission on investment made by the investor, if any, will be paid to the ARN Holder (AMFI registered Distributor) directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN Holder. Pursuant to SEBI circular No. SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008, with effect from April 1, 2008, no entry load or exit load shall be charged in respect of units allotted on reinvestment of dividend. Exit Load - 1% - If redeemed or switched out on or before completion of 15 days from the date of allotment of units. Nil - If redeemed or switched out after completion of 15 days from the date of allotment of units. W.E.F. October 01, 2012, Exit Load If charged to the scheme shall be credited to the scheme immediately net of service tax, if any. For expense ratio for Nippon India Gold Savings Fund, please click the following link: https://mf.nipponindiaim.com/investor-services/downloads/total-expense-ratio-of-mutual-fund-schemes

Investment will be made in Nippon India Gold Savings Fund on a monthly basis. The Gold Investment Plan includes a debit at a predefined frequency (monthly) for purchasing of Nippon India Gold Savings Fund towards your defined goal. Each month the investor would receive a specific Alert for an approximate amount that will be debited from the account. This amount would vary as per the prevailing Gold price.

The Monthly investment amount will vary based on prevailing gold price. The investor should note that the price of gold referred is as prevalent in India.

The initial minimum application amount for investing in Nippon India Gold Savings Fund is Rs. 100 and in multiples of Re. 1 thereafter. The Additional Purchase Amount for investing in Nippon India Gold Savings Fund is Rs. 100 and in multiples of Re. 1 thereafter.

Hence for the simplification purpose the initial investment amount through Gold investment Plan will be equivalent to price of 0.5 grams of gold (Currently being more than Rs 100) and the subsequent purchases can be equivalent to price of 0.5 grams of gold and above.

The Monthly Investment amount will be determined based on the total Gold which needs to be accumulated over the investment horizon divided by number of months. This would be multiplied by the prevailing spot price of Gold on NCDEX of the previous day from the date of investment.

It will be calculated as follows:

(Total Gold to be accumulated (In gms))/(No. of months*10)*Prevailing NCDEX Gold spot price

The Monthly investment amount would vary depending on the prevailing spot price of Gold on NCDEX. Hence, the investor shall give One Time Bank Mandate (OTBM) for upto certain amount to enable debits of variable amounts from the investor’s bank account for investing in Nippon India Gold Savings Fund.

E- OTBM is an online registration process wherein the investor can invest with Nippon India Fund in a simple, convenient and paperless manner. It is an authorization to investor’s bank account to debit money up to a certain limit to Nippon India Fund. Investor can use this facility whenever he is transacting in any of the Nippon India Fund schemes.

For instance, if an investor wants to buy 1 Kg. gold over next 12 months and the spot price of Gold on NCDEX is Rs. 30,000/- per 10 gm (assumed), he may invest in Nippon India Gold Savings Fund through monthly investment route. Assuming he wants to invest 10 gms of gold equivalent amount in the Fund initially, the initial purchase will be computed as below:

[10/10)]*30000 = Rs. 30,000/-

The balance quantity of gold which the investor wishes to buy would be divided equally over the remaining months to arrive at the subsequent monthly purchases. Since the subsequent purchases would vary based on prevailing gold prices, the investor shall provide OTBM of a specific amount. Lets assume the investor gives an OTBM of Rs. 1,00,000/-.

Suppose next month, the spot price of Gold on NCDEX is Rs. 33,000/- per 10 gm, the investment amount for next month would be:

[(10/10)]*33000 = Rs. 33,000/-

And subsequent purchases would be computed in similar manner.

An investor can redeem units from Nippon India Gold Savings Fund on all business days directly from the AMC At applicable NAV and exit load

The taxation would be as follows:

• Long Term Capital Gain Tax (If units are held for more than 36 months) @ 20% with indexation will be applicable for Resident Investors.

• Long Term Capital Gain Tax (If units are held for more than 36 months) @ 10% without indexation will be applicable for Non Resident Investors.

• Short Term Capital Gain Tax (If units are held for less than 36 months) as per tax slab rates applicable to the investor.

The tax rates will be increased by surcharge, Health and Education Cess as applicable. Further please refer the Taxation portion of SID and SAI for complete details. Tax rates provided are as per the prevalent tax laws.

Investor should consult a tax expert for further details.Click here to refer to SID &  KIM