ZFH: Is Zerodha Gold FOF affected by GOLDCASE tracking difference/ error?

Zerodha Zerodha platforms
1

There’s a gold price say 100. GOLDCASE is tracking it at 99 (Assuming 1=1 value). But on the market, it’s trading at 97 due to high supply.

Say there’s Zerodha Gold FOF… it’s NAV is what then? assuming 1=1 value. What I’m getting at is, does the FOF get the ETF units from the ZFH at 99 or market at 97?

I wish to hold it for > 5 years and don’t want to run into such price fluctuations at the time of redemption. Thus I’m looking into an FOF.

2

CC @VishalJain

3

Hey, yes, as Zerodha Gold ETF FOF will invest in GOLDCASE, it is directly linked to the performance of GOLDCASE. In general, any FOF structure would be dependent on the underlying scheme/schemes it is investing in. Hope this helps. Rgds

4

Thanks for clarifying. A narrower question would be: does Zerodha gold etf fof buy units from the AMC or the market?

5

This depends as direct subscriptions with the fund are permitted only above Rs.25 crores, so would be from the market mostly.

6

thanks!