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Cash Component


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Description Particulars
NAV as on 03 Feb 2012 2651.6233
Gold Value Per Kg (Excluding VAT) 2823410.9400
VAT @ 1% 28234.1100
Total Gold Value Per kg 2851645.0500
Cash Componenent ( For 1000 units) -200021.7500


Note A : NAV as on Feb 03, 2012 is 2651.6233
Note B : 1. If Cash Comp is positive investor has to pay while creation and will receive on redemption
  2. If Cash Comp is negative investor will receive on creation and will pay during redemption
Note C : Transaction charges payable by the investor is NIL per creation request and NIL per redemption request
Note D : The above creation unit is for 1000 units of Reliance GOLD

Creation unit is made up of two components portfolio deposit and a cash component. Portfolio Deposit closely approximates the proportion of the underlying asset that represent the index. The Cash Component represents the difference between the applicable net asset value of a creation unit and the market value of the portfolio deposit. Reliance Gold Exchange Traded Fund (RGETF) Portfolio deposit would consist of physical gold of defined purity (fineness or purity of 995 parts per 1000 (99.5%) or higher) and quantity and/or cash component if any. The difference between NAV and the price of 1 gram of gold may be called cash component. Each creation unit consists of 1000 units of RGETF and cash component if any.

Only Authorize Participants have the privilege to create and redeem units directly with the Asset Management Company (AMC) in creation unit size. Authorised Participants are appointed by the AMC who act as market makers to improve the liquidity of the ETF on the stock exchange. Investors, other than Authorised participants can buy the units of RGETF directly on the National Stock Exchange of India Ltd and Bombay Stock Exchange Limited

If Cash Component is negative Authorize Participants will receive it on creation and will pay the same during redemption. Hence Cash component can be a useful tool to determine the no-arbitrage price for units traded on exchange.