Artha Bharat FinMet Physical Gold Fund is the first gold fund authorised by IFSCA in GIFT City, investing in LBMA-standard gold through IIBX with an option for physical gold redemption.
Artha Bharat Investment Managers IFSC LLP has launched the Artha Bharat FinMet Physical Gold Fund, becoming the first fund manager to introduce a physical commodity fund and the first to launch a gold fund from GIFT City following the International Financial Services Centres Authority (IFSCA) framework permitting commodity trading as a financial product.
The open-ended, passively managed fund has been launched in partnership with Singapore-based precious metals specialist FinMet, which will serve as the investment advisor. The scheme will invest at least 95% of its assets in London Bullion Market Association (LBMA) standard gold bars traded on the India International Bullion Exchange (IIBX).
The fund offers weekly subscriptions and redemptions with a total expense ratio of 0.65% per annum. Investors will also have the option to redeem their investments either in certified physical gold bars or in cash.
Sachin Sawrikar, Managing Partner, Artha Bharat Investment Managers IFSC LLP, said, “We are grateful to the International Financial Services Authority for working with the industry to develop a robust regulatory framework that rewards and encourages innovation in product offering that will help establish GIFT City as the preeminent IFSC of the region.”
The physical gold will be stored in insured vaults operated by India International Depository IFSC (IIDI) within GIFT City under IFSCA regulations.
Explaining the fund’s investment rationale, Sawrikar said gold continues to provide portfolio diversification through low correlation with equities, freedom from counterparty risk and competitive long-term returns.
According to the company, the fund also aims to support the development of India’s international bullion ecosystem by becoming the first institutional investment vehicle to hold physical gold through IIBX, introducing long-term investment participation alongside commercial bullion imports.
Sawrikar said, “Our fund will be the first institutional investment vehicle to use IIBX and IIDI vaults not for import, but for holding gold as a long-term financial asset. We hope this catalyses other fund managers, family offices, and institutional investors to follow.”
Artha Bharat Investment Managers IFSC LLP manages multiple Category III Alternative Investment Funds registered with IFSCA and oversees assets of approximately $750 million from GIFT City.
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