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Below is quote on Change in Face Value of Quantum Gold Fund by Mr. Chirag Mehta - Senior Fund Manager - Alternative Investments, Quantum AMC

Quantum Mutual Fund has announced a change in the face value of Quantum Gold Fund (QGF), making it more accessible for investors. The face value of QGF will change from Rs 100/- to Rs 2/-. Accordingly, each unit will approximately represent 1/100th of 1 gram of gold. The Record Date for the change is December 17th, 2021.

Chirag Mehta, Senior Fund Manager, Quantum Gold Fund says that when Quantum launched its Gold ETF in 2008, it was the lowest denomination ETF in the Indian markets at 12 grams. With rising gold prices, minimum investment in QGF has increased substantially, thus leading to high NAV. With the current change in the denomination and hence the face value, the NAV of the fund will reduce proportionately to represent 0.01 grams of gold, making it more accessible for investors

How does the Change in face value benefit investors?

For example, suppose the NAV of Quantum Gold ETF is Rs. 2000representing Gold Fund NAV for ½ gram of Gold which will change to represent 0.01 gram of gold and thus the NAV would be approx to Rs. 40. With the change in the face value, the NAV of the fund will change representing 0.01 gram of gold making it more accessible for investors.

NO IMPACT on Existing Investments

Existing investment Value in Quantum Gold Fund will not be affected by this change. The NAV per unit of Quantum Gold Fund will be reset to reflect the change in the denomination of gold and Face Value per unit and the balance unit holding of the existing unitholders of the scheme will increase proportionately effective from the Record Date i.e. December 17, 2021.

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