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In terms of return if you explore the oppurtunities the best options will be investment
in shares and Gold. With the launching of Gold ETF (Exchange Traded Funds) in India
by Bench Mark, a new era of savings has begun. Gold ETFs are open-ended mutual
fund schemes that will invest the money collected from investors in standard gold bullion (0.995
purity). The investor's holding will be denoted in units, which will be listed on a stock exchange.

Currently in India, 7 fund houses are offering Gold ETF, and on an average, investor
have gained 27% from these ETFs, since the date of inception. Normally in ETF, fund
houses usually levies a loading /processing fee of 1.5% to 2.5% per instalment, and
minimum instalment is based on price for 1 gram. These are the points were
Manappuram Kanaka Deepam (Gold Investment Scheme) has got an really upper edge
against these gold ETFs . Manappuram Kanaka Deepam has several postive features as
listed below and it is the best Gold Investment Scheme available currently in India. In
other words this can be called as Gold Savings Bank Account

1) absence of loading /processing fee

2) Minimum amount Rs.250 only
3) flexible installments system
4) assured return of 7% p.a.
5) simple foreclosure/settlement norms
6) absence of foreclosure charges
7) remittance facility of the instalments through over 1300 branches .
8) Longer duration , upto 10 years
9) Similar to savings bank account operation
10) No restrictions on no. of transactions
11) Bank Account & PAN is not mandatory

If you compare the Manappuram Kanaka Deepam with the other Gold ETFs, annual
return from Manappuram Kanaka Deepam will be much higher than the return from
Gold ETFs simply as it does not levies any upfront/loading fee.

Inflation, increasing fisical deficits, crude oil price,uncertainity in Euro & US dollars,
recession, diminishing gold mines, increased consumption, reduced supply etc are
common factor in a growth driven economy, and investment in gold plays as a crucial
hedge instrument for arresting these concerns. During the last 9 years average return
from the gold is between 16 to 18% . And in almost all the recession period gold
has performed very well and even in the last recession period, the following table
substantiate that gold is the best hedging product to challenge both the depression
and the inflation in recession and boom respectively. Currently the NAV (Net Asset
Value of all the ETF units are in the range between 1800 - 1900.


Average Return
Sl. Date of
Fund House
No. Inception
1st 2nd 3rd
Year Year Year
1 Gold Bench Mark February, 2007 26.76 22.93 27.88 22.71
2 UTI GOLD March, 2007 26.43 22.75 27.80 27.84
3 KOTAK GOLD July, 2007 26.35 22.70 -- 29.05
4 RELIANCE GOLD November, 2007 26.32 21.85 -- 24.03
5 QUANTUM GOLD February, 2008 26.32 22.74 -- 18.67
6 SBI GOLD April, 2009 25.43 -- -- 23.94
7 RELIGARE GOLD February, 2010 - -- -- 11.53

So considering the performance as listed above Manappuram Kanaka Deepam (Gold

Investment Scheme) has several added value advantages and an investor can
expects a return of 30 ± 35% p.a. in the short term and 60% plus in the long term.

Raghu.G, AGM, Internal Audit, MANAPPURAM FINANCE