Reliance Money eyes Rs 2L cr gold mkt
- Shiv Sena hits out at BJP, asks it to follow "alliance dharma"
- US court dismisses Devyani Khobragade's indictment in visa fraud case
- CBI chief for closing Lalu cases, director of prosecution doesnât agree
- Ditched by Anna, Mamata rallies â around herself
- AAPâs existence a miracle of Bhagwan, Allah: Kejriwal at Mumbai road show
Targeting an estimated Rs two lakh crore (Rs 2 trillion) organised gold market in the country, Reliance Money today launched a new daily gold accumulation plan under which customers can invest as low as Rs 1,000 per month.
Under the plan, named Reliance My Gold Plan, the customer can invest a minimum of Rs 1,000 per month and the company would use the money for purchase of gold on a daily basis and the total accumulate funds can be redeemed for gold coins or jewellery at the end of the investment tenure.
The plan was launched here today in association with the World Gold Council as its marketing partner.
Reliance Money, part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital, said this first-of- its-kind plan would target the unorganised gold market that accounts for 75 per cent of total gold sales in the country.
"Gold worth about Rs two lakh crore is sold every year in the country through unorganised market and we are taking on that market with this plan," Reliance Capital's Broking and Distribution Business CEO Vikrant Gugnani said.
Asked what percentage share of this market Reliance Money was eyeing with this plan, Gugnani said: "Right now there is no other player to take on this huge potential through an organised market. We are the only player and would target the entire market, but we are sure some others would later come in".
The customers would be levied an administration charge of 1.5 per cent on each subscription, while there would be a 2.5 per cent pre-maturity charge as well.
As per the World Gold Council, 986 tonnes gold, valued at about Rs 3.2 lakh crore at current price, is estimated to have been sold in the country in 2011. Out of this, about 75 per cent gold is sold through unorganised market, with rural and urban market almost evenly divided.