Targeting an estimated Rs. 2 lakh crore organised gold market in India, Reliance Money, part of Anil Ambani-led Reliance Group’s financial services arm Reliance Capital, launched a new daily gold accumulation plan on Thursday.
Under the plan, named Reliance My Gold Plan, for a minimum monthly investment of Rs. 1,000, the company would purchase gold for the customer daily, and the total accumulated funds can be redeemed for gold coins or jewellery at the end of the investment tenure.
The plan was launched here in association with the World Gold Council as its marketing partner.
Reliance Money said this first-of- its-kind plan would target the unorganised gold market that accounts for 75% of total gold sales in the country.
“Gold worth about R2 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.
Gugnani added, “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% on each subscription, while there would be a 2.5% 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% gold is sold through unorganised market, with rural and urban market almost evenly divided.
Reliance Money claimed the new plan is different from schemes offered by unorganised jewellers which only allowed consumers to buy gold at prices prevalent at the end of the investment tenure.