ICICI Prudential Mutual Fund has recently launched a new gold exchange traded fund in a bid to capture more of the growing market for alternative assets.

The ICICI Prudential Gold Exchange Traded Fund has an objective to provide investment returns by closely tracking domestic gold price performances from the London Bullion Market Association. Gold ETFs have been getting increased interest from investors lately because the costs are lower than buying, storing and insuring physical units. They can also be sold on major exchanges.

"The Gold ETF will allow investors to participate in the future potential of these asset classes with convenience and create a holistic financial portfolio for themselves," said Nimesh Shah, the managing director for ICICI Prudential AMC.

Unit sales can go as low as one unit, which is equivalent to one gram of gold. The New Fund Offer of the fund closes on 29 July.