India’s precious metals ETF has been slammed as a ‘fraud’
India’s investment fund called a precious metals (AMP) fund a “fraud”.
In a statement, the investment company said its AMP fund had “lost” more than $200 million in value in a period that began in August.
“We are very disappointed that the fund is now on the list of securities which are now considered to be of dubious origin,” it said in the statement.
“Investors should carefully consider the security’s origins before investing in it, and they should always have the option to opt out of any investment that involves investment risks.”
The fund, named AMP India, said its assets were worth about $500 million.
“This is not a fund that can be sold and has no value to be held,” it added.
The fund has been listed on the Bombay Stock Exchange and the Securities and Exchange Board of India (SEBI) since the summer.
The company has a $300 million debt-funded fund, which it manages from India.
The AMP Asia portfolio has been “re-evaluated and upgraded” by the fund, it added, saying it was now valued at $5 million.
“As we understand the risk of investing in AMP, we are considering re-evaluating and upgrading our investments, which are currently valued at about $1 billion,” the company said.