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Issue open for subscription from March 1 to 12

GOLD IN PAPER: Mr U.K. Sinha (left), Chairman & MD, UTI AMC, and Mr Ravi Narain, MD & CEO, NSE, at a press conference held in Mumbai on Monday. - Shashi Ashiwal

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Mumbai Feb. 19 UTI Mutual Fund launched UTI Gold Exchange Traded Fund (Gold ETF), an open exchange traded fund to track the performance and yield of gold. The scheme will invest in gold and will reflect the international price of the commodity in the market.

The new fund offer opens on March 1 and closes on March 12.

Every unit of UTI Gold ETF referred to as UTI Goldshare, will approximately represent one gram of pure gold and will be listed on the NSE. The minimum initial investment is Rs 20,000 during the NFO. After the NFO, post listing, units can be bought or sold on the NSE.

All the gold held in the scheme's allocated account with the custodian (Bank of Nova Scotia) will be of fineness of 995 parts per 1000.

The load structure will vary from 2.5 per cent to nil for increasing investments during the NFO period.

"UTI Gold ETF offers investors a relatively cost efficient and secure way to access the gold market without the necessity of taking physical delivery of gold," said Mr U. K. Sinha, Chairman and Managing Director, UTI AMC.

The fund will invest 90-100 per cent of the corpus in gold and 0-10 per cent in money market instruments and other debt securities.

Investors will be exempt from wealth tax but will be subject to short-term capital gain tax applicable before one year and long-term capital gain tax after one year. No securities transaction tax will be applicable on units traded on the exchange.

The expense ratio for the fund will not exceed one per cent per annum.

More Stories on : New Fund Offer | Gold & Silver

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