UTI Mutual Fund launches UTI Gold Exchange Traded Fund

Chennai, Feb 21 (UNI) Cashing in on the growing trend of investing through Gold, UTI Mutual Fund today announced launch of UTI Gold Exchange Traded Fund.

The new fund offer would open on March one and closes on March 12, UTI AMC Country Head and President Mohit Sachdev told reporters here today.

It would be an open ended Exchange Traded Fund designed to trac the performance and yield of the underlying asset - gold.

Mr Mohit said "the scheme will be invested in gold bullion and reflect the international price of gold in the market".

He said every unit of UTI gold Exchange Traded Fund would approximately represent one gram of pure gold and the unit allotted under the scheme would be credited to investors' demat accounts.

The new scheme would offer investors a new, innovative, relatively cost efficient and secure way to access the gold market without the necessity of taking physical delivery of gold. "It is like having gold in your demat account", he added.

He said investors could invest during the NFO with a minimum amount of Rs 20,000 and in multiples of Re one thereafter. "After the NFO, post listing units can be bought or sold by investors on the NSE".

On why Gold Exchange Traded Fund, Mr Mohit said gold was stable, less volatile than other forms of investments and would provide hedge against inflation and also against depreciating dollar rates.

"The gold price is always higher than inflation and defenitely assures higher returns always", he said and added that the price of gold would increase because of the demand-supply gap.

UNI