UTI launches UTI Gold Exchange Traded Fund

Nagpur, Feb 22: UTI Mutual Fund announced the launch of the UTI Gold Exchange Traded Fund here today.

The New Fund Offer (NFO) opens on March 1 and closes on March 12, 2007.

Speaking to reporters, UTI Mutual Fund Regional Sales Head West) Arvind Mittal said that the fund was an open-ended exchange traded fund designed to track the performance and yield of gold. Investment would be made in physical gold and would reflect the international price of gold in the market, he said.

Every unit of the fund would represent approximately one gram of pure gold, and would be held only in dematerialised form, which would eliminate the hassles of holding the precious metal in physical form, Mr Mittal said adding that the units would be listed on the National Stock Exchange (NSE).

He said that the fund had several advantages as compared to traditional avenues of procuring gold like banks, jewellers and branded jewellers. These included low buying premium low selling discount, no making charges, and no risks of impurity or theft, he said.

The minimum application amount for individual investors was Rs 20,000, and allotment would be made on March 26, 2007, he said.

UNI