Slew of Gold Exchange Traded Funds in pipeline

Lucknow, Mar 6 (UNI) As many as seven financial intermediaries have filed offer document with the Securities and Exchange Board of India (SEBI) for launching Gold Exchange Traded Funds (GETF) in the country.

This would allow retail investors, financial institutions, NRIs and FIIs trade in gold on the stock exchange, just like common shares.

Homegrown Mutual Fund (MF) behemoth, UTI Mutual Fund has already launched UTI Gold Exchange Traded Fund on March 1. The issue closes on March 12. A similar offer of Benchmark MF closed last month.

GETF is a MF scheme listed on the stock exchange like common stock. It is distinct from trading in gold in a commodity exchange, since there is no hassle of physical possession of the yellow metal.

Since their inception in 2003, GETFs have netted almost 13 billion dollars worldwide and given handsome returns to investors, Mr Ramesh Meena, Regional Head (North), UTI Asset Management Company told UNI here.

The New Fund Offer (NFO) of UTI would be listed on the National Stock Exchange (NSE). It will offer wealth tax benefits with assurance of quality gold at cheaper prices.

The traded prices of GETF units on the stock exchange reflect the value per unit of the underlying assets of the fund. They enable investors to gain exposure to indices or the underlying asset at a lower cost than any other form of investing.

Mr Meena said the company has set a target of mopping up Rs 1,000 crore pan India under the scheme.

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