Bahrain: UTI launches Gold Exchange Traded Fund

Dubai, Mar 6: UTI Mutual Fund has announced the Bahrain launch of its UTI Gold Exchange Traded Fund, a first for the kingdom.

''This is an open-ended exchange traded fund designed to track the performance and yield of the gold,'' said UTI Asset Management Company Vice-President and Fund Manager Harsha Upadhyaya.

The scheme will be invested in gold bullion and reflect the international price of gold in the market, he said adding that one unit of the fund would represent one gram of pure gold.

The fund offers 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 closes for subscription on March 12.

UTI International Bahrain Head Mudit Mathur said the fund offers an opportunity to investors to diversify their portfolio by investing in gold without the problems of handling the physical asset.

Investors can buy and sell as small as one unit of the scheme on National Stock Exchange once the scheme is listed, he said.

Mr Mathur said that an application for issue of units may be made by resident individuals, institutions as well as by non-resident Indians.

''Investors can invest with a minimum application amount of Rs 20,000 and in multiples of one rupee thereafter,'' he said.

Units will be available only in dematerialised form and hence an investor applying for units is required to have a demat account, he added.

UTI International Ltd is a 100 per cent subsidiary of UTI Asset Management Company and is regulated by the Guernsey Financial Services Commission in Guernsey.

The company is authorised and regulated by the Financial Services Authority in the United Kingdom and Central Bank of Bahrain.

UNI