UTI Gold Exchange Traded Fund launched

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UTI Mutual Fund has announced the launch of UTI Gold Exchange Traded Fund from March 1, 2007. The new fund offer (NFO) closes on March 12, 2007.

UTI Gold Exchange Traded Fund is an open-ended exchange traded fund designed to track the performance and yield of the underlying asset viz. gold. The scheme will be invested in gold bullion and will reflect the international price of gold in the market. The objective of UTI Gold Exchange Traded Fund is to endeavour to provide returns that, before expenses, closely track the performance and yield of gold.
Every unit of UTI Gold Exchange Traded Fund will approximately represent one gram of pure gold. Units allotted under the scheme will be credited to investors' demat accounts.

U K Sinha, chairman and managing director, UTI AMC, said, “UTI Gold Exchange Traded 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 is like having gold in your demat account.”

Mohit Sachdev, country head and president, UTI AMC, said, "UTI Mutual Fund offers an opportunity to investors to diversify their portfolio by investing in a new asset class viz. gold without the hassles 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."

Salient features of UTI Gold Exchange Traded Fund

Eligible investors: An application for issue of units may be made by resident individuals, institutions as well as by NRls and Flls.

Purchase and sale of units: Investors can invest during the NFO with a minimum application amount of Rs 20,000 and in multiples of Re.1 thereafter. After the NFO, post-listing, units can be bought/sold by investors on the National Stock Exchange.

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

R Rangaraj
http://chennaionline.com/ Published on March 6th, 2007