Ahmedabad, Feb 27 (UNI) UTI Mutual Fund will launch UTI gold Exchange Traded Fund from March one to 12 for investors which will be traded on the National stock Exchange (NSE) in the second week of April just like the common shares.
Briefing mediapersons here today, Arvind Mittal, Regional Sales Head (West) of the UTI Mutual Fund said the open ended exchange traded fund is designed to track the performance and yield of gold.
The fund will invest in gold bullion reflected in the international price in the market.
He said the fund would be utilised to buy gold from the London International Market at the listed prices and the bullion would be kept in the custody of Bank of Nova Scotia in Mumbai.
He said that intially we kept a target between 500 to 600 crrore but the market expectation within two years is over five thousand crore.
Once the fund is listed on the NSE, the subscribers can trade gold units just like shares even at the smallest quantity of one gram which will be credited to investors demat account. Minimum application amount of the New fund Offer is Rs 20,000 and in multiples of Rs one thereafter.
Ravi Bhatia, Fund Manager of UTI gold said that investors can invest at the price replicating the international prices which will be free from no making charges, storage costs and insurance costs.
Investors can easily sell the units on the NSE at the prevailing prices.
He said that Gold has consistency which is not affected when the equity market is fluctuating nor by the inflation and it have its historic purchasing power parity. He said that gold prices are increasing in view of demand and supply gap.
Mr Bhatia said that India is one of the largest consumer of gold having over 10 per cent world's gold stock, however he said that our banks reserve in the gold is just over four per cent in comparison with developed countries.
UNI
Briefing mediapersons here today, Arvind Mittal, Regional Sales Head (West) of the UTI Mutual Fund said the open ended exchange traded fund is designed to track the performance and yield of gold.
The fund will invest in gold bullion reflected in the international price in the market.
He said the fund would be utilised to buy gold from the London International Market at the listed prices and the bullion would be kept in the custody of Bank of Nova Scotia in Mumbai.
He said that intially we kept a target between 500 to 600 crrore but the market expectation within two years is over five thousand crore.
Once the fund is listed on the NSE, the subscribers can trade gold units just like shares even at the smallest quantity of one gram which will be credited to investors demat account. Minimum application amount of the New fund Offer is Rs 20,000 and in multiples of Rs one thereafter.
Ravi Bhatia, Fund Manager of UTI gold said that investors can invest at the price replicating the international prices which will be free from no making charges, storage costs and insurance costs.
Investors can easily sell the units on the NSE at the prevailing prices.
He said that Gold has consistency which is not affected when the equity market is fluctuating nor by the inflation and it have its historic purchasing power parity. He said that gold prices are increasing in view of demand and supply gap.
Mr Bhatia said that India is one of the largest consumer of gold having over 10 per cent world's gold stock, however he said that our banks reserve in the gold is just over four per cent in comparison with developed countries.
UNI
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