UTI Mutual Fund (UTI) launches an open-ended Fund of Fund Scheme investing in UTI Gold Exchange Traded Fund – ‘UTI Gold ETF Fund of Fund’. The New Fund Offer opens on October 10, 2022 and closes on October 21, 2022. The scheme will re-open for subscription and redemption on ongoing basis from October 31, 2022.
To provide investors an opportunity to take exposure in Gold as an asset class in a simple, cost-effective and convenient way without the requirement of having a demat/trading account, UTI Mutual Fund is coming out with the UTI Gold ETF Fund of Fund, their first FOF scheme.
The investment objective of the scheme is to seek to provide returns that correspond to returns provided by UTI Gold ETF by investing in units of UTI Gold ETF. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Mr. Niranjan Das is the dedicated Fund Manager for UTI Gold ETF Fund of Fund.
Mr. Sharwan Kumar Goyal, Head – Passive, Arbitrage & Quant Strategies, UTI AMC, commented on the launch, “UTI Gold ETF Fund of Fund can be a good option for investors for a balanced portfolio from the perspective of strategic asset allocation. It offers multiple benefits which includes portfolio diversification, hedge against inflation over long term, hedge against currency depreciation and it aims to protect downside during economic turmoil.”
Salient features of UTI Gold ETF Fund of Fund
- Eligible Investors
- Investors looking to take exposure in a Gold as an asset class in a simple, cost-effective and convenient way without the requirement of having a demat/trading account
- Investors looking to have systematic allocation to Gold in a disciplined way.
- New Fund Offer Price
- During the NFO period, the units of the scheme will be sold at face value i.e., ₹ 10/- per unit
- Asset Allocation
| Instruments | Indicative Allocation
(% of total Asset) |
Risk Profile | |
| Minimum | Maximum | ||
| Units of UTI Gold ETF | 95% | 100% | Medium to High |
| Money Market instruments* including Tri-Party Repo on Government securities or Treasury bills, cash & cash equivalents | 0% | 5% | Low |
| *Money Market Instruments include commercial papers, commercial bills, treasury bills, and Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposit, Tri-Party Repos on Government Securities or Treasury bills and any other instruments as specified by Reserve Bank of India/SEBI from time to time. | |||
- Minimum Application Amount
- Minimum initial investment is ₹ 5,000/- and in multiples of ₹ 1/- thereafter.
- Subsequent minimum investment amount is ₹ 1,000/- and in multiples of ₹ 1/- thereafter.
- The minimum SIP amount for Daily, Weekly and Monthly SIP is ₹ 500/- and in multiples of ₹ 1/- thereafter.
- The minimum SIP amount for Quarterly SIP is ₹ 1,500/- and in multiples of ₹ 1/- thereafter.
- Plans and Options Available
- Regular Plan and Direct Plan – Both Plans offer only Growth Option
- Load Structure
- Entry Load: NIL (Not Applicable as per SEBI guidelines)
- Exit Load:
1% – If redeemed or switched out on or before completion of 15 days from the date of allotment of units
Nil – If redeemed or switched out after completion of 15 days from the date of allotment of units
- Benchmark Index
Price of Gold
- Facilities offered
- Systematic Investment Plan (SIP)
- Systematic Withdrawal Plan (SWP)
- Systematic Transfer Investment Plan (STRIP) (Available as Destination Scheme and Source Scheme)
- Flexi Systematic Transfer Investment Plan (Flexi STRIP) (Available as Destination Scheme and Source Scheme)
Product Label
UTI Gold ETF Fund of Fund
(An Open-Ended Fund of Fund Scheme investing in UTI Gold Exchange Traded Fund (UTI Gold ETF)
The investors will be bearing the recurring expenses of the scheme, in addition to the expenses of underlying scheme i.e. UTI Gold ETF.
This product is suitable for investors who are seeking*:
- Long term capital growth
- Returns that are commensurate with the performance of UTI Gold ETF through investment in units of UTI Gold ETF
Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
