 UTI Mutual Fund launches Gold ETFPublished on Tue, Feb 20, 2007 at 08:55 | Source : Moneycontrol.com Updated at Tue, Feb 20, 2007 at 14:34 Like this story, share it with millions of investors on M3
UTI Mutual Fund launched UTI Gold Exchange Traded Fund (Gold ETF), an open exchange traded fund to track the performance and yield of gold. The scheme will invest in gold and will reflect the international price of the commodity in the market.
Every unit of UTI Gold ETF referred to as UTI Goldshare, will approximately represent one gram of pure gold and will be listed on the NSE. The minimum initial investment is Rs 20,000 during the NFO. After the NFO, post listing, units can be bought or sold on the NSE. All the gold held in the scheme's allocated account with the custodian (Bank of Nova Scotia) will be of fineness of 995 parts per 1000. The load structure will vary from 2.5% to nil for increasing investments during the NFO period. 'UTI Gold ETF offers investors a relatively cost efficient and secure way to access the gold market without the necessity of taking physical delivery of gold,' said U K Sinha, Chairman and Managing Director, UTI AMC. The fund will invest 90-100% of the corpus in gold and 0-10% in money market instruments and other debt securities. Investors will be exempt from wealth tax but will be subject to short-term capital gain tax applicable before one year and long-term capital gain tax after one year. No securities transaction tax will be applicable on units traded on the exchange. The expense ratio for the fund will not exceed one per cent per annum. For more Mutual Fund News click here
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The new fund offer opens on March 1 and closes on March 12. 
