UTI Goldshare, the Gold Exchange Traded Fund was admitted to dealings on the National Stock Exchange today. However, UTI admitted that the AUM collected from the ETF was much smaller than expected. The AUM at the time of listing was Rs 150 crore.
"A total of 26,000 investors had applied, however about 400 investors did not have demat accounts, hence the investors attracted to the scheme stood roughly at 25,000. At least 85% of our collections came from retail investors and many invested in the Gold ETF with less than Rs 1 lakh," said UTI Mutual Fund's chief investment officer, AK Sridhar.
UTI's Goldshare has set a target of Rs 750 crore in AUM by the end of the year. The listing price of Goldshare on the NSE was Rs 950.
"We know the affinity of the Indian investor towards gold. This concept is new and unless efforts are made to create liquidity, this product will not gain. The success hinges on creating awareness about such products. Gold in the demat form is the story that needs to be told to the investors," said UK Sinha, Chairman and Managing Director, UTI AMC.
"A total of 26,000 investors had applied, however about 400 investors did not have demat accounts, hence the investors attracted to the scheme stood roughly at 25,000. At least 85% of our collections came from retail investors and many invested in the Gold ETF with less than Rs 1 lakh," said UTI Mutual Fund's chief investment officer, AK Sridhar.
