Publish Date:
UTI Mutual Fund has Introduced a new scheme – UTI Gold ETF Fund of Fund
It is an open-ended Fund of Fund Scheme investing in UTI Gold Exchange Traded Fund (UTI Gold ETF).
Accordingly, 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 is no guarantee or assurance that the investment objective of the scheme will be achieved.
Under normal circumstances, UTI Gold ETF Fund of Fund will hold an allocation of 95% to 100% of its assets in Units of UTI Gold ETF and 0% to 5% in Money Market Instruments including Tri-Party Repo on Government securities or Treasury bills, cash & cash equivalents.
As per the Scheme Information Document, UTI Gold ETF Fund of Fund may buy/sell the units of UTI Gold ETF either directly with the Fund or through the secondary market on the Stock Exchange(s). The scheme would also invest in debt & money market securities to the extent necessary to meet the liquidity requirements for the purpose of repurchases or redemptions.
The fund manager endeavours that the returns of UTI Gold ETF Fund of Fund shall correspond with that of UTI Gold ETF to its best efforts, subject to tracking errors. The deviation from the underlying UTI Gold ETF as specified above shall also be attributed on account of the receipt of cash inflows. The average number of days of inflow of clear funds may differ depending on the mode/source of transaction.
UTI Gold ETF Fund of Fund’s performance will be benchmarked against Domestic Prices of Gold.
The scheme will be managed by Mr Niranjan Das
The NFO opens for subscription on October 10, 2022 and closes on October 21, 2022. The scheme will reopen for continuous sale and repurchase on October 31, 2022.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.