Tata Mutual Fund announced the launch of the Tata Gold Exchange Traded Fund. The scheme opened for public subscription on January 02, 2024, and will close on January 09, 2024. The scheme re-opens for continuous sale and repurchase not later than January 17, 2024.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund replicating/tracking the domestic prices of gold.
What is the main objective of investing in this fund?
The investment objective of the fund is to generate returns that are in line with the performance of physical gold in domestic prices, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹100 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
|
Instruments |
Indicative allocations (% of total assets) |
Risk Profile |
|
Gold (Includes Physical Gold and other Gold related instruments as permitted by SEBI from time to time) |
95% to 100% |
High Risk |
|
Debt & Money Market Instruments including units of Mutual Funds |
0% to 5% |
Medium |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such gold exchange-traded funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
|
Name of the fund |
10-year returns (in %) |
| Axis Gold ETF |
5.80 |
| Nippon Gold ETF |
5.80 |
| SBI Gold ETF |
6.02 |
|
IDBI Gold Exchange Traded Fund |
– |
|
ICICI Prudential Gold ETF |
– |
|
Invesco India Gold ETF |
5.86 |
|
Kotak Gold ETF |
6.13 |
|
HDFC Gold Exchange Traded Fund |
6.02 |
|
UTI Gold Exchange Traded Fund |
– |
|
Aditya Birla Sun Life Gold ETF |
6.12 |
|
SBI- ETF Gold |
– |
|
Canara Robeco Gold Exchange Traded Fund |
– |
|
Edelweiss Gold ETF |
– |
| Source: MoneyControl (As on January 02, 2024) | |
How will the scheme benchmark its performance?
The performance of the scheme shall be benchmarked to the domestic price of gold.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.
The AMC reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.
Who will manage this scheme?
Tapan Patel would be looking after investments in this scheme.
Does the fund contain any inherent risk?
The scheme involves “High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
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Published: 02 Jan 2024, 04:17 PM IST