NFO Alert: Tata Mutual Fund launches Tata Gold Exchange Traded Fund; all you need to know
Tata Mutual Fund announced the launch of the Tata Gold Exchange Traded Fund. The scheme opened for public subscription on January 02, 2023, and will close on January 09, 2023.
The scheme re-opens for continuous sale and repurchase not later than January 17, 2023. This is an open-ended exchange-traded fund replicating/tracking the domestic prices of gold.
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.
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:InstrumentsIndicative allocations(% of total assets)Risk ProfileGold (Includes Physical Gold and other Gold related instruments as permitted by SEBI from time to time)95% to 100%High RiskDebt & Money Market Instruments including units of Mutual Funds0% to 5%Medium 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 fund10-year returns (in %)5.805.806.02IDBI Gold Exchange Traded Fund-ICICI Prudential Gold ETF-Invesco India Gold ETF5.86Kotak Gold ETF6.13HDFC Gold Exchange Traded Fund6.02UTI Gold Exchange Traded Fund-Aditya Birla Sun Life Gold ETF6.12SBI- ETF Gold-Canara Robeco Gold Exchange Traded Fund-Edelweiss Gold ETF- The performance of the scheme shall be benchmarked to the
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