NFO Alert: Tata Mutual Fund launches the Tata Gold ETF Fund of Fund; all you need to know

livemint.com:

Tata Mutual Fund announced the launch of the Tata Gold ETF Fund of Fund. The scheme opened for public subscription on January 02, 2023, and will close on January 16, 2023. The scheme re-opens for continuous sale and repurchase on or before January 24, 2023.

This is an open-ended fund of fund scheme investing in the Tata Gold Exchange Traded Fund.

This product is suitable for investors seeking

The primary investment objective of the scheme is to provide returns that are in line with returns provided by Tata Gold Exchange Traded Fund. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Speaking at the launch, Anand Vardarajan, Business Head — Institutional Clients, Banking, Alternate Investments and Product Strategy, Tata Asset Management said, «When you don’t know the risk, diversify. When you know the risk, hedge it. Precious metals like gold and silver help investors in hedging their risk and also diversify their portfolios. It offers the ability to hedge against inflation and currency fluctuation and at the same time, being differently co-related, it helps in providing hiding space when equity and debt markets turn volatile. If most of the gold is above the ground and only less is to be unearthed, then this becomes a great asset class to be owned. Limited supply coupled with rising demand for gold makes a great case to have it in one’s portfolio.»

Investors can invest under the scheme with a minimum investment of ₹5000 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:

Indicative allocations (% of total assets)

Minimum

Maximum

Units of Tata Gold