UTI Mutual Fund has announced the launch of the UTI Gold Exchange Traded Fund (ETF) from 1 March. The new fund offer closes on 12 March. This passively managed open-ended exchange traded fund is designed to track the performance and yield of gold. The scheme will reflect the international price of gold in the market, with returns from this fund depending directly on it. Gold experts project that on an average, gold prices will be around $670 (Rs29,667) in 2007, as compared with an average price of $650 in January 2007 and $604 in 2006. Units will be available only in dematerialized form, so an investor applying for units will need to have a demat account. Since it trades on the National Stock Exchange, no mutual fund identification number is required. There is no exit load applicable on the scheme, but entry load is 2.5%, 1.5% and 0.75%, for application size of Rs50 lakh, Rs50 lakh to Rs2 crore and Rs2 crore to Rs5 crore, respectively. Long-term capital gains tax of 10% or 20% with indexation will be applicable after one year.