Dubai: Dubai UTI Mutual Fund has announced the launch of UTI Gold Exchange Traded Fund for a “cost efficient and secure way to access the gold market”.
U.K. Sinha, chairman and managing director, UTI AMC, said, “UTI Gold Exchange Traded Fund offers investors a new, innovative, relatively cost-efficient and secure way to access the gold market without the necessity of taking physical delivery of gold. Investors can buy and sell even one unit of the scheme on the National Stock Exchange once the scheme is listed.”
The new fund offer, closing 12 March, is an open-ended exchange traded fund for tracking the performance and yield of the underlying asset, namely gold. The fund will invest in gold bullion and reflect the international price of gold in the market.
UTI Mutual Fund aims to collect between 5% and 7% from non-resident Indians in the UAE, said Sinha.
UTI Mutual Fund, which has more than $8.9 billion (Rs40,050 crore) in assets under management, plans to start operations in Saudi Arabia soon. Sinha also said UTI plans to bring pension products in the UAE for NRIs.