UTI launches Dubai gold fund

UTI launches Dubai gold fund
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First Published: Wed, Mar 07 2007. 03 24 PM IST
Updated: Wed, Mar 07 2007. 03 24 PM IST
By PTI
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 as little as one unit of the scheme on National Stock Exchange once the scheme is listed.”
The New Fund Offer (NFO), which closes on 12 March, is an open-ended exchange traded fund designed to track the perfomance and yield of the underlying asset viz. gold. The scheme will be invested in gold bullion and will reflect the international price of gold in the market.
UTI Mutual Fund aims at collecting between 5% and 7% from NRIs in the UAE. “We hope to get between 5% and 7% contributions from non-resident Indians (NRIs) in the UAE,” said Sinha.
He said the UTI Gold Exchange Traded Fund will be invested in gold and will reflect the international price of the commodity in the market.
UTI Mutual Fund, which has more than $ 8.9 billion assets under management, plans to start operations in Saudi Arabia soon. Sinha also said the UTI plans to bring pension products in the UAE for NRIs.
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First Published: Wed, Mar 07 2007. 03 24 PM IST
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