UTI to launch Gold Exchange Traded Fund NFO

The New Fund Offer (NFO) of the UTI Gold Exchange Traded Fund will be open from 1st March 2007 to 12th March 2007. Soon after the allotment, the fund will be listed and traded on the National Stock Exchange (NSE).

Every unit of UTI Gold ETF will approximately represent one gram of gold. Thus, it is somewhat like holding gold in your demat account. After listing, the investors can buy or sell the units from any NSE member.

During the New Fund Offer (NFO) period, any investor can subscribe to the UTI gold units with a minimum investment of Rs.20000. Units during the NFO will be available at NAV based price of allotment date. After the NFO, post listing, the UTI gold units can be bought / sold by the investors on the National Stock Exchange (NSE). Further creation and redemption of units, post NFO period, will be through authorised participants.

The fund charges entry load upto an investment of Rs.4,99,99,000 depending on the amount invested. There is no entry load for investment of Rs.5,00,00,000 and above.

Source : Equity Bulls

Keywords