NFO Alert: Tata Mutual Fund Introduces Tata Gold ETF Fund of Fund; Comprehensive Overview
Written by Sanjay Kumar
Tata Mutual Fund has unveiled its latest offering, the Tata Gold ETF Fund of Fund, as part of its commitment to providing diverse investment avenues for investors. The scheme, open for public subscription starting January 02, 2023, will remain accessible until January 16, 2023. Following this initial period, the scheme will reopen for continuous sale and repurchase, allowing investors additional opportunities for participation on or before January 24, 2023.
Understanding the Mutual Fund Scheme:
This innovative financial product falls under the category of an open-ended fund of fund scheme, focusing on investments in the Tata Gold Exchange Traded Fund. Investors seeking long-term capital growth and returns aligned with those provided by the Tata Gold Exchange Traded Fund will find this scheme particularly appealing.
Key Objectives of the Fund:
The primary objective of the Tata Gold ETF Fund of Fund is to deliver returns in tandem with the Tata Gold Exchange Traded Fund. It’s important to note, however, that the nature of investments involves inherent uncertainties, and there is no guarantee that the scheme’s objectives will be realized.
Anand Vardarajan, Business Head – Institutional Clients, Banking, Alternate Investments, and Product Strategy at Tata Asset Management, expressed the rationale behind the launch:
“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.”
Investment Details:
Interested investors can participate in this scheme with a minimum investment of ₹5000 per plan/option, with subsequent investments allowed in multiples of Re 1. Importantly, there is no upper limit imposed on investment, providing flexibility for investors with varying financial capacities.
Tata Mutual Fund continues to demonstrate its commitment to financial innovation and investor empowerment with the launch of the Tata Gold ETF Fund of Fund, offering a strategic avenue for diversification and potential long-term capital growth.
