Union Mutual Fund launches two new schemes for structured gold investments

Benchmark for both schemes is domestic price of physical gold; NFO open till February 24

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Union Mutual Fund has launched two new funds that will invest in gold “at a time when investors are looking for diversified solutions”, said the company.

 

Union Gold ETF and Union Gold ETF Fund of Fund opened for subscriptions on Monday and will continue till February 24, with a minimum investment requirement of Rs 1,000.

 

Gold plays a key role in portfolio diversification due to its low correlation with other asset classes and potential as a hedge against inflation. Central banks globally are major buyers of gold, further supporting its demand and price, said Union in a press release.

 

The schemes offer key benefits, including cost-effective exposure to gold without concerns related to making charges or storage. The units are backed by gold of specified purity and can be easily bought, sold, or redeemed like any other open-ended mutual fund or exchange-traded fund (ETF). There is no risk of theft, as the gold is held in demat form (ETF) or as fund units (FoF), it said.

 

“These NFOs (new fund offers) mark our foray into the gold investment space at a time when investors are looking for diversified solutions. India remains the world’s largest consumer of gold, and these funds offer a structured way to participate in the gold market. For investors seeking long-term diversification, these NFOs may be a suitable option,” said Madhu Nair, chief executive officer of Union Mutual Fund.

 

Details about Union Gold ETF

 

The investment objective of the schemes is to generate returns corresponding to the domestic prices of physical gold before expenses, by investing in physical gold, subject to tracking error. There is no assurance that the objective will be achieved, said the company.

 

Scheme type: Open ended

 

Scheme category: Other Scheme - Gold ETF

 

Benchmark: The benchmark for the schemes is the domestic price of physical gold.

 

People can invest a minimum of Rs 1,000 and in multiples of Re 1 thereafter during the NFO period.

 

Scheme carries an exit load of 1 per cent if units are redeemed within one year.

 

Detail about Union Gold ETF FoF

 

Objective of scheme: The objective is to generate long-term capital appreciation by investing in units of Union Gold ETF. There is no assurance that the objective will be achieved, said the company.

 

Scheme type: Open ended

 

Scheme category: Other Scheme - FoF Domestic

 

Benchmark: Domestic price of physical gold.

 

Investors can invest a minimum of Rs 1,000 and in multiples of Re 1 thereafter during the NFO period.

 

The scheme carries an exit load of 1 per cent if units are redeemed within one year.

 

Vinod Malviya will manage both schemes.