In a bid to provide investors with a fresh avenue for diversification, Tata Mutual Fund has launched the Tata Gold ETF Fund of Fund. This new offering aims to tap into the potential of the gold market, offering opportunities for long-term capital growth.
Open for Investment: Key Dates and Details
Investors keen on exploring this investment avenue can participate as the scheme is open for public subscription from January 02, 2024, to January 16, 2024. Following this initial period, the fund reopens for continuous sale and repurchase, ensuring investors can seize opportunities at their convenience until January 24, 2024.
Objective: Aligning Returns with Tata Gold ETF
The primary goal of the Tata Gold ETF Fund of Fund is to provide returns in line with the Tata Gold Exchange Traded Fund (TGETF). Investors looking for returns mirroring the gold market’s performance may find this offering appealing.
Suitability for Investors: Long-Term Growth and Returns
This investment product is particularly suitable for investors seeking long-term capital growth and returns consistent with the performance of the Tata Gold ETF. It provides a chance for individuals to participate in the gold market’s potential upside.
Insights from Tata Asset Management
Anand Vardarajan, Business Head at Tata Asset Management, underscores the importance of diversification and risk hedging in a portfolio. Precious metals like gold offer a unique opportunity to diversify and act as a hedge against inflation and currency fluctuations, especially during volatile market conditions.
Accessible Investment: Minimum and No Entry Load
Investors can venture into this opportunity with a minimum investment of ₹5000 per plan/option, making it accessible for a broad range of individuals. Importantly, the absence of an “Entry Load” eases the entry process for investors.
Benchmark and Asset Allocation
The scheme’s asset allocation revolves around a significant investment in the Tata Gold Exchange Traded Fund (TGETF), with the domestic gold price serving as the benchmark. This strategic alignment ensures that investors can gauge the scheme’s performance against the gold market.
Flexible Exit Load Structure
Investors benefit from a flexible exit load structure. After the expiry of 365 days from the date of allotment, there is no exit load. However, if investors choose to redeem or switch out before this period and the amount exceeds 12% of the original cost of investment, a 1% exit load may apply.
Expert Management and Risk Awareness
Tapan Patel takes charge as the designated fund manager for this scheme. It’s crucial for investors to acknowledge the “High Risk” nature of the scheme, emphasizing the importance of understanding associated risks before making investment decisions. Seeking advice from financial advisors is recommended for a personalized approach.
This latest offering from Tata Mutual Fund provides a gateway for investors to explore potential benefits from the dynamic gold market. With simplicity, accessibility, and strategic alignment, the Tata Gold ETF Fund of Fund presents an opportunity for investors to diversify and unlock potential returns.