Financial Insights That Matter
NFO alert: Union Mutual Fund has launched two New Fund Offers (NFOs) – Union Gold ETF and Union Gold ETF Fund of Fund (FoF). These funds provide investors with an opportunity to add gold exposure to their portfolios in a structured and convenient manner.
Union Gold ETF, Union Gold ETF Fund of Fund: Subscription dates
Both NFOs are now available for subscription. They opened on February 10, 2025. While the Union Gold ETF closes on February 17, 2025, the Union Gold ETF Fund of Fund closes on February 24, 2025.
Union Gold ETF, Union Gold ETF Fund of Fund: Open-ended scheme
Both Union Gold ETF and Union Gold ETF Fund of Fund (FoF) are open-ended funds.
Union Gold ETF: Exit load
Union Gold ETF will replicate/track domestic price of gold. Units will be listed on both NSE and BSE within five business days of allotment. This will allow investors to trade them like any other stock. No exit load is applicable.
Union Gold ETF Fund of Fund
Union Gold ETF Fund of Fund (FoF) will invest in units of Union Gold ETF, offering indirect exposure to gold. The scheme carries an exit load of 1 per cent if units are redeemed within one year.
Union Gold ETF, Union Gold ETF Fund of Fund: Fund manager
Both schemes will be managed by Vinod Malviya, Fund Manager, Union AMC.
Union Gold ETF, Union Gold ETF Fund of Fund: Key benefits
- Exposure to gold without making charges or storage risks.
- Units backed by gold of specified purity.
- Easy to buy, sell, or redeem units like any other open-ended mutual fund/ exchange traded fund.
- No theft risk as the gold is held in Demat form (ETF) or fund units (FoF).
The launch of these NFOs comes at a time when global economic conditions pose challenges to growth. Historically, gold has played 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 have been significant buyers of gold, further supporting its demand and price.
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