Tata Gold ETF

About Tata GOLD ETF

• The Tata Gold ETF is an exchange-traded fund focusing on investing in gold.
• The ETF is managed by Tata Mutual Fund House.
• The Tata Gold ETF was launched on February 12, 2024.
• The assets under management of the ETF stood at ₹136.29 crore as of June 30.
• Tapan Patel and Kapil Menon are the fund managers of the Tata Gold ETF.
• The ETF is traded on both stock exchanges like a stock, which provides liquidity and flexibility for investors.
• It can be bought and sold during market hours at prevailing prices through a demat account.

Investment Objective & Benchmark

• The Tata Gold ETF's primary objective is to closely replicate the performance of physical gold in the domestic market.
• This ETF is benchmarked against the daily spot price of gold in the domestic market, reflecting the current trading value of gold.
• For investors, who are seeking to benefit from gold's long-term performance, the Tata Gold ETF offers a convenient alternative to purchasing and storing physical gold.
• Investors can trade this ETF on stock exchanges with liquidity and ease of access.
• The ETF offer diversification of funds as gold often behaves differently from other asset classes such as stocks and bonds, which can add stability and balance to your overall investment strategy.
• The risk level profile of Tata Gold ETF is high.
• While the ETF's performance is closely tied to the price of gold, it is subject to market fluctuations and various fund-related expenses.
• Gold is seen as a hedge against inflation and economic uncertainty. The Tata Gold ETF aims to offer these protective benefits by closely tracking the performance of gold.

Asset allocation & portfolio composition

• The fund allocation of the ETF consists of 96.83% in gold and 3,17% in cash and cash assets.
• The top holding of Tata Gold ETF majorly consists of gold around 96.83%.
• Since its inception, the ETF has given an annualised return of 13.36%.