UTI Gold ETF

About UTI Gold ETF

• UTI Gold ETF is an open-ended exchange-traded fund scheme offered by the UTI Mutual Fund House.
• The fund invests predominantly in gold and gold-related instruments.
• UTI Gold ETF invests in gold bullions of 99.5% purity, the London Bullion Market Association (LMBA) certified physical gold.
• UTI Gold ETF was launched on April 17, 2007.
• Niranjan Das has been managing the fund since July 2007.
• UTI Gold ETF’s assets under management (AUM) stood at ₹ 1,117.94 crore as of July 31, 2024.
• The ETF units can be traded at a market price during each session.
• One can invest in the scheme directly through a demat account with a registered broker.

Investment Objective & Benchmark

• The investment objective of the fund is to provide returns that closely track the performance and yield of the gold.
• The ETF provides a way to diversify an investment portfolio by including exposure to gold.
• The precious metal may behave differently offering higher returns during period of uncertainity and low stock market returns.
• It is benchmarked against the price of physical gold.
• Gold is traditionally used as a hedge against currency depreciation and market instability in the long term.
• UTI Gold ETF allows investment in gold in a transparent, safe and low-cost manner.
• The UTI Gold ETF is a high-risk investment instrument suitable for those looking at a long-term wealth creation goal.
• Investors gain exposure to gold without the hassle of handling or storing the physical metal. This simplifies the investment process.
• Buying physical gold can incur several additional costs, including making charges, dealership premiums and storage charges.
• The UTI Gold ETF also involves lower fees than buying and maintaining physical gold.
• The ETF is a more liquid option than physical gold.

Asset Allocation & Portfolio Composition

• The asset allocation of the fund comprises around 99.32% in commodities, 0.06% in Cblo, and 0.33% in NCA.
• Allocation to gold has strategically helped to improve the overall portfolio’s risk-adjusted returns.
• The top holding of this fund is in gold bullion which is around 99.32%
• UTI Gold ETF has given a return of 15.3% in the last year compared to benchmark retuns of 15.95% as on July 31, 2024.
• Since its inception, UTI Gold ETF has given annualised returns of 11.46%.