Tata Asset Management has launched four new schemes comprising two Exchange Traded Funds (ETFs) and two Fund of Fund (FOF) offerings each of gold and silver.
Tata Asset Management launches gold and silver investment options in mutual funds for diversification and hedging against market volatility.
Tata Asset Management has launched four new schemes comprising two Exchange Traded Funds (ETFs) and two Fund of Fund (FOF) offerings each of gold and silver.
Tata Gold ETF: This fund will replicate returns corresponding to the domestic price of gold. NFO is available from January 2 to January 9, 2024.
Tata Gold ETF Fund of Fund: This fund attempts to generate returns corresponding to Tata Gold Exchange Traded Fund. NFO runs from January 2 to January 16, 2024.
Tata Silver ETF: The fund tracks the domestic price of silver. NFO runs from January 2 to January 9, 2024.
Tata Silver ETF Fund of Fund: The scheme generates returns corresponding to returns of Tata Silver Exchange Traded Fund. NFO is open from January 2 to January 16, 2024.
Investors can participate with a minimum investment ranging from Rs. 100 in ETFs to Rs. 5,000 in ETF FoFs during the NFO period, with options for subsequent investments in multiples of Rs. 1. The exit load is nil in ETFs. In FoFs if Redemption or any switch of more han 12 per cent of inverted amount is done within one year, 1 per cent exit load is applicable.
The gold and silver investment opportunities can be used to diversify portfolios and secure long-term stability, the release said. Gold, historically a hedge against currency devaluation and market uncertainties, serves as a wealth preserver. Silver, witnessing surging demand in EV technology and green energy industries, may potentially appreciate due to its scarcity, Tata fund house said.
Anand Vardarajan, Business Head at Tata Asset Management, highlighted the significance of these metals in hedging risks, diversifying portfolios, and safeguarding against inflation and currency fluctuations. "If most of the Gold is above the ground and only less is to be unearthed, then this becomes a great asset class to be owned. Limited supply coupled with rising demand for gold makes a great case to have it in one's portfolio," Vardarajan said.
The year 2023 saw an increase in the number of Gold ETF schemes from 11 to 13, with a total of 48,33,807 Gold ETF folios by the end of October. While the funds mobilised remained relatively stable throughout the year, notable spikes were observed in July, August, and October.