NFO alert: Tata Mutual Fund launches new Gold ETF Fund of Fund; details inside

Tata Mutual Fund has launched an open-ended fund-of-fund scheme (NFO), Tata Gold ETF Fund of Fund, which aims to provide returns that are in line with the returns of Tata Gold Exchange Traded Fund. The scheme is open for subscription from January 2 to January 16, 2024, with a minimum investment amount of Rs 5,000. It has no entry load, but an exit load of 1% is applicable for redemptions within 365 days of allotment if the withdrawal amount exceeds 12% of the original investment.

Investment Objective 

To provide returns that are in line with returns provided by Tata Gold Exchange Traded Fund. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.

This fund is distinct from Tata Mutual Fund’s other current schemes:

Tata Gold ETF Fund of Fund is an open-ended mutual fund scheme that invests in Tata Gold Exchange Traded Fund units. Tata Mutual Fund has one Domestic ETF Fund of Fund, Tata Nifty India Digital ETF Fund of Fund.

The following table compares this fund to other current Tata Mutual Fund schemes in the same category (i.e. Exchange Traded Fund).

Funds Allocation

Investment Strategy  

• Tata Gold Exchange Traded Fund is a passively managed fund which will employ an investment approach designed to track the performance of the domestic price of Gold.

• The scheme will invest at least 95% of its total assets in the Gold or Gold related instruments. It may hold up to 5% of their total assets in debt or money market securities.

• The expectation is that, over time, the tracking error of the Scheme relative to the performance of the underlying benchmark will be relatively low. The investment Manager would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimise tracking error to the maximum extent possible.

• There can be no assurance or guarantee that the scheme will achieve any particular level of tracking error relative to the performance of the underlying benchmark.

Fund Manager

Tapan Patel, Age: 35, Qualification: CFA, MFA, BBA, Total Experience (in years): 16

Peer Gold ETF FoF

Other Gold FoF – Trailing Returns (%) 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.