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Union Mutual Fund has launched two NFOs - Union Gold ETF and Union Gold ETF Fund of Fund (FoF).
The NFOs of these open-ended schemes open for subscription on February 10. While the Union Gold ETF will close on February 17, the Union Gold ETF Fund of Fund will close on February 24.
The Union Gold ETF scheme will track the domestic gold prices and the units will be listed on both the stock exchanges (NSE and BSE) within five business days of allotment.
The Union Gold ETF FoF will invest in the units of Union Gold ETF offering indirect exposure to gold through non-demat route. This scheme will carry an exit load of 1% if units are redeemed within one year.
In a press release, Madhu Nair, CEO, Union MF said that the NFOs will mark Union MF’s foray into the gold investment space at a time when investors are looking for diversified solutions. He said, “India remains the world’s largest consumer of gold and these funds offer a structured way to participate in the gold market. For investors seeking long-term diversification, these NFOs may be a suitable option.”
Vinod Malviya, Fund Manager, Union MF, said that no asset class consistently outperforms across all market cycles, which is why diversification is essential to manage risk and optimize returns. Historically, gold has helped enhance risk-adjusted returns in portfolios during economic downturns and inflationary periods, he added.
