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Union Mutual Fund Files SID With SEBI for Union Gold Fund of Funds

Updated on: Dec 17, 2024, 6:48 PM IST
Union Mutual Fund has submitted a Scheme Information Document (SID) to SEBI to launch the Union Gold Fund of Funds
Union Mutual Fund Files SID With SEBI for Union Gold Fund of Funds
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Introduction

The Union Gold Fund of Funds is an open-ended investment scheme that focuses on investing in units of Gold Exchange Traded Funds (ETFs).

This fund offers investors a convenient way to gain exposure to gold, a valuable asset known for its long-term stability and potential as a hedge against inflation.

By investing in Gold ETFs, the fund aims to provide a cost-effective and efficient method for individuals to diversify their portfolios with gold, without the need for physical ownership.

Objective 

The main goal of the Union Gold Fund of Funds is to deliver long-term capital growth by primarily investing in Gold ETFs.

The fund seeks to track the performance of physical gold, providing investors with the benefits of gold exposure through indirect investment.

While the fund aims to reflect the price movements of gold, there is no guarantee that it will achieve the intended investment objective. The performance of the scheme will largely depend on the performance of the underlying Gold ETFs.

Fund Manager

Mr. Vinod Malviya is the fund manager for the Union Gold Fund of Funds, bringing over 14 years of experience in the financial sector. He was appointed as the Co-Fund Manager of the scheme on January 25, 2023. Prior to this role, Mr. Malviya served as a Research Analyst at Union Asset Management Company Pvt. Ltd. and held senior positions at Florintree Advisors Private Limited and East India Securities Limited, where he gained extensive expertise in the financial markets.

Asset Allocation 

Under normal circumstances, the asset allocation of the Union Gold Fund of Funds will primarily focus on units of Gold ETFs, with an allocation ranging from 95% to 100% of the total assets.

The remaining 0% to 5% of the assets will be invested in debt and money market instruments, including units of debt-oriented mutual fund schemes. This allocation strategy is designed to provide investors with exposure to gold while maintaining a small portion of debt instruments for liquidity and safety.

Load Structure

The load structure for the Union Gold Fund of Funds specifies an exit load of 1% if units are redeemed or switched out within 1 year from the date of allotment.

However, if the units are redeemed or switched out after 1 year from the allotment date, no exit load will be charged. It’s important to note that the load amounts are subject to change, and investors are encouraged to check the latest details on the AMC’s website.

The Union Gold Fund of Funds will calculate and disclose its first Net Asset Value (NAV) within 5 business days from the date of allotment. Following this, the AMC will publish the NAV on every business day by 11:00 p.m. on both the AMFI website.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Nov 26, 2024, 11:29 AM IST

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