Investing in gold has regained its prominence as a lucrative option for savvy investors, particularly in the current market environment. With prices on a consistent upward trajectory, experts speculate that gold could reach the significant threshold of ₹1 lakh per gram by Diwali. For those looking to invest easily in gold, Union Mutual Fund has launched two new gold ETFs that open up opportunities for both seasoned and novice investors alike.
Union Mutual Fund’s Gold ETFs: An Overview
Union Mutual Fund has introduced two products: the ‘Union Gold ETF’ and the ‘Union Gold ETF Fund of Fund’, which were launched on February 10, 2025. Both funds are open-ended schemes and aim to provide investors with exposure to gold prices in the domestic market. Importantly, investors can exit whenever they choose without incurring any exit load, making these ETFs accessible and flexible.
Key Features of Union Gold ETFs
- Launch Date: February 10, 2025
- Type: Open-ended scheme
- No Exit Load: Investors can exit anytime without penalty
- Unit Allotment: ETF units will be allotted within five working days
- Minimum Investment: Starting at ₹1,000 with subsequent investments in multiples of ₹1
The Union Gold ETF will directly track the domestic gold prices, allowing investors to trade their units like regular stocks. On the other hand, the Gold ETF Fund of Fund will invest indirectly in the Union Gold ETF units, providing an alternative route for those looking to gain exposure to gold.
Fund Management Strategy
Union Mutual Fund is committed to tracking the physical gold’s domestic price to manage these funds efficiently. The responsibility for managing both ETFs has been entrusted to Vinod Malviya, a seasoned fund manager at Union AMC with extensive experience in fund management. His expertise will help navigate the complexities of the gold market, providing investors with a robust investment option.
Insights from Vinod Malviya
Vinod Malviya emphasizes the importance of portfolio diversification across various asset classes to manage risk and achieve better returns. Historically, gold has been a strong asset for mitigating risks, particularly in times of inflation and economic turmoil. Therefore, including gold in your investment portfolio is essential for achieving a balanced risk-reward profile.
Why Invest in Gold ETFs?
Investing in Gold ETFs offers several advantages:
- Liquidity: Easier to buy and sell on stock exchanges.
- Cost-effective: Lower expense ratios compared to physical gold investment.
- Transparency: Daily NAV disclosures ensure clear visibility into fund performance.
- Diversification: Enhances overall portfolio performance by including a stable asset class.
As the demand for gold investment continues to grow, Union Mutual Fund’s introduction of these ETFs provides an excellent opportunity for investors to capitalize on this trend.
Disclaimer: Investing in shares, ETFs, or mutual funds involves stock market risk. It is advisable to consult with your financial advisor before making any investment decisions. TV9 Digital does not hold any responsibility in connection with this investment advice.