UTI Mutual Fund will launch a first-of-its-kind product that will invest in equities as well as gold exchange traded funds (ETF). The ?UTI Wealth Builder Fund-Series II? will be launched in October, said officials in UTI MF.
A UTI MF official on condition of anonymity said, ?Each asset class has its own period of boom and doom. No one asset class, be it debt or commodity, can go on performing continuously. Hence it is vital to have different asset classes in one portfolio.?
The main objective of the scheme is to achieve long-term capital appreciation by investing in equities and equity-related instruments along with gold related instruments. ?In the current situation, when markets are facing huge volatility, investors need schemes with genuine low-correlated asset classes that can add to their portfolio and facilitate considerable benefits,? added the official.
For gold assets, the fund will take gold ETF routes which will be selected on the basis of their performance track record and expense ratio.
The benchmark index for equities portfolio will be BSE 100 and price of gold will be as per Securities and Exchange Board of India (Sebi) regulations for gold ETFs.
This open-ended scheme also offers systematic investment plan and systematic transfer investment plan, post the new fund offer.
Jaideep Bhattacharya, CMO of UTI
Asset Management Co Ltd said, ?We are going to launch the fund as soon as
possible. However, we are yet to finalise the date.?
He added that the company has received necessary approvals from Sebi. Apart from investing in equities and gold ETF, the fund house will also invest some amount in debt and money market securities.