February 27, 2024

Tata Asset Management launches four New Fund Offering focusing on Gold and Silver

Tata Asset Management launches four New Fund Offering focusing on Gold and SilverBengaluru, 03rd January, 2024: Tata Asset Management announces the launch of four new schemes i.e. 2 Exchange Traded Funds (ETFs) & 2 Fund of Fund (FOF):

  • Tata Gold ETF an open-Ended Exchange Traded Fund replicating / tracking domestic price of Gold. NFO opens from 2nd January 2024 –9th January 2024
  • Tata Gold ETF Fund of Fund, an open-ended fund of fund scheme investing in Tata Gold Exchange Traded Fund. NFO opens from 2nd January 2024 –16th January 2024
  • Tata Silver ETF an open-ended Exchange Traded Fund replicating / tracking domestic price of Silver. NFO opens from 2nd January 2024 –9th January 2024
  • Tata Silver ETF Fund of Fund an open-ended fund of fund scheme investing in Tata Silver Exchange Traded Fund. NFO opens from 2nd January 2024 –16th January 2024

Investing in gold and silver aims to offer a compelling strategy for diversification of your portfolio and long-term stability. Gold’s role as a hedge against currency devaluation, inflation, and market uncertainties, coupled with its scarcity and historical safe-haven status, helps you to preserve wealth effectively. Meanwhile, silver’s surging demand in industries like EV technology and green energy, amidst a supply shortage, signals potential price appreciation. As silver is mostly a by-product, its scarcity and expanding industrial uses make it an appealing investment.

These funds will provide investors an opportunity to take exposure in gold and silver respectively, as an asset class with low transaction costs, high liquidity and low expense ratio, etc.

Speaking at the launch, Anand Vardarajan, Business Head – Institutional Clients, Banking, Alternate investments and Product strategy at Tata Asset Management said, “When you don’t know the risk, diversify. When you know the risk, hedge it. Precious metals like gold and silver help investors in hedging their risk and also diversify their portfolios. It offers ability to hedge against inflation and currency fluctuation and at the same time, being differently co-related, it helps in providing hiding space when equity and debt markets turn volatile. If most of the Gold is above the ground and only less is to be unearthed, then this becomes a great asset class to be owned. Limited supply coupled with rising demand for gold makes a great case to have it in one’s portfolio

Silver has ornamental, decorative and also industrial use cases. Many emerging industries have seen rising use of silver and not surprisingly it is seen as the rising metal. Both gold and silver can make a compelling allocation in an investor’s portfolio giving a balance of diversification and providing some hedge.”

Enclosed below are the details about the four funds:

Fund 1:

Scheme Name Tata Gold Exchange Traded Fund
NFO Date 2nd January 2024 –9th January 2024
Scheme re-opens on or before 17th January 2024

 

Investment Objective The investment objective of the fund is to generate returns that are in line with the performance of physical gold in domestic prices, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.
Type Of Scheme

 

An Open-Ended Exchange Traded Fund replicating/ tracking domestic price of Gold
Fund Manager Tapan   Patel
Benchmark Domestic price of Gold
Creation Unit Size 10,50,000 units
ETF Per Unit Price 1 unit = 1 mg gold price
Minimum Investment Amount (During NFO) Rs. 100/-and in multiple of Re.1/-thereafter
Load Structure Entry Load: N.A.

Exit Load: Nil

Fund 2:

Scheme Name Tata Gold ETF Fund of Fund
NFO Date 2nd January 2024 – 16th January 2024
Scheme re-opens on or before 24th January 2024

 

Investment Objective The investment objective of the Scheme is to seek 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
Type Of Scheme

 

An Open-ended fund of fund scheme investing in Tata Gold Exchange Traded Fund
Fund Manager Tapan   Patel
Benchmark Domestic price of Gold
Minimum Investment Amount (During NFO) Rs. 5,000/-and in multiple of Re.1/-thereafter
Load Structure Entry Load: N.A. Exit Load:

Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal amount or switched out amount is not more than 12% of the original cost of investment

–NIL Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal amount or switched out amount is more than 12% of the original cost of investment -1%Redemption/Switch-out/SWP/STP after expiry of 365 days from the date of allotment -NIL

Fund 3:

Scheme Name Tata Silver Exchange Traded Fund
NFO Date 2nd Jan 2024 – 9th Jan 2024
Investment Objective The investment objective of the fund is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved
Type Of Scheme

 

An Open-Ended Exchange Traded Fund replicating / tracking domestic price of Silver
Fund Manager Tapan   Patel
Benchmark Domestic price of Silver
Unit Size 300,000
1 unit of ETF Price of 100 mg silver
Minimum Investment Amount (During NFO) Rs. 100/- and in multiple of Re.1/- thereafter during NFO period
Load Structure Entry Load: N.A.

Exit Load: NIL

Fund 4:

Scheme Name Tata Silver ETF Fund of Fund
NFO Date 2nd Jan 2024 – 16th Jan 2024
Investment Objective The investment objective of the Scheme is to seek to provide returns that are in line with returns provided by Tata Silver Exchange Traded Fund. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved
Type Of Scheme

 

An Open-ended fund of fund scheme investing in Tata Silver Exchange Traded Fund
Fund Manager Tapan   Patel
Benchmark Domestic price of Silver
Minimum Investment Amount (During NFO) Rs. 5,000/-and in multiple of Re.1/-thereafter
Load Structure Entry Load:

N.A. Exit Load:

Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal amount or switched out amount is not more than 12% of the original cost of investment

– NIL Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of allotment: If the withdrawal amount or switched out amount is more than 12% of the original cost of investment – 1% Redemption/Switch-out/SWP/STP after expiry of 365 days from the date of allotment – NIL

(It may be noted that risk-o-meter specified above is based on internal assessment. The same shall be updated as per provision no. 17.4.1.i of SEBI Master Circular on Mutual Fund dated May 19, 2023, on Product labelling in mutual fund schemes on ongoing basis.)

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