Money Tree

Fund Opens On : March 01,2007
Fund Closes On : March 12,2007
Minimum subscription : Rs.20,000
Face Value : Rs.100/-
Listing Stock Exchange : NSE
Fund Lists On : March 26,2007
Entry Load : 2.25 %

Objects of the Issue : To endeavor to provide returns that, before expenses, closely resemble
the performance and yield of gold.

Background : The UTI gold fund is the second such type of fund in the country, Benchmark
Asset Management Company Private Limited launched the first fund.The minimum investment in
UTI gold fund is in multiple of Rs. 1,000/-

Advantages :
It provides a new, innovative, relatively cost-efficient and secure way to access the gold market without taking physical delivery of gold.
In case of buying gold from the banks high premium is charged and physical gold is delivered in multiples of bars of 50 grams. whereas in ETF the unit can be traded in multiples of one unit.
It has a low buying premium.
Thruogh this fund gold is available at cheaper rates, as compared to buying from the banks
and jewellers.

Unlike physical gold, the exchange traded gold units are not subject to wealth tax but are subjected to capital gains tax.

Each unit of the gold fund would represent approximately 1 gram of gold. The units allotted will be credited to the investors’ demat accounts.

The entry load as a percentage of net asset value (NAV) is 2.5 % for investment upto Rs.50 lakh;1.5 % for investment between Rs. 50 lakh and Rs. 2 crore; 0.75 % for Rs.2 crore and Rs.5 crore and for investments over Rs.5 crore there would be no entry load.

UTI Gold Exchange Traded Fund will invest 90-100% in gold bullion instruments and 0-10% in
money market and other debt securities.