WHAT'S ETF

Exchange Traded Fund is a security that tracks an index and represents a basket of stocks like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.

In the case of UTI's proposed gold fund, the units issued under this scheme will be referred to as UTI Goldshare and will have a face value of Rs 100 each. Investors who want a cost-effective and convenient way to invest in gold can get an instantaneous exposure to the physical asset. Its units can be traded like a share and one can buy and sell them quickly at the ruling market price, unlike physical gold that can be sold only for a discount and by a cumbersome process.