ut i gold exchange

8/10/2019 Ut i Gold Exchange

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UTI-Gold Exchange Traded Fund (UTI Gold ETF)(An open ended Exchange Traded Fund)

The product is suitable for investors who are seeking*:

v returns that, before expenses of the Scheme, closely track the performance and yield of Gold

v investment predominantly in gold and gold related instruments

v High risk (BROWN)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as:

(BLUE) investors understand

that their principal will be atlow risk

(YELLOW) investors understand

that their principal will be atmedium risk

(BROWN) investors understand

that their principal will be athigh risk

UTI Mutual Fund

UTI Asset Management Company Limited

UTI Trustee Company Private Limited

Address of the Mutual Fund, AMC and Trustee Company:

UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051.

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India(Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filedwith SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscriptionhave not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the SchemeInformation Document.

The Scheme Information Document sets forth concisely the information about the scheme that a prospective investorought to know before investing. Before investing, investors should also ascertain about any further changes to this SchemeInformation Document after the date of this Document from the Mutual Fund / UTI Financial Centers (UFCs) / Website /Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund,

Tax and Legal issues and general information on utimf.com.

SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of thecurrent SAI, please contact your nearest UTI Financial Centre or log on to our website.

The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

This Scheme Information Document is dated December 24, 2013.


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UTI-GOLD EXCHANGE TRADED FUND (UTI GOLD ETF)

2

TABLE OF CONTENTS

Item No. Contents Page No.

HIGHLIGHTS 3

I INTRODUCTION

A. Risk Factors 4

B. Requirement of minimum investors in the Scheme 6

C. Denitions 6

D. Due Diligence by the Asset Management Company 9

II. INFORMATION ABOUT THE SCHEME

A. Type of the Scheme 10

B. What is the investment objective of the Scheme? 10

C. How will the Scheme allocate its assets? 10

D. Where will the Scheme invest? 10

E. What are the Investment Strategies? 10

F. Fundamental Attributes 10

G. How will the Scheme Benchmark its performance? 11

H. Who manages the scheme? 11

I. What are the Investment Restrictions? 11

J. How has the Scheme performed? 12

K. About UTI Gold ETF 13

III. UNITS AND OFFER

A. Ongoing Offer Details 14

B. Periodic Disclosures 25

C. Computation of NAV 27

IV. FEES AND EXPENSES

A. Annual Scheme Recurring Expenses 29

B. Load Structure 30

V. RIGHTS OF UNITHOLDERS 31

VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONSOR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE

PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY31


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HIGHLIGHTS

Investment Objective The investment objective of the fund is to endeavour to provide returns that, beforeexpenses, closely track the performance and yield of Gold. However, the performanceof the scheme may differ from that of the underlying asset due to tracking error. Therecan be no assurance or guarantee that the investment objective of the UTI Gold ETFwill be achieved.

Liquidity The Units of the Scheme can be bought/sold in demat form like any other share/ stockon the National Stock Exchange (NSE) or on any recogonised stock exchange onwhich they are listed.

The Authorised Participants can directly create/redeem units with the Fund in creationunit size at NAV based prices.

Benchmark The scheme will be benchmarked against the price of Gold.

Transparency / NAV Disclosure NAVs shall be calculated and disclosed on every business day.

Loads Entry Load: Nil

Exit Load : Nil

Minimum Application Amount On the NSE: Minimum 1 Unit can be bought/sold in demat form at prices quoted onthe NSE.

Direct creation of Units with the Fund:- Authorised Participants/others can createthe Units in demat form in exchange against prescribed portfolio deposit and theapplicable cash component at NAV based prices atleast in one creation unit.


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I. INTRODUCTION

A. RISK FACTORS

Standard Risk Factors:

1. Investment in Mutual Fund Units involves investment

risks such as trading volumes, settlement risk,liquidity risk, default risk including the possible loss ofprincipal.

2. As the price / value / interest rates of the securitiesin which the scheme invests uctuates, the value ofyour investment in the scheme may go up or downdepending upon the factors affecting the stock marketand/or bullion markets.

3. Past performance of the Sponsors/AMC/MutualFund does not guarantee future performance of thescheme. There can be no assurance or guaranteethat the objective of the Scheme will be achieved.

4. The name of the scheme does not in any manner

indicate either the quality of the scheme or its futureprospects and returns. Investors are therefore urgedto study the Scheme Information Document carefullyand consult their Financial Advisor before consideringan investment in the Scheme.

5. The sponsors are not responsible or liable for any lossresulting from the operation of the scheme beyondthe initial contribution of `10,000/ made by themtowards setting up the Fund.

6. The present scheme is not a guaranteed or assuredreturn scheme.

7. Statements/Observations made are subject to thelaws of the land as they exist at any relevant point of

time.8. Growth, appreciation, dividend and income, if any,

referred to in this Scheme Information Document aresubject to the tax laws and other scal enactments asthey exist from time to time.

9. The UTI-Gold ETF will be a passively managedscheme by providing exposure to Gold and trackingits performance and yield as closely as possible. Thescheme performance may be affected by a generaldecline in the price of gold. The Scheme invests in theunderlying asset viz gold regardless of its investmentmerit.

10. Investment decisions made by the AMC may notalways be protable.

11. From time to time and subject to the Regulations,the Sponsors, the Mutual Funds and investmentcompanies managed by them, their afliates, theirassociate companies, subsidiaries of the Sponsors,and the AMC may invest either directly or indirectly inthe Scheme. The funds managed by these afliates,

associates, the Sponsors, subsidiaries of the Sponsorsand /or the AMC may acquire a substantial portion ofthe schemes units and collectively constitute a majorinvestor in the scheme. Accordingly, redemption ofunits held by such funds, afliates, associates, andSponsors might have an adverse impact on the units

of the scheme because the timing of such redemptionmay impact the ability of other unitholders to redeemtheir units.

Scheme Specic Risk Factors:

1. The value of the Units relates directly to the valueof the underlying gold held by the Scheme anductuations in the price of gold could adversely affectthe investment value of the Units. The price of goldmay uctuate due to various factors such as:

(a) Global gold supplies and demand, which isinuenced by factors such as forward sellingby gold producers, purchases made by goldproducers to unwind gold hedge positions, central

bank purchases and sales, and productions andcost levels in major gold producing countriessuch as the South Africa, the United States andAustralia.

(b) Investors expectations with respect to the rate ofination.

(c) Currency exchange rates.

(d) Interest rates

(e) Investment and trading activities of commodityfunds/hedge funds.

(f) Global or regional political, economic or nancialevents and situations.

In addition, there is no assurance that gold will maintainits long-term value in terms of purchasing power in thefuture. In the event that the price of gold declines, thevalue of investment in units in which the scheme hasinvested will, in general, decline proportionately.

2. The sale of gold by AMC to pay expenses will reducethe amount of gold represented by each unit on anongoing basis irrespective of whether the tradingprice of the units rises or falls in response to changesin the price of gold.

3. The sale of the Schemes gold to pay expenses at atime of low gold prices may adversely affect the valueof the units.

4. There may be certain circumstances that may motivatelarge scale sales of gold which could decrease theprice of gold and adversely affect an investment in theUnits.

5. There is no assurance that an active secondarymarket will develop or be maintained.


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6. UTI-Gold ETF is an Exchange Traded Fund. Theconcept of Exchange Traded Funds is relatively newto Indian capital markets. Trading in UTI-Gold ETFcould therefore be restricted due to which marketprice may or may not reect the true NAV of UTI-GoldETF at any point of time.

7. Trading of UTI Goldshare unit in the market(s) may behalted because of market conditions or for reasonsthat in view of SEBI or market authorities trading in UTIGoldshare unit is not advisable. In addition trading inUTI Goldshare unit is subject to trading halts causedby extraordinary market volatility and pursuant to SEBIand stock exchange(s) circuit lter rules. There canbe no assurance that the requirements of the Marketnecessary to maintain the listing of UTI Goldshareunits will continue to be met or will remain unchanged.

8. UTI Goldshare units may trade at a premium /discount to the NAV due to demand/supply conditionsin the market(s). Besides, any changes in the tradingregulations by the Stock Exchanges or SEBI or otherapplicable regulations may affect the ability of themarket participants to arbitrage resulting in widerpremium/discount to NAV.

9. The Schemes gold may be subject to loss, damage,theft or restriction on access. There is a risk that partor all of the Schemes gold could be lost, damagedor stolen. Access to the Schemes gold could also berestricted by natural events (such as earthquake) orhuman actions (such as terrorist attack). Any of theseactions may adversely affect the operations of thescheme and consequently an investment in units.

10. Impact cost risk: The scheme may have to bear theimpact cost arising from purchase and sale of Gold

either when the scheme accepts/gives cash or cashequivalents in lieu of Gold.

Impact costs are implicit costs also paid by liquiditydemanders to liquidity providers. Generally, the bestbid and ask prices quoted in the market are for onlysmall transactions. Larger transactions may haveto be executed at even less favorable prices. Theadditional cost is called an impact cost. For e.g. if theruling market price of a security is `500/ one may beable to buy/ sell small quantities for that price. But, ifone wishes to buy/sell huge quantities he might haveto pay /receive higher/lower price. The same principleapplies for gold also.

11. Changes in indirect taxes like custom duties for

import, sales tax, VAT or any other levies will have animpact on the valuation of gold and consequently theNAV of the Scheme.

12. Redemption orders may be subject to postponement,suspension or rejection by the Trustee under certaincircumstances.

13. Conversion of underlying gold to UTI Goldshareunits may attract capital gains tax depending on theacquisition cost and holding period of Gold to theinvestor. Redemption of UTI-Gold ETF by the AMCor sale of UTI-Gold ETF on the Stock Exchange(s)may attract short or long term capital gain tax

depending upon the holding period of the units.Moreover, converting UTI-Gold ETF to Gold mayalso attract Wealth tax.

Risks relating to Debt/Money markets

Risks associated with Debt / Money Markets in whichInterest bearing instruments/securities or DiscountedInstruments/securities issued by Corporates, Institutions,Government etc are traded. The following are some of themost important risks associated with such markets.

1. Credit Risk: Bonds/debentures as well as othermoney market instruments issued by corporates/Institutions run the risk of down grading by therating agencies and even default as the worst case.

Securities issued by Central government have lesserto zero probability of credit/ default risk in view of thesovereign status of the issuer.

2. Interest Rate Risk: Debt/Money market securitiesrun price-r isk with changes in interest rates. Generally,when interest rates rise, prices of such securities falland when interest rates drop, the prices increase.The level of interest rates is determined by the ratesat which government raises new money through RBIand the price levels at which the market is alreadydealing in existing securities, rate of ination etc. Theextent of fall or rise in the prices is a function of theprevailing coupon rate, number of days to maturity ofa security and the increase or decrease in the level

of interest rates. The prices of such securities arealso inuenced by the liquidity in the nancial systemand/or the open market operations (OMO) by RBI.Pressure on exchange rate of the Rupee may alsoaffect security prices. Such rise and fall in price ofsecurities in the portfolio of the schemes/plans mayinuence the NAVs of the schemes/plans as andwhen such changes occur.

3. Liquidity Risk: A large percentage of the total tradedvolumes on particular days might be concentrated in afew securities. Traded volumes for particular securitiesdiffer signicantly on a daily basis. Consequently, theScheme might have to incur a signicant impactcost while transacting large volumes in a particular

security.4. Migration of rating Risk: This relates to the risk on

account of a fall/rise in price of rated securities onaccount of change in ratings of such securities.

5. Money market instruments are also subject toprice volatility due to factors such as changes ininterest rates (when interest rates in the market rise,


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the value of a portfolio of money market instrumentscan be expected to decline), general levels of marketliquidity, market perception of credit worthiness ofthe issuer of such instruments and risks associatedwith settlement of transactions and reinvestment ofintermediate cash ows. The NAV of a scheme Units,

to the extent that such Scheme is invested in moneymarket instruments, will consequently be affected bythe aforesaid factors.

B. REQUIREMENT OF MINIMUM INVESTORS IN THESCHEME

As the Scheme is an Exchange Traded Scheme,as per SEBI (MF) Regulations and other applicablecirculars, the provisions relating to minimum numberof investors and maximum holding of the investors arenot applicable.

C. DEFINITIONS

In the scheme unless the context otherwise requires:

1. Acceptance/Request or date of acceptance/request with reference to an application made by anapplicant to the UTI Asset Management CompanyLtd. (UTI AMC) for creation or redemption of unitsmeans the day before the cut off time on which thedesignated UTI Financial Centre(s) (UFC) or the otherofcial points of acceptance, as per the list attachedwith this Scheme Information Document after beingsatised that such application is complete in allrespects, accepts the same.

2. Accounting Year of UTI Mutual Fund is from April toMarch.

3. Act means the Securities and Exchange Board ofIndia Act, 1992, (15 of 1992) as amended from time totime.

4. Allotment price will be on the basis of the closingvalue of the gold prices on the allotment date. Eachunit of UTI Gold ETF will be approximately equal to 1gram of gold.

5. Alternate applicant in case of a minor means theparent/step-parent/court guardian who has made theapplication on behalf of the minor.

6. AMFI means Association of Mutual Funds in India.

7. Applicable NAV means NAV of UTI Gold ETF asdeclared by the Scheme at the close of that day.

8. Applicant means an investor who is eligible to

participate in the scheme and who is not a minor andshall include the alternate applicant mentioned in theapplication form.

9. Asset Management Company/UTI AMC/AMC/Investment Manager means the UTI AssetManagement Company Limited incorporated under

the Companies Act, 1956, (1 of 1956) and approvedas such by Securities and Exchange Board of India(SEBI) under sub-regulation (2) of Regulation 21 toact as the investment manager to the schemes of UTIMutual Fund.

10. Authorised Participants means the Member of theNational Stock Exchange or any other recognizedstock exchange or any other person who is appointedby the AMC to act as Authorised Participant onentering into a participant agreement with the AMC.

11. Body Corporate or Corporation includes a companyincorporated outside India but does not include (a) acorporation sole, (b) a co-operative society registeredunder any law relating to cooperative societies and(c) any other body corporate (not being a companyas dened in this Act), which the Central Governmentmay, by notication in the Ofcial Gazette, specify inthis behalf.

12. Business Day means a day other than (i) Saturday

and Sunday or (ii) a day on which the NSE/BSE isclosed for regular trading, or the Reserve Bank ofIndia or banks in Mumbai are closed for business, or(iii) a day on which the UTI AMC ofces in Mumbairemain closed or (iv) a day on which purchaseand redemption/ changeover /switchover of unit issuspended by the Trustee or (v) a day on which normalbusiness could not be transacted due to storm, oods,bandhs, strikes or such other events as the AMC mayspecify from time to time. The AMC reserves the rightto declare any day as a Business day or otherwise atany or all Ofcial Points of Acceptance.

13. Cash means payment by cheque or draft.

14. Cash component represents the difference betweenthe applicable NAV of creation unit and the marketvalue of physical gold. The difference may includeaccrued annual charges including managementfees and residual cash in the scheme. In addition itmay also included transaction costs as charged bycustodian/ depository participant, effect of roundingoff of number of UTI-Gold ETF units in portfoliodeposit and other incidental expenses in creationof units. The portfolio deposit and cash componentapplicable for creation day will vary from time to timeand will be computed and announced by the UTI AMCon the website every business day.

15. Creation Date or date of creation with reference toan application made by amount by an applicant to the

UTI Asset Management Company Ltd. (UTI AMC) forcreation of units means the day on which the bank isable to acquire gold from the market.

16. Creation unit is a xed number of UTI Goldshareunits which is exchanged for a portfolio depositconsisting of physical gold kept in the custody andcash component in lieu of which UTI-Gold ETF units


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are allotted to the authorized participants. In caseof redemption a xed number of UTI Goldshareunits will be exchanged for delivering physical gold.Creation unit size for the Authorised Participants/both in the New Fund Offer Period and on subsequentcreation and redemption of UTI Goldshare units is

1000 units plus in multiples of 1 unit.

The AMC reserves the right from time to time, to varythe number of UTI-Gold ETF units per creation unitand such change may or may not be in conjunctionwith a change in transaction fee.

17. CDSL means Central Depository Services (India)Ltd.

18. Custodian means, Bank of Nova Scotia which hasbeen granted a certicate of registration by SEBIunder SEBI (Custodian of Securities) Regulations1996 and for the time being appointed by the Fundfor rendering custodial services for the Scheme inaccordance with the Regulations.

19. Cut off time applicable for the creation/redemption ofthe units after New Fund Offer in creation size is 3.00p.m. on acceptance/request/creation date or suchother time as may be prescribed by UTI AMC fromtime to time.

20. Depository means a body corporate as dened inthe Depositories Act, 1996 (22 of 1996) and includesNational Securities Depository Ltd (NSDL) andCentral Depository Services Ltd (CDSL).

21. Eligible Trust means - (i) a trust created by or inpursuance of the provisions of any law which is forthe time being in force in any State, or (ii) a trust, theproperties of which are vested in a treasurer under the

Charitable Endowments Act 1890 (Act 6 of 1890), or(iii) a religious or charitable trust which is administeredor controlled or supervised by or under the provisionsof any law, which is for the time being in force relatingto religious or charitable trusts or, (iv) any other trust,being an irrevocable trust, which has been created forthe purpose of or in connection with the endowment ofany property or properties for the benet or use of thepublic or any section thereof, or (v) a trust created bya will which is valid and has become effective, or (vi)any other trust, being an irrevocable trust, which hasbeen created by an instrument in writing and includesdepository within the meaning of Cl.(e) of Sub-section(1) of Section 2 of The Depository Act, 1996.

22. Entry Load means load on purchase of units.23. Exit Load means load on redemption of units.

24. Firm, partner and partnership have the meaningsassigned to them in the Indian Partnership Act, 1932(9 of 1932), but the expression partner shall alsoinclude any person who being a minor is admitted tothe benets of the partnership.

25. Fund Manager means the manager appointed forthe day-to-day management and administration of thescheme.

26. Investment Management Agreement or IMA meansthe Investment Management Agreement (IMA) dated

December 9, 2002, executed between UTI TrusteeCompany Private Limited and UTI Asset ManagementCompany Limited.

27. Market means any recognised Stock Exchange(s)where UTI Goldshare units are listed and traded.

28. Mutual Fund or Fund or UTI MF means UTIMutual Fund, a Trust under the Indian Trust Act,1882 registered with SEBI under registration numberMF/048/03/01 dated January 14, 2003.

29. NAV means Net Asset Value of the Units of theScheme calculated in the manner provided in thisScheme Information Document and in conformity withthe SEBI Regulations as prescribed from time to time.

30. New Fund Offer or NFO or New Fund Offer Periodmeans offer of the units of the UTI-Gold ExchangeTraded Fund during the New Fund Offer Period.

31. Non-Resident Indian (NRI) shall have the meaningas dened under Foreign Exchange Management(Deposit) Regulations, 2000 (FEMA Regulation 2000)framed by Reserve Bank of India under ForeignExchange Management Act, 1999 (42 of 1999). Asper FEMA Regulation 2000, Non-Resident Indian(NRI) means a person resident outside India who is acitizen of India or is a person of Indian origin. A personshall be deemed to be a person of Indian origin ifhe is a citizen of any country other than Bangladeshor Pakistan and if (a) he at any time held Indian

passport; or (b) he or either of his parents or any ofhis grand-parents was a citizen of India by virtue ofthe Constitution of India or the Citizenship Act, 1955(57 of 1955); or (c) the person is a spouse of an Indiancitizen or a person referred to in sub-clause (a) or (b)herein.

32. NSDL - National Securities Depository Ltd.

33. Number of units deemed to be in issue means theaggregate of the number of units issued and stillremaining outstanding.

34. Ofcial points of acceptance UTI Financial Centre(s)(UFC)(s), and /any other authorized centre as maybe designated by UTI AMC from time to time are

the ofcial points of acceptance of purchase andredemption applications of the scheme. The cut offtime that is mentioned in the Scheme InformationDocument would be applicable at these ofcial pointsof acceptance. Ofcial point of acceptance is attachedwith this document.


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For purchase and redemption applications receivedat any authorised collection centre, which is not anofcial point of acceptance, the cut off time at theofcial point of acceptance, will be applicable fordetermination of NAV.

35. Portfolio Deposit Portfolio deposit consists ofphysical gold which will be of predened quantity andpurity and will be dened and announced by the AMCfrom time to time.

36. Registrars means a person whose services may beretained by UTI AMC to act as the Registrar under thescheme, from time to time.

37. Regulations or SEBI Regulations mean the SEBI(Mutual Funds) Regulations, 1996 as amended fromtime to time.

38. RBI means the Reserve Bank of India, constitutedunder the Reserve Bank of India Act, 1934.

39. Scheme means the UTI-Gold Exchange traded

Fund.

40. SEBI means the Securities and Exchange Board ofIndia set up under the Securities and Exchange Boardof India Act, 1992 (15 of 1992).

41. Society means a society established under theSocieties Registration Act of 1860 (21 of 1860) or anyother society established under any State or Centrallaw for the time being in force.

42. Sponsors are Bank of Baroda, Punjab NationalBank, Life Insurance Corporation of India and StateBank of India.

43. Time all time referred to in the Scheme InformationDocument stands for Indian Standard Time.

44. Tracking Error is dened as the standard deviation ofthe difference between daily returns of the underlyingbenchmark and the NAV of the scheme.

45. Trust Deed means the Trust Deed dated December9, 2002 of UTI Mutual Fund.

46. Trustee means UTI Trustee Company PrivateLimited a company set up under the Companies Act,1956 and approved by SEBI to act as the Trustee tothe schemes of UTI Mutual Fund.

47. Unit Capital means the aggregate of the face valueof units issued under the scheme and outstanding forthe time being.

48. Unit holder means a person holding units in thescheme of the Mutual Fund.

49. UTI Gold share unit means one unit of UTI-Gold

Exchange Traded Fund in the form of ExchangeTraded Fund listed in one or more of the stockexchanges.

50. In this Scheme Information Document, unless thecontext otherwise requires, (i) the singular includesthe plural and vice versa, (ii) reference to any genderincludes a reference to all other genders, (iii) headingand bold typeface are only for convenience and shallbe ignored for the purposes of interpretation.


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D. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

Due Diligence Certicate submitted to SEBI for

UTI-Gold Exchange Traded Fund

It is conrmed that:I. the Draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds)

Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

II. all legal requirements connected with the launching of the scheme as also the guidelines, instructions, etc. issuedby the Government and any other competent authority in this behalf, have been duly complied with.

III. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors tomake a well informed decision regarding investment in the scheme.

IV. the intermediaries named in the Scheme Information Document and Statement of Additional Information areregistered with SEBI and their registration is valid, as on date.

Sd/-Date: December 24, 2013 Vivek Maheshwari

Place : Mumbai Compliance Ofcer


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II. INFORMATION ABOUT THE SCHEME

A. TYPE OF THE SCHEME

An open-ended Exchange Traded Fund.

B. WHAT IS THE INVESTMENT OBJECTIVE OF THESCHEME?

The investment objective of the fund is to endeavour

to provide returns that, before expenses, closely track

the performance and yield of Gold. There can be no

assurance or guarantee that the investment objective

of UTI-Gold ETF will be achieved.

C. HOW WILL THE SCHEME ALLOCATE ITS

ASSETS?

The investment policies of the scheme shall be as per

SEBI (Mutual Fund) Regulations, 1996 and within the

following guideline. Under normal circumstances, the

investment range would be as follows:

Instruments Indicative allocation

(% of total assets)

Risk

prole

Maximum Minimum

Gold bullion andGold RelatedInstruments #

100% 90% Medium

Money Marketinstrumentsand other debtsecurities

10% 0% Low

# Gold related instruments that may be permitted by

SEBI from time to timeGold Deposit Scheme (GDS) of Banks

UTI Gold ETF may invest in GDS of Banks, subject to the

following restrictions:

(a) The total Investment in GDS will not exceed 20%, or

as prescribed by SEBI from time to time, of total asset

under management (AUM) of UTI Gold ETF.

(b) Before investing in GDS of Banks, a written policy

shall be put in place with regard to investment in

GDS of Banks with due approval from the Boards of

UTI Asset Management Company Limited and UTI

Trustee Company private Limited. The policy shall

have a provision to obtain pr ior approval the Trustees

for each investment proposal in GDS of any Bank.

The policy shall be reviewed at least once a year.

(c) Gold Certicates issued by Banks in respect ofinvestments made by Gold ETFs in GDS shall be held

in dematerialized or physical form.

D. WHERE WILL THE SCHEME INVEST?

Portfolio of the scheme

Since the objective of the Scheme is to provideinvestment results that, before expenses, closelytracks the price and yield performance of the gold, the

Portfolio at any time will consist of gold of neness (orpurity) of 995 parts per 1000.

The Scheme will invest in money market and otherdebt securities upto 10% of its total assets for meetingliquidity requirements of the Scheme.

E. WHAT ARE THE INVESTMENT STRATEGIES?

The AMC uses a passive approach to try andachieve schemes investment objective. The Schemeinvests in the underlying asset viz gold regardless ofits investment merit.

All the investment decisions will be taken by thedesignated Fund Manager under the supervisionsof Head-Equities or such other designated authority.

The Fund Manager would monitor the tracking errorof the Scheme on an ongoing basis and would seekto minimise tracking error to the maximum extentpossible. There is no assurance or guarantee that theScheme will achieve any particular level of trackingerror relative to the performance of the underlyingasset.

Portfolio Turnover refers to the volume of trading thatoccurs in a Schemes Portfolio during a speciedperiod of time. As the Scheme is open ended andthere could be a number of creations/redemptionstaking place through Authorised Participants/others, itwould be difcult to estimate the portfolio turnover ofthe Scheme with any reasonable accuracy.

F. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the

scheme, in terms of Regulation 18 (15A) of the SEBI(MF) Regulations:

(i) Type of a scheme

A passively managed open-ended ExchangeTraded Fund designed to track the performanceand yield of the underlying asset viz., gold.

(ii) Investment Objective

Main Objective As given in clause II B

Investment pattern As given in clause II C

(iii) Terms of Issue

Liquidity provision of redemption: Onlyprovisions relating to redemption as givenin Section III (A) - Ongoing Offer Details Page Nos. 14 to 17.

Aggregate Expense and Fees [as givenin clause IV (A) (1) to (2)] charged to thescheme.


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In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the

fundamental attributes of the Scheme and the Options thereunder or the trust or fee and expenses payable or any

other change which would modify the Scheme(s) and the Plans thereunder and affect the interests of Unit holders is

carried out unless:

A written communication about the proposed change is sent to each Unit holder and an advertisement is given in one

English daily newspaper having nation-wide circulation as well as in a newspaper published in the language of theregion where the Head Ofce of the Mutual Fund is situated; and

The Unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit

load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

UTI-Gold Exchange Traded Fund will be benchmarked against the price of gold. The benchmark may be changed in

future, if a benchmark better suited to the investment objective of the scheme is available.

H. WHO MANAGES THE SCHEME?

Lalit Nambiar is the fund manager of UTI-Gold Exchange Traded Fund

Age(in yrs)

Qualications Experience Other Schemes managed

42 B.Com, MMS, CFA He has been with UTI AMC since

December, 2006. He took up portfolio

responsibilities in July, 2007. In

addition to managing equity portfolios,

he also leads the equity research in

the capacity of Head (Research). He

began his career in June 1994, with IIT

InvesTrust Limited as Senior Manager

in Research Department. He then joined

UTI Securities Limited in October, 1999

and continued till June, 2004 as Senior

Analyst in Research Department. He

joined SBI Capital Markets Ltd. as AVP

in Research Department from January,

2004 to December, 2006.

UTI-India Lifestyle Fund

UTI-Pharma & Healthcare Fund

UTI-Wealth Builder Fund Series II

UTI-Long Term Advantage Fund I & II

UTI-Services Industries Fund

UTI-Banking Sector Fund

I. WHAT ARE THE INVESTMENT RESTRICTIONS?

(a) The AMC uses a passive approach to try and achieve scheme investment objective. The scheme invests in

gold and gold related instruments as an asset regardless of its investment merit.

(b) The Scheme will invest at least 90% of its total assets in the Gold and gold related instruments. It may hold upto

10% of its total assets in money market securities and other debt securities.

(c) The scheme will not accept underwriting and sub underwriting obligations.

(d) (i) This scheme may participate in the securities lending programme, in accordance with the terms of securities

lending scheme announced by SEBI. The activity shall be carried out through approved intermediary.

(ii) If mutual funds are permitted to borrow securities, the scheme may, in appropriate circumstances borrow

securities in accordance with SEBI guidelines in that regard.

(e) UTI Goldshare units will be held in dematerialized form. The rule of SEBI (Depositories and Participants)

Regulations, 1996 would apply. The service charges payable to the depository participant will form part of annual

recurring expenses.


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(f) The scheme shall not invest more than 10% of

units NAV in debt instruments issued by a single

issuer, which are rated not below investment

grade by a credit rating agency authorised to

carry out such activity by SEBI. Provided that

this limit shall not be applicable to investments

in money market instruments and GovernmentSecurities.

(g) The scheme shall not invest more than 10% of

its NAV in unrated debt instruments issued by

a single issuer and the total investment in such

instruments shall not exceed 10% of the NAV of

the scheme. All such investments shall be made

with the prior approval of the Board of Directors

and Board of the AMC.

UTI Mutual Fund may constitute committees who

can approve proposals for investments in unrated

instruments. However, the detailed parameters

for such investments shall be approved by the

AMC Boards and the Trustees. The details ofsuch investments shall be communicated by UTI

AMC to the Trustees in their periodical reports.

However, in case any secur ity does not fall under

the parameters, the prior approval of the Boards

of AMC and Trustees shall be required.

(h) Debentures, irrespective of any residual maturity

period (above or below one year), shall attract

the investment restrictions as applicable for

debt instruments as specied under clauseI (f) and (g) above. It is further claried thatthe investment limits at I (f) and (g) above are

applicable to all debt securities, which are issued

by public bodies/ institutions such as electricity

boards, municipal corporations, state transportcorporations etc. guaranteed by either state

or central government. Government securities

issued by Central/State government or on

its behalf by RBI are exempt from the above

investment limits.

(i) No term loans will be advanced by this scheme

for any purpose as per SEBI regulation 44(3) of

SEBI (Mutual Funds) Regulations 1996.

(j) Pending deployment of funds of the scheme in

gold and gold related instruments in accordance

with the investment objective of the scheme as

stated above, funds may be invested in short-

term deposits of scheduled commercial banks

and/or in other money market instruments.

(k) The Scheme shall not make any investment in

any fund of fund scheme.

(l) Review by Board of AMC and Trustee

Company

A detailed review of the scheme will be placed

before the Board of Directors of AMC and the

Trustee Company on a quarterly basis. The

review will contain information about the inowin the scheme, outow from the scheme andrebalancing of portfolio.

(m) The Scheme/UTI AMC may in the interest of

scheme consider buyback of the UTI Goldshare

units from the market to enhance value of the

scheme as permissible under the SEBI (MFs)

Regulations. Units bought back will be cancelled

as per procedure that may be laid down by the

AMC from time to time.

(n) Inter Scheme Transfers, if any, from/to the

Scheme shall be as per the SEBI (Mutual Fund)

Regulations. Please refer to SAI for details.

J. HOW HAS THE SCHEME PERFORMED?

Compounded Annualised Returns as on November

30, 2013

Period UTI Gold

ETF (%)

Domestic

price of

Gold (%)

Last one year -13.17 -12.22

Last three years 9.16 10.28

Last ve years 14.93 16.09

Returns since inception 16.68 17.84

Past performance may or may not be sustained in future.


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K. ABOUT UTI GOLD ETF

Case for investing in Gold

For hundreds of years, gold has been considered forits unique character of being a store of value. Besides,it is valued as a safe haven during economic and

political crises and also viewed as a hedge againstination.

All forms of investments carry some degree of risk.Holding gold directly also has risks. However, includinggold in a well-balanced portfolio can help diversifyrisk. Golds ability to serve as a portfolio diversieris due to its historically low-to-negative correlationwith stocks and bonds. The economic forces thatdetermine the price of gold are different from the forcesthat determine the prices of most nancial assets. Theprice of gold depends upon various factors, includingthe supply and demand for gold, the strength orweakness of major foreign currency especially dollar,the rate of ination, and interest rates and the current

political environment. Gold is not a subject to the riskof default or bankruptcy. Financial advisors usuallyrecommend adding gold to ones portfolio to diversifythe risk of the portfolio Exchange Traded Funds(ETFs) and UTI Gold ETF.

Exchange Traded Funds are passively managedfunds tracking a benchmark index and reect theperformance of that index. They have the exibility oftrading like a share and offer the best features of openand close end funds. Gold ETFs are exchange tradedproducts that provide exposure to the underlyingphysical gold on the stock exchanges at which theyare listed as a single stock.

UTI-Gold Exchange Traded Fund (UTI-Gold ETF), an

Open Ended Exchange Traded Fund, will passivelytrack the performance Gold Bullion. The unitsissued under the scheme will be referred to as UTIGoldshare units and represents the value of gold heldin the scheme. The Goldshare unit being offered willhave a face value of `100/ each and will be issuedat a premium equivalent to the difference between theallotment price and the face value of `100/-. UTI-GoldETF offers investors a new, innovative, relatively costefcient and secure way to access the gold market.

UTIGoldshare units are intended to offer investorsa means of participating in the gold bullion marketby buying and selling without the necessity of takingphysical delivery of gold. The introduction of UTIGoldshare units is intended to lower many of thebarriers, such as access, custody, and transactioncosts, that have prevented some investors frominvesting in gold. ETFs are bought / sold as mentionedbelow:

a. Large players also known as authorizedparticipants swap creation units for gold inphysical form or in the form of cash.

b. The secondary markets where the ETFs aretraded like units of common securities on thestock exchange(s) during the trading hours.

c. Post NFO, the UTI Goldshare units are listed andtraded on the National Stock Exchange (NSE)under the symbol/ticker name GOLDSHARE.Investors may also purchase these Units throughonline mode by placing orders with online brokingentities using the symbol/ticker name assignedby them.

The advantages of the UTI-Gold ETF over direct

investment in gold are:

1. Investors who want a cost effective andconvenient way to invest in gold can getinstantaneous exposure to a physical asset vizgold.

2. Its units can be traded like a share and thereforeit provides the ability to buy and sell them quicklyat the ruling market price unlike gold that can besold only for a discount and by a cumbersomeprocess.

3. The expenses incurred in buying and sellingUTI Goldshare units and the schemes ongoingexpenses will be less than the costs associatedwith buying and selling of gold and storing andinsuring gold bullion in a traditional gold bullionmarket.

4. Minimum investment in ETF in secondarymarkets is one unit representing approximatelyone gram of gold in the beginning and the weightof gold representing 1 unit keeps reducing to theextent of expenses.

5. Helps investors to diversify across asset classes.

Tracking Error The performance of the scheme may not be

commensurate with the performance of the underlyingasset on any given day or over any given per iod. Suchvariation referred to as tracking error may result from avariety of factors whatsoever including but not limitedto:

Expenditure incurred by the scheme.

The potential for trades to fail which may result inthe Scheme not having acquired gold at a pricenecessary to track the underlying asset.

The Benchmark reects the prices of gold atclose of business hours. However the schememay buy or ofoad gold at different points of time

during the trading session at the then prevailingprices, which may not correspond to the closingprices of gold.

The holding of a cash position and accruedexpenses. Sale to meet redemptions, recurringexpenses etc.


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III. UNITS & OFFER

This section provides details you need to know for investing in the scheme.

A. ONGOING OFFER DETAILS

Ongoing Offer Period

This is the date from which the Scheme willbe open for subscription / redemption afterthe closure of the NFO period.

The Scheme opened for trading and subscription consequent on listing ofunits on the NSE with effect from 17th April 2007.

Ongoing price for purchase and sale orcreation/redemption of Units by investors.

This is the price you need to pay/receivefor purchase/redemption

Investment on an ongoing basis in secondary markets.

An investor can buy/sell units of UTI Goldshare units on a continuous basis onthe National Stock Exchange other recognized stock exchanges where UTIGoldshare units are listed and traded like any other publicly traded securitiesat prices which may be close to the actual NAV of the scheme. There is nominimum investment. The trading lot is one UTI Goldshare units. Investors canpurchase UTI Goldshare units at market prices, which may be at a premium/discount to the NAV of the scheme depending upon the demand and supplyof UTI Goldshare units at the exchanges.

Entry/Exit LoadThere will be no entry/exit load on UTI Goldshare units bought or soldthrough the secondary market. An investor may have to incur brokerage orcommission as charged by his broker and may have to bear the impact costwhile buying/selling the UTI Goldshare units.

Settlement of purchase/sale of UTI Goldshare units on the stock

exchange

Buying / Selling UTI Goldshare units on the stock exchange is just like buying/ selling any other normal listed securities. If an investor has bought units,an investor has to pay the purchase amount to the broker / sub-broker suchthat the amount paid is realised before the funds pay-in day of the settlementcycle on the exchange. If an investor has sold units, an investor has to deliverthe units to the broker/sub-broker before the securities pay-in day of thesettlement cycle on the exchange. The units (in case of units bought) and the

funds (in the case of units sold) are paid out to the broker on the payout dayof the settlement cycle on the exchange. The exchange regulations stipulatethat the trading member should pay the money or units to the investor within24 hours of the payout. (SEBI SMD/POLICY/ Cir-/03 dated February 6, 2003).

If an investor has bought units, he should give standing instructions forDelivery-In to his/ her DP for accepting units in his/her beneciary account.An investor should give the details of his/her beneciary account and theDPID of his/her DP to his/her trading member. The trading member willtransfer the units directly to his/her beneciary account on receipt of the samefrom exchanges clearing corporation.

An investor who has sold units should instruct his/her depository participant(DP) to give Delivery Out instructions to transfer the units from his/hertrading member through whom he/she have sold the units. The details of thepool A/c of his/her trading member to which the units are to be transferred,

unit quantity etc. should be mentioned in the delivery out instructions given byhim/her to the DP. The instructions should be given well before the prescribedsecurities pay-in day. SEBI has advised that the delivery out instructionsshould be given atleast 24 hours prior to the cut off time for the prescribedsecurities pay in to avoid any rejection of instructions due to data entry errors,network problems, etc.


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All transactions in secondary market for trading and settlement of unitswill be subject to the rules and regulations of the stock exchanges /SEBI/Depositories/other relevant authority as may be prescribed from time to time.

Creation and redemption of units directly with the Fund

The AMC will create and redeem units on a continuous basis, but only in one

or more baskets (a basket approximately equals 1000 units) The creationand redemption of baskets will only be made in exchange for the deliveryto or by the scheme of the amount of gold and cash, if any, represented bythe baskets being created or redeemed. The total amount of gold and cashif any required for such a delivery will be based on the prorata amount of theNAV of the scheme represented by the baskets being created or redeemeddetermined on the day the order to create or redeem is placed.

Authorized participants may act for their own accounts or as agents for brokerdealers, custodians and other securities market participants that wish tocreate or redeem baskets. An order of one or more baskets may be placed byan authorized participants on behalf of multiple clients.

Unitholders who are not authorized participants will only be able to redeemtheir units through an authorized participant.

The custodian will allocate specic bars of gold representing the amount of

gold (to the extent such amount is representable by whole gold bars) to theschemes allocated account.

All gold bullion held in the schemes allocated account with the custodianmust be of neness (or purity) of 995 parts per 1000 (99.5%)

Creation Procedures

On any business day, an Authorized Participant may submit an Applicationwith the AMC.

Applications must be placed by 3:00 p.m. or the close of regular trading on theNSE, whichever is earlier. By submitting the application for purchase of units,an Authorized Participant agrees to deposit gold and the cash component inthe schemes account.

The Authorized participant has the option to deposit at least 1 kilogram ofphysical gold & in multiples of 1 kilogram thereof along with the applicable cash

component in order to create units of the scheme. The gold bars depositedshould bear the certicate issued by a rener or manufacturer accredited byLondon Bullion Market Association. A copy of the acceptance receipt has tobe submitted at the designated places of AMC.

The AMC may at its own discretion, allow cash purchases by accepting cashfrom the Authorized participants/others. Units will be allotted on the date ofrealisation. Purchase request for creation units shall be made by such investorto the AMC whereupon the AMC will arrange to buy gold. The AMC has theright to collect any cost incurred by the AMC in terms of the transactioncharges, other incidental charges, the difference between the acquisition costand closing prices of gold at the end of each business day. Such costs maybe adjusted by allotting proportionately lesser number of units to the investor.

The AMC may levy a fees/load/charges to be announced from time to time,for this facility.


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Determination of required deposits

The total deposit required to create each basket will be an amount of gold or/and cash that is in the same proportion to the total assets of the scheme (netof accrued but unpaid fees, expenses and other liabilities) on the date theorder to purchase is properly received as the number of units to be created

in respect of the deposit bears to the total number of units outstanding on thedate the order is received.

Delivery of required deposits

An authorised Participant submits an application for the process of creationof units. By submitting the application the Authorized participant agrees todeposit physical gold to the custodian by T+1date. On having credited theschemes allocated account with the gold deposits in physical form, the AMCintimates the registrar the total number of units to be created. The creation ofunits will be at the NAV of the fund on T day. The registrar will then allocate theunits in the proportion of the amount received from the authorized participantand will credit the units to the demat account of the respective authorizedparticipants.

Redemption Procedures

The procedure by which an authorized participant can redeem one or more

baskets will mirror the procedure for the creation of units. On any business day,an authorized participant may send a redemption request to the AMC. AMCwill, based on the redemption application and request forms received from theAuthorised Participant, instruct the Registrars to conrm the transaction. Thecustodian will deliver the gold in physical form to the nearest Kilogram and thebalance amount, if any, will be paid/received in cash by AMC.

The redemption of gold will be made only in physical form to the authorizedparticipants. The delivery of physical gold will be subject to MumbaiJurisdiction and or at such other place as may be decided by UTI AMC Ltd.The redemption price will be based on the NAV of the same business day.

These redemption procedures allow authorized participants to redeembaskets and do not entitle an individual unit holder to redeem any units inan amount less than a basket or to redeem baskets other than through anauthorized participant.

By placing a redemption order, an authorized participant agrees to deliverthe units to be redeemed along with the cash component, if any, to the AMC.

However, the AMC at its discretion may allow redemption of units of UTIGold ETF to investors other than authorized participants if there is insufcientliquidity in the secondary market.

Despatch of redemption proceeds: The AMC will deliver physical gold ofthe specied quality and quantity only to the authorized participants within 5business days from the date of receipt of redemption request.

Redemption of units

Redemption of UTI Goldshare units will be open throughout the year exceptduring the book closure period/s

1. Minimum number of units to be redeemed by the AMC shall be increation unit size.

2. Applications for redemption of UTI Goldshare units have to be submittedin the prescribed format duly completed and signed along with thedelivery order duly receipted by the DP stating the number of UTIGoldshare units transferred to the schemes DP account.


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3. Application for redemption by non-individuals should be accompaniedby certied copy (ies) of the board/governing body resolution clearlyauthorizing the ofcial concerned to redeem units and to receive/collectgold/cash after complying with operational procedure and formalities.

4. The application for redemption on a form prescribed by the AMC will

have to be submitted at the designated place before the cut off time.

5. The expenses associated with taking physical delivery of gold will haveto be borne by the authorized participant

Cut off timing for subscriptions/redemptions/switches

This is the time before which your application(complete in all respects) should reach theofcial points of acceptance.

Applications must be placed by 3:00 p.m. or the close of regular trading on theNSE, whichever is earlier.

Creation/redemption of units would, however, be based on Portfolio depositand the applicable cash component for the respective business day on whichsuch creation/ redemption of units are made.

As the Scheme is listed and traded on the NSE, the provisions of cut off timeis not applicable for secondary market transactions which will be subject tothe trading time/restrictions for purchase/sale of units as per the rules andregulations prescribed by the stock exchanges on which they are listed.

For details relating to applicable NAV in relation to the cut off time, pleaserefer to SAI.

Where can the applications for purchase/redemption switches be submitted?

Applications can be submitted at the Lotus court UFC of the AMC or at suchother authorised ofcial points of acceptance as may be designated by theAMC from time to time. It is mandatory for investors to mention their bankparticulars in their application/requests for redemption.

The details of ofcial points of acceptance are given on the back cover page.

Minimum amount for purchase/ redemption. Directly with the Fund: The amount payable for the number of units of theScheme that Authorised Participants can create/redeem in exchange ofportfolio deposit and cash component for one creation unit size at NAV basedprices

On the Exchange: 1 unit at the prices quoted on the NSE/other recognisedstock exchanges on which they are listed.

Know Your Customer (KYC) Norms

With effect from 1st

January 2012, Uniform KYC compliance done throughCDSL Ventures Ltd (CVL) or other SEBI Authorised KYC Registration Agency(KRA) is applicable for all categories of investors and for any amount ofinvestment. KYC done once with a SEBI registered intermediary will be validwith another intermediary registered with SEBI. Such Intermediaries shallcarry out In-Person Verication (IPV) of their clients for the KYC process

Please refer to the SAI for further details on KYC.

Minimum balance to be maintained andconsequences of non maintenance.

Nil

Special products available Systematic Investment Plan, Systematic withdrawal Plan and SystematicInvestment Transfer Plan: Not applicable.

Accounts Statements As the units of the Scheme are in demat form, investors would be providedwith a statement of holdings by their Depository Participant as per the rulesand regulations of the depository.


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Nomination Since the units of the scheme will be issued in electronic form in the depositoryaccount of the unit holder, the nomination registered with the Depository willbe applicable to the units of the scheme.

Dividend Policy No dividend will normally be distributed under the Scheme.

Dividend If it is decided to make payment of the dividend distribution, if any, the samewill be paid by issue of dividend distribution warrants or through ECS withina period not exceeding 30 days from the date of declaration of such dividenddistribution or such period as may be prescribed by SEBI from time to time.

In case of delay in payment of dividend amount, the Asset ManagementCompany shall be liable to pay interest to the unitholders at such rate asmay be specied by SEBI for the period of such delay (presently @ 15% perannum).

For all the dividends declared, if the dividend amount payable to theunit holders under the Dividend Payout option under a folio is less than

` 250/- and where complete bank account details are not available or facilityof electronic credit is not available with Investors Bank/Bank Branch, thensuch amount will be compulsorily reinvested wherever reinvestment optionis available under the scheme and an account statement will be sent to theinvestors at their Registered Address.

Redemption For redemption request directly received with the Fund

The redemption proceeds will consist of physical gold and cash component,if any. While, the physical gold will be delivered by the custodian to theapplicants on the basis of delivery instructions issued by the AMC to thecustodian, the cash component, if any, forming part of the proceeds, will bepaid by the AMC. The redemption proceeds will be delivered / paid within 5business days from the date of a valid redemption request.

Sale of units at the stock exchange.

Any investor may sell the units on the stock exchange on which the units arelisted at prices traded on such exchange.

Delay in payment of redemption/ repurchase

proceeds

The AMC shall be liable to pay interest to the unit holders at such rate as

may be specied by SEBI for the period of such delay (presently @ 15% perannum).

Book closure period/Record date The purchase and redemption of units shall remain open throughout the yearexcept during book closure period/s not exceeding 15 days in a year.

Suspension of purchase / Redemption /Right to limit redemption/Restrictions onpurchase and redemption of units.

The Trustee may decide to temporarily suspend determination of NAVof the Scheme offered in this Document, and consequently purchase andredemption of units, in any of the following events:

a) When the bullion markets in London and forex markets which providebasis for valuation are closed otherwise than for ordinary holidays.

b) When, as a result of political, economic or monetary events or anycircumstances outside the control of UTI AMC, the disposal of the assetsof the Scheme is not reasonable, or would not reasonably be practicablewithout being detrimental to the interests of the unitholders.

c) In the event of breakdown in the means of communication used for thevaluation of investments of the Scheme, without which the value of thesecurities of the Scheme cannot be accurately calculated.

d) During periods of extreme volatility of markets, which in the opinion of UTIAMC are prejudicial to the interests of the unitholders of the Scheme.

e) In case of natural calamities, strikes, riots and bandhs.


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f) In the event of any force majeure or disaster that effects the normalfunctioning of the AMC or the Registrar.

g) If so directed by SEBI.

h) The purchase of units may also be suspended if, in the Trustees or AMCsview, increasing the Schemes size any further may prove detrimental tothe existing unitholders.

In the above eventualities the time limits indicated in the Scheme InformationDocument for processing of requests for purchase and redemption of unitswill not be applicable.

The approval of the Board of the AMC and the Trustee giving details ofcircumstances and justication for the suspension of redemption shall beinformed to SEBI in advance.

For details regarding Right to limit redemption and Restrictions on purchaseand redemption of units, and other provisions relating to redemptions, pleaserefer to SAI.

Risk Mitigation process against Third PartyCheques

Restriction on Third Party Payments

Third party payments are not accepted in any of the schemes of UTI Mutual

Fund subject to certain exceptions.Third Party Payments means the payment made through instruments issuedfrom an account other than that of the beneciary investor mentioned in theapplication form. However, in case of payments from a joint bank account, therst named applicant/investor has to be one of the joint holders of the bankaccount from which payment is made

Bank Mandate registration as part of the new folio creation

In order to reduce the r isk of frauds and operational risks and thereby protectthe interests of the Unit holders/Investors from fraudulent encashment ofredemption/dividend proceeds, Investors are required to submit any of theprescribed documents (along with original document for verication) in supportof the bank mandate mentioned in the application form for subscription undera new folio, in case these details are not the same as the bank account fromwhich the investment is made

In case, the application for subscription does not comply with the aboverequirements, UTI AMC, at its sole and absolute discretion, may reject/notprocess such application and may refund the subscription amount to the bankaccount from where the investment was made and shall not be liable for anysuch rejection/refund

For further details on documents to be submitted under the process to identifythird party payments etc, please refer to SAI/relevant Addenda

Who can invest

This is an indicative list and you arerequested to consult your nancial advisorto ascertain whether the Scheme is suitableto your risk prole.

An application for issue of units may be made by any resident or non-residentIndian as well as non individuals as indicated below:

(i) a resident individual or a NRI or person of Indian origin residing abroadeither singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in hispersonal capacity or in his capacity as an ofcer of a Government or of aCourt,

(ii) a parent, step-parent or other lawful guardian on behalf of a resident or aNRI minor,

(iii) an association of persons or body of individuals whether incorporated ornot,

(iv) a Hindu Undivided Family both resident and nonresident,

(v) a body corporate including a company formed under the Companies Act,1956 or established under State or Central Law for the time being in force,


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(vi) a bank including a scheduled bank, a regional rural bank, a co-operativebank etc,

(vii) an eligible trust including Private Trust being irrevocable trust andcreated by an instrument in writing,

(viii) a society as dened under the scheme,

(ix) a Financial Institution,

(x) an Army/Navy/Air Force/Paramilitary Fund,

(xi) a partnership rm,

(An application by a partnership rm shall be made by not more thanthree partners of the rm and the rst named person shall be recognisedby UTI AMC for all practical purposes as the unitholder. The rstnamed person in the application form should either be authorised byall remaining partners to sign on behalf of them or the partnership deedsubmitted by the partnership rm should so provide.)

(xii) FIIs registered with SEBI,

(xiii) Mutual Funds, and

(xiv) Authorised Participants

(xv) Any other Category

Subject to Regulations, the Sponsors, the Mutual Funds managed by them,their associates and the AMC may acquire units of the Scheme. The AMCshall not be entitled to charge any fees on its investments in the Scheme.

Non-acceptance of subscriptions from US Persons including Qualied

Foreign Investors (QFIs) registered in USA and Canada and Residents

of Canada in the Schemes of UTI MF.

As per the requirements of the Securities and Exchanges Commission (SEC)of USA, person falling within the denition of the term US Person underthe Securities Act of 1933 of U.S.A (Act) and corporations or other entitiesorganized under the law of the U.S. are not permitted to make investmentsin securities not registered under the Act [The term US Person means anyperson who is a U.S. person within the meaning of Regulation S under the Actor as dened by the U.S. Commodity Futures Trading Commission or as persuch further amended denitions, interpretations, legislation, rules etc as maybe in force from time to time].

Further, as per the Canadian Securities Administrator (CSA), prior registrationof a fund with CSA is mandatory before its marketing or selling to residentsof Canada.

The Schemes of UTI MF are presently not registered under the relevantlaws, as applicable in the territorial jurisdiction of U.S. or in any provincial orterritorial jurisdiction of Canada.

US Persons, corporations and other entities organized under the applicablelaws of the U.S including Qualied Foreign Investors (QFIs) registered in USAand Canada and Residents of Canada as dened under the applicable lawsof Canada are not allowed to invest in units of any of the Schemes of UTI MF

and should also note the following:


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a. No fresh purchases (including Systematic Investment Plans andSystematic Transfer Plans) /additional purchases/switches in anySchemes of UTI MF would be allowed. However, existing Unit Holder(s)will be allowed to redeem their units from the Schemes of the Fund. Ifexisting Unit Holder(s) subsequently becomes a U.S. Person or Resident

of Canada, then such Unit Holder(s) will not be able to purchase anyadditional Units in any of the Scheme of the Fund.

b. All existing registered Systematic Investment Plans and SystematicTransfer Plans would be ceased from the effective date.

c. For transactions through Stock Exchange platform, while transferringunits from the broker account to investor account, if the investor has U.S./Canadian address then the transactions would be rejected.

d. In case UTI Asset Management Company Ltd. (UTI AMC) / UTI MutualFund subsequently indenties that the subscription amount is receivedfrom U.S. Person(s) including Qualied Foreign Investors (QFIs)registered in USA and Canada or Resident(s) of Canada, in that casethe UTI AMC/UTI MF at its discretion shall summarily redeem all theunits held by such person/s in the respective Scheme/s of UTI MF atapplicable Net Asset Value as on the date of redemption.

For further details refer to SAI/relevant Addendum

Investment by individuals Foreign Nationals

For the purposes of carrying out the transactions by the Foreign Nationals inthe units of the Schemes of UTI Mutual Fund,

1. Foreign Nationals shall be resident in India as per the provisions of theForeign Exchange Management Act, 1999.

2. Foreign Nationals are required to comply (including taking necessaryapprovals) with all the laws, rules, regulations, guidelines and circulars,as may be issued/ applicable from time to time, including but not limitedto and pertaining to anti money laundering, know your customer (KYC),income tax, foreign exchange management (the Foreign ExchangeManagement Act, 1999 and the Rules and Regulations made thereunder)including in all the applicable jurisdictions.

How to apply Please refer to SAI and application form for the instructions.

Dematerialisation (a) UTI Goldshare units will be available only in the dematerialized form.

(b) Applicants under the scheme will be required to have a beneciaryaccount with a DP of NSDL/ CDSL and will be required to indicate in theapplication the DPs name, DP ID number and its beneciary accountnumber with the DP.

(c) Since UTI Goldshare units are issued / repurchased and tradedcompulsorily in dematerialized form, no request for rematerialisation ofUTI Goldshare units will be entertained.

Mode of Payment For direct creation with the Fund

(a) Portfolio deposit:The authorized participant will be required to deposit

gold of the prespecied purity with the custodian in the proportion asdeclared by AMC from time to time.

(b) Cash Component:For the cash component all cheques, bank drafts andpay order should be drawn in favour of UTI Gold Exchange TradedFundand be crossed Account Payee Only.

(c) If the instruments for cash component is not honoured for any reasonwhatsoever, the application is liable to be rejected.


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Listing The units of the Scheme are listed on the NSE under the capital marketsegment. However, the AMC reserves the right to list the units of the Schemeon any other recogonised stock exchange(s).

Transfer/Pledge/Assignment of Units Transfer

UTI Goldshare units are transferable. Transfers should be only in favour oftransferees who are capable of holding units. The AMC shall not be bound torecognize any other transfer. The AMC will effect the transfer only in electronicform provided that the intended transferee is otherwise eligible to hold unitsunder the scheme. The delivery instructions for transfer of UTI Goldshareunits will have to be lodged with the DP in the requisite form as may berequired from time to time and the transfer will be effected in accordance withsuch rules / regulations as may be in force governing transfer of securitiesin dematerialised mode. Under special circumstances, holding of units by acompany or other body corporate with another company or body corporateor an individual/ individuals, none of whom is a minor, may be considered bythe AMC.

Pledge/Assignment of units permitted only in favour of banks/other

nancial institutions

The uniholders may pledge/assign units in favour of banks/other nancialinstitutions as a security for raising loans. Units can be pledged by completingthe requisite forms/formalities as may be required by the Depository. Thepledger may not be allowed to redeem units so pledged until the bank/ nancialinstitution to which the units are pledged provides a written authorization tothe Depository that the pledge/ charge/lien may be removed.

Option offered under the scheme The scheme reserves the right to introduce/alter/ extinguish options at a laterdate.

Policy regarding reissue of repurchasedunits, including the maximum extent, themanner of reissue, the entity (the schemeor the AMC) involved in the same.

Presently, the AMC does not intend to re issue the units once redeemed.The number of units held by the unit holder in his demat account will standreduced by the number of units redeemed.

Role of Custodian The Custodian is responsible for safekeeping of the Schemes gold deposited

with it by Authorized Participants in connection with the creation of Baskets.The Custodian is responsible for allocating specic bars of gold bullion to thescheme Allocated Account. The Custodian will provide the AMC with regularreports detailing with identifying the gold bars held in the scheme AllocatedAccount.

The Custodian may also from time to time act as Authorized Participantsor purchase or sell gold or units for their own account, as agent for theircustomers and for accounts over which they exercise investment discretion.

Bank of Nova Scotia will act as the custodian of UTI-Gold Exchange TradedFund.

Custody of the schemes gold

Custody of the gold bullion deposited with and held by the scheme is providedby the custodian at its, Mumbai Vaults.

The custodian, as instructed by the AMC, is authorized to accept, on behalfof the AMC, deposits of gold. On the instructions given by the AMC, thecustodian allocates gold by selecting bars of gold bullion for deposit to theschemes allocated account.

The AMC and the custodian enter into the custody agreements, whichestablish the allocated account. The gold deposited with the scheme is heldin the scheme allocated account.


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Under the agreement entered into by the AMC and the custodian, thecustodian is responsible for the safekeeping of the gold held on behalf ofthe AMC. The custodian is responsible for any loss or damage suffered bythe scheme as a direct result of any negligence, fraud or willful default in theperformance of its duties. The custodians liability is limited to the market

value of the gold held in the schemes allocated account at the time suchnegligence, fraud or willful default is discovered by the custodian, providedthat the custodian promptly noties the AMC of its discovery.

In the event of a loss caused by the failure of the custodian to exercisereasonable care, the AMC has the right to seek recovery with respect to theloss against the custodian in breach.

Allocated Accounts:An allocated account is an account with a bank, towhich individually identied gold bars owned by the account holder arecredited. The gold bars in an allocated gold account are specic to thataccount and are identied by a list which shows, for each gold bar, the rener,assay or neness, serial number and ne weight. The account holder has fullownership of the gold bars and, except as instructed by the account holder,the bank may not trade, lease or lend the bars.

Transfer of Gold:At the end of each business day gold is transferred to

the schemes allocated account. The custodian allocates specic bars of goldfrom its gold stocks, so that allocated gold bars represent the amount of goldcredited to the extent such amount is represent able by whole bars. The barsof gold should be held directly by the Custodian. The custodian updates itsrecords at the end of each business day to identify the specic bars of goldallocated to the scheme.

The withdrawal of gold from the scheme for the purpose of redemption willfollow the same procedure in the reverse order.

Description of the custody agreements

Reports:

The custodian provides the AMC with reports for each business day, no laterthan the following business day, identifying the movements of gold in and outof the schemes allocated account.

The monthly statement contains sufcient information to identify each bar ofgold held in the scheme allocated account and the custodian or sub-custodianhaving possession of such bar.

Sub-custodians:

The custodian may select Sub-custodians to perform any of its duties,including holding gold for it. The sub-custodians selected by the custodianswill have to be informed by the custodians to the AMC. Any additions or stopsof sub-custodians will have to be reported to the AMC on a periodic basis.

Custodian may, with the prior written consent of AMC, entrust Gold held in theAccount to a specied sub-custodian that is eligible to act as a custodian ofGold under applicable laws and regulations (a Sub-Custodian) selected byCustodian with due care.

The custodian shall remain responsible in all respects to its client forsafekeeping of the gold kept with such other person, including any associated

risks. The custodian of securities shall continue to fulll all duties to the clientsrelating to the gold so kept with the other person, except for its physicalsafekeeping.

All books, documents and other records relating to the gold so kept with theother person shall be maintained in the premises of the custodian or if theyare not so maintained, they shall be made available therein.


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Location & Segregation of Gold

Gold held for schemes allocated account by the custodian or sub-custodiansappointed by the custodians is held at the custodians Vaults in Mumbai.The custodians books and records will identify every bar of gold held in theschemes allocated account in its own vault by rener, assay or neness,

serial number and gross and ne weight.The AMC may upon reasonable notice, visit the custodians premises andexamine the schemes gold held there and the custodians records concerningthe schemes allocated account. The AMCs independent auditors may alsovisit the custodians premises in connection with their audit of the nancialstatements of the scheme.

Insurance

The custodian will maintain insurance for its bullion and custody business.The AMC and the sponsor may subject to condentiality restrictions, reviewthis insurance coverage from time to time.

Termination / winding up of the scheme (a) The winding up/termination of the scheme shall be governed by SEBI(Mutual Funds) Regulation, 1996. In case of any inconsistency containedin the provisions of this Scheme Information Document with the SEBI

(Mutual Funds) Regulations, 1996, the SEBI (MF) Regulations shallprevail.

(b) UTI-Gold Exchange Traded Fund is an open-ended scheme. TheTrustee may, however, terminate and initiate steps to wind it up underthe following circumstances:

i) if the outstanding holding in the scheme falls below a limit to be decidedby the Trustee.

ii) on the happening of any event which in the opinion of the Trustee requiresthe scheme to be wound up, or

iii) if 75% of the unitholders of the scheme pass a resolution to the effect thatthe scheme be wound up; or

iv) if the SEBI so directs in the interest of the unitholders of the scheme.

(c) Where the scheme is wound up/terminated in pursuance of sub clause(b) above, The Trustee shall give notice of the circumstances leading to

the winding up/ termination of the scheme to SEBI and also in two dailynewspapers having circulation all over India and also in a vernacularnewspaper circulating in Mumbai before the termination/ winding up iseffected as stipulated in SEBI (MFs) Regulations from time to time.

(d) On and from the date of advertisement indicating the termination/windingup, the AMC shall cease to carry on any business activities in respect ofthe scheme and cease to issue, redeem and cancel units in the scheme.

(e) The Trustee shall call a meeting of the unitholders to consider and passnecessary resolution by simple majority of the unitholders present andvoting at the meeting for authorising the Trustee or any other person totake steps for termination/winding up of the scheme.

(f) The Trustee or the person authorised under sub clause (d) shall disposeof the assets of the scheme in the best interest of the unit holders of thescheme.

(g) The proceeds of underlying gold shall, in the rst instance be utilizedtowards discharge of such liabilities as are properly due under thescheme and after making appropriate provision for meeting theexpenses connected with such winding up/termination, the balance gold/instruments with gold as underlying assets/cash shall be distributedamongst the unitholders in proportion to their respective interest in theassets of the scheme as on the date xed for that purpose.


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(h) The AMC shall pay the terminal proceeds and/or return gold/cashequivalent to the terminal value of units a early as possible but within 10business days from the date on which the termination becomes effectiveor redemption request slip duly completed in the manner as may beprescribed from time to time, is received whichever is later and otherprocedural and operational formalities are complied with.

(i) On completion of the winding up, the Trustee shall forward to the SEBIand the unitholders a report on the winding up containing particulars suchas circumstances leading to the winding up, the steps taken for disposalof any of the assets of the scheme before winding up, expenses of thescheme for winding up, net assets available for distribution among theunitholders together with a certicate from the auditors of the scheme.

(j) To NRI investors terminal proceeds in terms of cash will be paid / returnedin India. Gold in physical form will not be delivered to NRIs.

(k) In case of FIIs, redemption proceeds will be only in terms of cash willbe credited to their Special Non- Resident Rupee Account. No gold inphysical form will be given to FIIs.

(l) Notwithstanding anything contained hereinabove, the application of theprovisions of SEBI (MFs) Regulations in respect of disclosures of halfyearly and annual reports shall continue until the winding up/termination

is completed or the scheme ceases to exist

(m) After the receipt of the report referred to in sub clause(l) above, if theSEBI is satised that all measures for winding up of the scheme havebeen completed, the scheme shall cease to exist.

B. PERIODIC DISCLOSURES

Net Asset ValueThis is the value per unit of the schemeon a particular day.You can ascertain the value of yourinvestments by multiplying the NAVwith your unit balance.

The Mutual Fund shall declare the Net asset value of the scheme on everybusiness day on AMFIs website www.amindia.com and also on the websiteof UTI Mutual Fund, www.utimf.com.The NAVs shall be calculated for all business days and released to the Press.

Monthly Portfolio Disclosure The Mutual Fund shall disclose portfolio (along with ISIN) as on the last dayof the month for all its schemes on its website on or before the tenth day of

the succeeding month in a user-friendly and downloadable format.The format for monthly portfolio disclosure shall be the same as that of halfyearly portfolio disclosures.

The Mutual Fund shall also disclose additional information (such as ratiosetc) subject to compliance with the SEBI Advertisement Code.

Half yearly Disclosures:Portfolio / Financial ResultsThis is a list of securities where thecorpus of the scheme is currentlyinvested. The market value of theseinvestments is also stated in portfoliodisclosures.

The Mutual Fund shall within one month from the close of each half year, (i .e.31st March and 30th September), host a soft copy of its unaudited nancialresults on its website.

The Mutual Fund shall publish an advertisement disclosing the hostingof such nancial results on the website, in atleast two newspaper onenational English daily newspaper having nationwide circulation and one in anewspaper having wide circulation published in the language of the regionwhere the Head Ofce of UTI MF is situated.

The Mutual Fund shall also, within one month from the close of each half year,(i.e. 31st March and 30th September), publish by way of an advertisement acomplete statement of its scheme portfolio in one English daily circulating inthe whole of India and in a newspaper published in the language of the regionwhere the head ofce of UTI MF is situated.


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Additional Disclosure: The Mutual Fund shall, in addition to the total commission and expenses paidto distributors, make additional disclosures regarding distributor-wise grossinows, net inows, AAUM and ratio of AUM to gross inows on its websiteon an yearly basis.

In case, the data mentioned above suggests that a distributor has an

excessive portfolio turnover ratio, i.e., more than two times the industryaverage, the AMC shall conduct additional due-diligence of such distributors.

The Mutual Fund shall also submit the data to AMFI and the consolidateddata in this regard shall be disclosed on AMFI website.

Annual Report An abridged annual report in respect of the scheme shall be mailed tothe unitholders not later than four months from the date of closure of therelevant accounting year and the full annual report shall be made availablefor inspection at UTI Tower, Gn Block, Bandra-Kurla Complex, Bandra(East), Mumbai 400 051. A copy of the full annual report shall also be madeavailable to the unitholders on request on payment of nominal fee, if any.

Associate Transactions Please refer to Statement of Additional Information (SAI).

Taxation :

The information is provided for general information only. However, in view of the individual nature of the implications,each investor is advised to consult his or her own tax advisors/ authorised dealers with respect to the specic amountof tax and other implications arising out of his or her participation in the schemes. For further details on taxationplease refer to the clause on Taxation in the SAI

Tax on Dividend Resident Investors

As per the section 10(35) of the Act, dividend received by investors under theschemes of UTI MF is exempt from income tax in the hands of the recipientunit holders.

As per section 115R of the Act, income distribution tax shall be levied at 25%plus surcharge for distribution made to Individuals. Further education cess@2% and seconda

ut i gold exchange

Documents