HSBC Mutual Fund announced the launch of HSBC Gold ETF, investing in physical gold or gold related instruments, and HSBC Gold ETF Fund of Fund (FoF), investing in units of HSBC Gold ETF. The launch marks the first ETF offerings from HSBC Mutual Fund in India. The New Fund Offer (NFO) schemes open for subscription this week.
NFO Period:
· HSBC Gold ETF – 16 to 18 March 2026
· HSBC Gold ETF Fund of Fund – 19 to 25 March 2026
Both funds will be managed by Dipan Parikh, HSBC Mutual Fund. HSBC Gold ETF will invest in physical gold, and the performance of the scheme will be benchmarked against the domestic price of gold. HSBC Gold ETF Fund of Fund will invest in the units of HSBC Gold ETF. These funds offer investors a convenient opportunity to invest in gold.
During the NFO period of HSBC Gold ETF and HSBC Gold ETF Fund of Fund, investors can invest a minimum of Rs 5,000 and in multiples of Re 1 thereof. The investment objective of HSBC Gold ETF is to seek returns that, before expense, track the performance of domestic prices of gold subject to tracking errors, while the investment objective of HSBC Gold ETF Fund of Fund will be to seek to provide returns that are in line with returns provided by HSBC Gold ETF.
While HSBC Gold ETF will be traded on NSE and BSE, HSBC Gold ETF Fund of Fund can be invested in directly with the AMC via Lumpsum, SIP, SIP Top-up, STP and SWP Options.
HSBC Gold ETF will invest at least 95% of its total assets in gold or gold related instruments and may hold up to 5% of its total assets in money market securities.*
HSBC Gold ETF FOF shall invest minimum 95% in units of HSBC Gold ETF and may hold up to 5% of their total assets in debt or money market securities / Funds. The Scheme will remain invested in the underlying scheme regardless of the prevailing gold price or future outlook for this asset class.
Commenting on the launch, Kailash Kulkarni, CEO, HSBC Mutual Fund, said, “Gold, which has long held a place of importance in the Indian household is increasingly being recognized as an asset allocation pillar, offering investors to diversify their portfolio. Its unique ability to act as a hedge against market volatility makes gold essential for long-term wealth preservation and growth. With our Gold ETFs, investors can now enjoy diversification in gold without the complexities of physical storage or handling. This approach empowers investors to build more resilient portfolios and pursue their financial objectives with confidence.”
Venugopal Manghat, CIO, Equity, HSBC Mutual Fund, said, “Gold’s track record of low correlation with equities, makes it a valuable diversifier and an effective hedge during heightened volatility. By maintaining a disciplined allocation to gold, investors could manage overall portfolio risk and long-term stability. With the HSBC Gold ETF and the Gold ETF FoF, we offer investors efficient and flexible means to get exposure to domestic gold price movements, supporting their broader diversification and risk management objectives.”
Why invest in Gold ETF:
- Hedge against volatility: Gold could act as a hedge against volatility considering its low correlation with other asset classes.
- Performance optimisation: The right asset class mix could help achieve favourable results over a long-term period.