HSBC Mutual Fund has announced the launch of its first Exchange Traded Fund (ETF) offerings in India with the introduction of HSBC Gold ETF and HSBC Gold ETF Fund of Fund (FoF). The launch marks the asset management company’s maiden ETF products in the Indian market and aims to provide investors with an efficient way to gain exposure to gold as an asset class.
The New Fund Offer (NFO) for the two schemes will open for subscription this week. The HSBC Gold ETF NFO will be available from 16 March to 18 March 2026, while the HSBC Gold ETF Fund of Fund NFO will open from 19 March to 25 March 2026.
Both funds will be managed by Dipan Parikh. The HSBC Gold ETF will primarily invest in physical gold or gold-related instruments and its performance will be benchmarked against the domestic price of gold. Meanwhile, the HSBC Gold ETF Fund of Fund will invest in the units of the HSBC Gold ETF, providing an additional route for investors to participate in gold-linked investments.
During the NFO period, investors can start investing with a minimum amount of Rs 5,000, and in multiples of Re 1 thereafter. The investment objective of the HSBC Gold ETF is to generate returns that, before expenses, track the performance of domestic gold prices, subject to tracking errors. The HSBC Gold ETF Fund of Fund aims to deliver returns that are broadly aligned with the performance of the HSBC Gold ETF.
The HSBC Gold ETF will be listed and traded on the National Stock Exchange of India and the BSE, allowing investors to buy and sell units through the stock exchanges. On the other hand, the HSBC Gold ETF Fund of Fund can be invested in directly through the asset management company via options such as lumpsum investments, Systematic Investment Plans (SIP), SIP Top-up, Systematic Transfer Plans (STP), and Systematic Withdrawal Plans (SWP).
In terms of portfolio allocation, the HSBC Gold ETF will invest at least 95 percent of its total assets in gold or gold-related instruments, while up to 5 percent may be invested in money market securities. Similarly, the HSBC Gold ETF Fund of Fund will invest a minimum of 95 percent in units of HSBC Gold ETF, with the remaining up to 5 percent allocated to debt or money market securities or funds.
Commenting on the launch, Kailash Kulkarni, Chief Executive Officer of HSBC Mutual Fund, said that gold has long been an important asset for Indian households and is increasingly being recognised as a key component of portfolio diversification. He noted that gold’s ability to act as a hedge against market volatility makes it an essential tool for long-term wealth preservation and growth. According to him, the introduction of these gold ETFs allows investors to gain exposure to gold without the challenges associated with storing or handling physical gold.
Venugopal Manghat, Chief Investment Officer – Equity at HSBC Mutual Fund, highlighted that gold historically shows a low correlation with equities, making it an effective diversifier in times of market uncertainty. He added that maintaining a disciplined allocation to gold can help investors manage overall portfolio risk and achieve long-term stability.
The launch of the HSBC Gold ETF and HSBC Gold ETF Fund of Fund aims to offer investors efficient and flexible ways to benefit from domestic gold price movements while strengthening portfolio diversification strategies.
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