HSBC Mutual Fund has announced the launch of two new schemes — HSBC Gold ETF and HSBC Gold ETF Fund of Fund — marking the company’s first exchange traded fund offerings in India.
The New Fund Offer (NFO) for the schemes will open for subscription this week. The NFO period for HSBC Gold ETF will run from March 16 to March 18, 2026, while the NFO for HSBC Gold ETF Fund of Fund will be open from March 19 to March 25, 2026.
Both schemes will be managed by Dipan Parikh, fund manager at HSBC Mutual Fund. The HSBC Gold ETF will primarily invest in physical gold and gold-related instruments, with its performance benchmarked against the domestic price of gold. Meanwhile, the HSBC Gold ETF Fund of Fund will invest in units of the HSBC Gold ETF.
During the NFO period, investors can subscribe to the schemes with a minimum investment of ₹5,000, and in multiples of ₹1 thereafter.
The investment objective of the HSBC Gold ETF is to generate returns that closely track the performance of domestic gold prices, before expenses, subject to tracking errors. The HSBC Gold ETF Fund of Fund aims to deliver returns that are broadly in line with those generated by the underlying HSBC Gold ETF.
The HSBC Gold ETF will be listed and traded on the National Stock Exchange of India and the Bombay Stock Exchange. In contrast, the HSBC Gold ETF Fund of Fund will allow investors to invest directly with the asset management company through options such as lumpsum investment, Systematic Investment Plan (SIP), SIP top-up, Systematic Transfer Plan (STP), and Systematic Withdrawal Plan (SWP).
According to the scheme structure, 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 allocated to money market securities. Similarly, the HSBC Gold ETF Fund of Fund will invest a minimum of 95 percent in units of the HSBC Gold ETF, with up to 5 percent in debt or money market instruments or funds.
Kailash Kulkarni, Chief Executive Officer of HSBC Mutual Fund, said gold has traditionally held an important place in Indian households and is increasingly being viewed as a key portfolio diversification asset. He noted that gold can serve as a hedge against market volatility and help preserve long-term wealth.
Venugopal Manghat, Chief Investment Officer – Equity at HSBC Mutual Fund, added that gold’s historically low correlation with equities makes it an effective portfolio diversifier and a potential hedge during periods of market uncertainty.