Bandhan Mutual Fund Filed Draft for Gold and Silver ETFs

Bandhan Mutual Fund has filed draft scheme documents with the Securities and Exchange Board of India (SEBI) for the launch of 2 new commodity-based exchange-traded funds. The proposed schemes are the Bandhan Gold ETF and the Bandhan Silver ETF, both dated September 16, 2025.

Scheme Objectives

The Bandhan Gold ETF seeks to generate returns that correspond to the domestic price of gold, while the Bandhan Silver ETF will aim to track the domestic price of silver. Returns will be considered before expenses and subject to tracking errors. The fund house has stated there is no guarantee that these objectives will be met

Asset Allocation

The draft documents note that both schemes will invest 95-100% of assets in physical gold or silver and related instruments. Up to 5% may be invested in debt or money market instruments. For gold, the allocation may include Exchange Traded Commodity Derivatives (ETCDs), Gold Monetisation Schemes, and Gold Deposit Schemes. For silver, ETCDs can be used, with exposure capped at 10% of net assets unless physical delivery is intended

Listing and Transactions

Units of both ETFs are proposed to be listed on the National Stock Exchange (NSE) and BSE. Investors will be able to buy and sell units on trading days in lots of one unit or multiples. Large investors, with transactions above ₹25 crore, and market makers can transact directly with the fund in “creation unit” sizes. 

The creation size has been set at 1,00,000 units for gold and 30,000 units for silver.

Read more: NFO Alert: Tata Mutual Fund Launches Nifty Next 50 Index Fund!

Fund Management and Costs

Abhishek Jain will manage the gold and silver portions, while Brijesh Shah will oversee the debt component. Annual recurring expenses for both schemes will be capped at 1% of daily net assets, in line with SEBI rules

Conclusion

If cleared, the two schemes will expand Bandhan Mutual Fund’s product line by adding gold and silver ETFs, offering investors commodity-linked instruments through exchange platforms.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.