Choice Mutual Fund Filed Draft for Gold ETF With SEBI

Choice Mutual Fund has submitted draft documents to the Securities and Exchange Board of India (SEBI) for the launch of Choice Gold ETF. The scheme information document is dated September 1, 2025, and has been prepared under SEBI’s mutual fund regulations.

Scheme Structure

The Choice Gold ETF will be an open-ended exchange-traded fund to replicate or track the domestic price of gold. The face value of each unit is set at ₹10. Units will be listed on both the NSE and BSE once approvals and procedures are completed.

Investment Objective and Allocation

The fund aims to provide returns that align with the domestic price of gold, before expenses and tracking errors. The allocation policy states that between 95% and 100% of assets will be in physical gold and gold-related instruments. The balance of up to 5% may be held in cash equivalents, treasury bills, or money market instruments.

Liquidity and Trading

Units of the ETF can be traded on the stock exchanges like any other security. The AMC will appoint at least two market makers to provide 2-way quotes and ensure liquidity during market hours. Large investors may subscribe or redeem directly with the fund in creation unit sizes. Redemption directly with the AMC is also allowed in specified situations, such as prolonged price deviations from NAV.

Benchmark and NAV Details

The scheme will benchmark its performance against the domestic price of gold. The first NAV will be declared within five business days from allotment, and thereafter, NAVs will be calculated and published every business day. Tracking error will be monitored and targeted not to exceed 2% annually.

NFO Details

The minimum application amount during the New Fund Offer(NFO) will be ₹1,000. No entry or exit load applies. The fund will be managed by Rochan Pattnayak, who has over 15 years of experience in the financial services sector.

Read More: ICICI Prudential Mutual Fund is the Second Mutual Fund to Cross ₹10 Trillion AUM!

Conclusion

The filing marks Choice Mutual Fund’s move to introduce a gold-based ETF, offering investors access to gold returns through an exchange-traded format once approvals are in place.

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.