HSBC Mutual Fund Launches First Gold ETF and FoF Offerings in India

HSBC Mutual Fund has introduced its first exchange‑traded fund offerings in the Indian market with the launch of the HSBC Gold ETF and the HSBC Gold ETF Fund of Fund. The new schemes aim to provide investors exposure to gold through market‑linked instruments, marking a strategic expansion of the fund house’s product suite.

The NFO for the HSBC Gold ETF will run from March 16 to March 18, while the HSBC Gold ETF Fund of Fund will remain open from March 19 to March 25. HSBC stated that these launches represent its initial entry into the ETF segment in India.

Structure And Investment Objective of HSBC Gold ETF

The HSBC Gold ETF will primarily invest in physical gold or gold‑related instruments.

• Minimum 95% allocation to gold or gold‑related instruments
• Up to 5% allocation to money market securities
• Listed on NSE and BSE
• Designed to track domestic gold price movements

Features And Strategy of HSBC Gold ETF Fund of Fund

The HSBC Gold ETF Fund of Fund will invest mainly in units of the HSBC Gold ETF, offering an alternative route for gold exposure without requiring a demat account. The FoF structure allows investment through lump sum, SIP, SIP top‑up, STP and SWP options directly with the fund house.

This makes the scheme accessible to a broader base of investors who may prefer traditional fund investment channels. Like the ETF, the FoF aims to mirror the performance of domestic gold prices through its underlying holdings.

NFO Details and Investment Requirements

During the NFO period, the minimum investment for both schemes is set at ₹5,000, with subsequent investments allowed in multiples of ₹1. The simultaneous rollout of the ETF and the FoF provides two distinct access points for investors seeking gold‑linked exposure.

Both schemes will be managed by Dipan Parikh, who will oversee portfolio decisions and the alignment of the funds’ performance with their respective objectives. The AMC noted that the allocation structure is designed to ensure high alignment with underlying gold price movements.

Read More: SBI Mutual Fund Plans ₹13,000 Crore IPO.

Conclusion

HSBC Mutual Fund’s debut in the ETF space through the HSBC Gold ETF and the HSBC Gold ETF Fund of Fund marks a significant expansion of its product offerings in India. The NFO windows run from March 16 to March 25 across the two schemes, with both focusing on delivering market‑linked gold exposure.

The ETF will invest directly in physical gold or related instruments, while the FoF will channel investments into the ETF itself. With Dipan Parikh managing both schemes, the fund house aims to provide structured, gold‑aligned investment options supported by clear asset allocation strategies.

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