NFO Alert: Bandhan Mutual Fund Launches Gold and Silver ETF FoFs

Bandhan Mutual Fund has announced two new Fund of Fund (FoF) schemes focused on commodities, Bandhan Gold ETF FoF and Bandhan Silver ETF FoF.  

Both schemes will open for subscription on January 12, 2026, and close on January 20, 2026, according to the scheme information documents. The schemes are open-ended and fall under domestic FoF categories. 

Nature of the Schemes 

The Gold ETF FoF will invest in units of domestic gold exchange-traded funds that track the price of physical gold in India. The Silver ETF FoF will invest in units of silver ETFs linked to domestic physical silver prices. Neither scheme will invest directly in physical gold or silver. 

Asset Allocation Details 

As per the offer documents, both schemes will invest 95% to 100% of their assets in the respective gold or silver ETFs. Up to 5% of assets may be held in debt securities or money market instruments for liquidity purposes.  

The schemes will not invest in derivatives, foreign securities, securitised debt, REITs, InvITs, or structured obligations. 

Subscription and Investment Limits 

The minimum investment amount during the new fund offer is ₹1,000, with additional investments allowed in multiples of ₹1000/ and in multiples of ₹1 thereafter.  

Both schemes are available under Regular and Direct plans and offer only the Growth option. Systematic investment options such as SIP, STP, or SWP are not available under these schemes. 

Exit Load and Expenses 

An exit load of 0.25% will be charged if units are redeemed on or before 15 days from the date of allotment. No exit load will apply after this period.  

The total expense ratio for each scheme will be capped at 1% of daily net assets, in line with regulatory limits. Investors will also bear the expenses charged by the underlying ETFs. 

Benchmark and Risk Classification 

The Gold ETF FoF will be benchmarked against the Domestic Price of Physical Gold, while the Silver ETF FoF will track the Domestic Price of Physical Silver. Both schemes are classified as high risk under the riskometer framework outlined in the scheme documents. 

Fund Management 

Both schemes will be managed by Abhishek Jain, who has 13 years of experience in the asset management industry, as stated in the offer documents. 

Read More: NFO Alert: Bandhan Mutual Fund Launches Arudha Hybrid Long Short Fund! 

Conclusion 

With these launches, Bandhan Mutual Fund has added gold and silver ETF-based FoFs to its product lineup, providing access to domestic precious metal ETFs through a mutual fund structure. 

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.