NFO Alert: Bandhan Mutual Launches Gold and Silver ETF

Bandhan Mutual Fund has launched a Gold and Silver Exchange Traded Fund (ETF). The scheme invests in physical gold and silver along with related instruments. The benchmark for the scheme is the domestic price of physical gold and silver, which reflects the performance of the underlying metals. 

As per the news reports, the NFO will open for subscription on October 13 and will close on October 15. The minimum investment amount is ₹1,000.

Plans and Options

The scheme does not offer any specific plans or options at present. The AMC and Trustees may introduce plans or options in the future according to SEBI regulations. Units can be purchased through stock exchanges or directly with the AMC in certain cases.

Minimum Investment

During the New Fund Offers (NFO), the minimum investment amount is ₹1,000, with additional amounts in multiples of ₹1,000. Units are allotted in whole numbers, and any balance amount is refunded. Post-NFO, units can be bought on stock exchanges in multiples of one unit.

Direct Transactions

Market makers and large investors can transact directly with the AMC in Creation Unit Size. The minimum Creation Unit Size is 30,000 units. Units are exchanged for a predefined quantity of physical metals and a cash component. Redemptions are done in the reverse process.

Asset Allocation

The schemes will allocate 95-100% of assets to physical gold, silver, and related instruments. Debt and money market instruments will make up 0-5% of assets. The allocation ensures the ETFs closely track the prices of gold and silver.

The gold and silver portion is managed by Mr Abhishek Jain, with 13 years of experience. The debt portion is managed by Mr Brijesh Shah, who has 15 years of experience.

Read More: Best Performing Nifty 1D Rate Liquid ETFs in October 2025 Based on 6 Month Returns!

Conclusion

SIP, STP, and SWP are not available. Direct redemption from the AMC is allowed only for market makers and large investors; others can redeem via stock exchanges.

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.