Upcoming NFO: Axis Mutual Fund Files Draft for Gold & Silver Passive FoF

Axis Mutual Fund has submitted a draft document for a new scheme called the Axis Gold and Silver Passive Fund of Fund. The scheme is structured to invest only in gold and silver Exchange Traded Funds (ETFs).  

Units during the New Fund Offer(NFO) will be priced at ₹10 each. After the NFO period, the fund will open for regular subscriptions and redemptions like any open-ended scheme.  

Allocation Breakdown 

The filing shows that the scheme will put 95%-100% of its money into gold and silver ETFs, and each metal will always hold at least 35% of the portfolio, but not more than 65%.  

A small portion, up to 5%, can be kept in money market instruments for liquidity. The scheme will not deal in derivatives, overseas assets, structured debt, credit-enhanced bonds, or short selling. The entire exposure will stay within domestic ETF units.  

Benchmark and Structure 

The benchmark listed is a 50:50 combination of domestic gold prices and domestic silver prices. The scheme will be available in two plans, Regular and Direct, but only with a Growth option, meaning there will be no dividend payouts. Any earnings generated will stay invested and reflect in the NAV.  

Investment Amount and Exit Rules 

The minimum investment size during the NFO and afterwards is ₹100, with additional investments also starting from ₹100. There is an exit load of 0.25% if units are redeemed or switched out within 15 days of allotment. After 15 days, there will be no exit charge.  

Fund Management 

As per the filings, Pratik Tibrewal has experience handling commodities and debt, and Aditya Pagaria is associated with fixed-income strategies. Both are listed to manage this FoF from the beginning of its launch.  

Read More: DSP Mutual Fund Launches Four New Midcap and Small-Cap Passive Schemes! 

Conclusion 

With this filing, Axis Mutual Fund has proposed a fund-of-fund that mixes gold and silver exposure using existing domestic ETFs. As the scheme is still in draft stage, it has no performance track record and will move forward after regulatory review.  

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.