Upcoming NFO: HDFC Mutual Fund Files Draft for Gold Silver Passive FOF

HDFC Mutual Fund has filed draft papers for the HDFC Gold Silver Passive Fund of Fund, an open-ended scheme that will invest in units of gold and silver exchange traded funds (ETFs).  

The structure is that of a commodity-based fund of fund, meaning it will not hold physical metals directly but gain exposure through underlying ETFs. The scheme does not have any past performance record as it is a new offering.  

Investment Allocation 

The draft document shows that 95-100% of the portfolio will be invested in HDFC Gold ETF and HDFC Silver ETF. The remaining 0-5% may be placed in debt securities or money market instruments for liquidity.  

The fund may adjust allocation between gold and silver depending on market conditions, while staying within the stated limits. The scheme will not invest in derivatives, foreign securities, or structured debt products.  

Pricing and Transactions 

Units will be offered at ₹10 during the New Fund Offer (NFO). The minimum investment amount is ₹100, with no upper limit specified.  

The scheme will reopen for subscriptions and redemptions within 5 business days from allotment. Redemption requests are to be processed within 3 working days.  

An exit load of 1% will apply if units are redeemed within 15 days, while no charge is applicable after this period.  

Benchmark and Costs 

The benchmark will be based on domestic prices of physical gold and silver, showing the underlying exposure of the scheme.  

The total expense ratio is capped at 1% of daily net assets, including the cost of underlying ETFs. Investors will bear expenses at both the scheme level and the ETF level.  

Operational Details 

The first NAV will be disclosed within 5 business days from allotment, and thereafter updated on the next business day.  

Subscriptions can be made through multiple channels including online platforms, stock exchange routes, and authorised centres. Systematic investment options such as SIP are also available.  

Read More: Upcoming NFO: Motilal Oswal Mutual Fund Files Draft for BSE Clean Environment Index Fund! 

Conclusion 

The proposed fund combines exposure to gold and silver ETFs within a single structure, with defined allocation limits and standard mutual fund features, subject to commodity price movements. 

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.