Upcoming NFO: The Wealth Company Mutual Fund Filed Draft for Gold Silver Passive FOF

The Wealth Company Mutual Fund is set to launch the Gold Silver Passive Fund of Fund, an open-ended domestic FoF scheme.  

According to the scheme information document, the fund will invest only in The Wealth Company Gold ETF and The Wealth Company Silver ETF, providing exposure to gold and silver through underlying exchange-traded funds. 

Investment Objective 

The stated objective of the scheme is long-term capital appreciation. This is to be achieved by investing in units of the two underlying ETFs.  

The document notes that there is no assurance that the investment objective will be met, and returns will depend on the movement of domestic gold and silver prices. 

Asset Allocation and Strategy 

At least 95% of the scheme’s total assets will be invested in the Gold ETF and Silver ETF. The remaining portion, capped at 5%, may be held in debt securities or money market instruments to manage liquidity.  

The scheme follows a passive investment approach and does not permit derivatives, short selling, securities lending, or overseas investments. 

Benchmark and Risk Reference 

The scheme will be benchmarked against the Domestic Price of Gold and Silver Total Return Index (TRI).  

The benchmark shows the domestic prices of physical gold and silver. As a commodity-linked fund of fund, the net asset value is expected to track price movements in the underlying metals, subject to expenses. 

NFO Details 

Units will be offered at a face value of ₹10 during the New Fund Offer (NFO). The minimum initial investment amount during the NFO is ₹5,000, with additional investments allowed in multiples of ₹1.  

The NFO will remain open for a minimum of 3 working days and not more than 15 days. Specific opening and closing dates are yet to be announced. 

Plans, Options and Costs 

The scheme will be available under Direct and Regular plans, both offering Growth and Income Distribution cum Capital Withdrawal (IDCW) options.  

There is no entry load or exit load. The total expense ratio of the scheme, including the cost of the underlying ETFs, will be capped at 1% of daily net assets, as per regulatory limits. 

Liquidity and Transactions 

The fund will reopen for subscriptions and redemptions within 5 business days from the date of allotment. Redemption proceeds are expected to be dispatched within one to three working days under normal circumstances.  

Units are not proposed to be listed on stock exchanges at the time of launch. 

Read More:  JioBlackRock Mutual Fund to Introduce 3 New Schemes in January 2026! 

Conclusion 

The Gold Silver Passive FOF is structured as a domestic fund of fund with defined exposure to gold and silver ETFs, standard liquidity features, and capped expenses, as outlined in the scheme document 

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.