Amid rising demand for gold investment options in India, HSBC Mutual Fund has entered the exchange-traded fund (ETF) segment.
The company has launched two new gold-based schemes—HSBC Gold ETF and HSBC Gold ETF Fund of Fund. These are its first ETF products in India.
These funds aim to help investors protect their money from market volatility and diversify their investment portfolios.
The New Fund Offer (NFO) for the HSBC Gold ETF is open from March 16 to March 18, 2026. The NFO for the HSBC Gold ETF Fund of Fund will be available from March 19 to March 25, 2026.
How These Funds Will Work
The HSBC Gold ETF will mainly invest in physical gold and gold-related instruments. Its performance will depend on domestic gold prices.
At least 95% of the fund’s assets will be invested in gold or similar instruments, while up to 5% can be invested in money market securities.
The HSBC Gold ETF Fund of Fund will invest a minimum of 95% of its assets in units of the HSBC Gold ETF. The remaining amount can be invested in debt or money market instruments. Both schemes will be managed by Dipan Parikh.
Investment Details and Minimum Amount
The HSBC Gold ETF will be listed on major stock exchanges like National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), where it can be traded like shares.
The Fund of Fund (FoF) version will be available directly through the asset management company.
Investors can choose from multiple investment options such as lump sum, SIP, SIP top-up, STP, and SWP.
During the NFO period, the minimum investment amount is ₹5,000. After that, additional investments can be made in multiples of ₹1.
Gold’s Role in Investment Portfolios
Kailash Kulkarni said that gold has always been important in Indian households and is now becoming a key part of asset allocation in investment portfolios. It helps investors diversify their investments.
He also mentioned that gold is often seen as a safe option during market uncertainty, helping to protect and grow wealth over time. Gold ETFs make it easier to invest in gold without the need to buy or store physical gold.
Why Gold Helps Balance Your Portfolio
Venugopal Mangat explained that gold usually has a low connection with stock market movements. Because of this, it is useful for reducing risk and adding balance to a portfolio during volatile market conditions.
He added that keeping a reasonable portion of gold in a portfolio can improve long-term stability and risk management. These new funds offer a simple
and flexible way for investors to benefit from changes in gold prices and strengthen their overall investment strategy.
