NFO Alert: Bandhan Mutual Fund launches precious metals based two ETF Fund of Funds

Bandhan Mutual Fund has announced the launch of Bandhan Gold ETF FoF and Bandhan Silver ETF FoF, two open-ended schemes designed to provide investors with an easy, transparent, and cost-efficient way to participate in gold and silver.

The new fund offers or NFOs of both the funds are open for subscription and will close on January 20.

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“Gold and silver can play a meaningful role in portfolio diversification, but the way investors access these assets matters. Physical metal often brings uncertainties around purity, making charges, storage, and resale, while ETFs require demat accounts that many investors still do not use. The Fund of Fund (FoF) structure removes barriers such as demat requirements, lowers the entry point to Rs 1,000, and enables disciplined investing through SIPs starting at Rs 100,” said Vishal Kapoor, CEO, Bandhan AMC.

“Bandhan Gold ETF FoF and Bandhan Silver ETF FoF combine the assurance and transparency of ETFs with the simplicity of mutual fund investing. Investors can now participate in the resilience of gold and the structural industrial demand for silver through a liquid, transparent format. These offerings are designed to make precious metal investing easier, smarter, and more accessible for a much wider audience,” Kapoor added.

Bandhan Gold ETF FoF and Bandhan Silver ETF FoF are suitable for investors seeking to enhance portfolio resilience, diversify across assets, and participate in the evolving global demand for precious metals through a simple and efficient investment route.

Bandhan Gold ETF FoF

The investment objective of the scheme is to seek capital appreciation by investing in units of Gold ETF.

The performance will be benchmarked against the Domestic Price of Physical Gold and will be managed by Abhishek Jain. For lump sum purchase, the minimum investment amount is Rs 1,000 per application and in multiples of Re 1 thereafter.

The fund will invest 95 to 100% in units of Gold Exchange Traded Funds (ETF) and 0 to 5% in debt securities, money market instruments and units of debt or liquid schemes of domestic mutual funds.

The product is suitable for investors who are seeking long term capital appreciation and want investment in units of Gold ETF which in turn invests in physical gold.

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Bandhan Silver ETF FoF

The investment objective of the scheme is to seek to generate returns by investing in units of Silver ETF.

The performance will be benchmarked against the Domestic Price of Physical Silver. For lump sum purchase, the minimum investment amount is Rs 1,000 per application and in multiples of Re 1 thereafter.

The fund will invest 95 to 100% in units of Silver Exchange Traded Fund (ETF) and 0 to 5% in debt securities, money market instruments and units of debt or liquid schemes of domestic mutual funds.

The product is suitable for investors who are seeking long term capital appreciation and want investment in units of Silver ETF which in turn invests in physical silver.

(Disclaimer: The recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)