Amid rising demand for gold-based investments in India, HSBC Mutual Fund has entered the exchange-traded fund (ETF) segment.
The company has launched two new gold-based schemes to help investors protect their money during market ups and downs and diversify their portfolios.
The two new schemes are:
HSBC Gold ETF
HSBC Gold ETF Fund of Fund
These are the company’s first ETF products in India.
The New Fund Offer (NFO) dates are:
HSBC Gold ETF: March 16 to March 18, 2026
HSBC Gold ETF Fund of Fund: 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 related 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 Options
The HSBC Gold ETF will be listed and traded on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Fund of Fund (FoF) version will be available directly through the company.
Investors can choose from different investment options such as:
Lump sum investment
SIP (Systematic Investment Plan)
SIP top-up
STP (Systematic Transfer Plan)
SWP (Systematic Withdrawal Plan)
During the NFO period, the minimum investment amount is ₹5,000. After that, additional investments can be made in multiples of ₹1.
Gold as an Important Investment Option
According to Kailash Kulkarni, gold has always been important in Indian households. Now, it is also becoming a key part of investment portfolios.
Gold helps investors diversify their investments and is considered a safe option during market volatility. It can help protect and grow wealth over the long term. Gold ETFs also make it easy to invest in gold without buying or storing physical gold.
How Gold Helps Balance Your Portfolio
Venugopal Mangat explained that gold usually does not move in the same way as the stock market. Because of this, it helps reduce overall risk and adds stability to a portfolio during uncertain times.
Keeping a balanced portion of gold in a portfolio can help manage risk and maintain stability over the long term.
He added that these new funds provide a simple and flexible way for investors to benefit from changes in gold prices in the domestic market. This can help them diversify better and manage risk effectively.
