The new fund offer (NFO) for HSBC Gold ETF will remain open from March 16 to March 18, while the NFO for HSBC Gold ETF Fund of Fund will be available for subscription from March 19 to March 25.
According to the asset management company, the launch marks its first ETF offerings in the Indian market.
HSBC Gold ETF will invest primarily in physical gold or gold-related instruments and aims to track the performance of domestic gold prices, subject to tracking error. The ETF will be listed and traded on the National Stock Exchange of India and the BSE Ltd..
The HSBC Gold ETF Fund of Fund will invest mainly in units of the HSBC Gold ETF. Investors can invest in the FoF directly with the fund house through options such as lump sum, systematic investment plan (SIP), SIP top-up, systematic transfer plan (STP) and systematic withdrawal plan (SWP).
Both schemes will be managed by Dipan Parikh.
During the NFO period, the minimum investment amount for both schemes is ₹5,000 and in multiples of ₹1 thereafter.
Under the asset allocation strategy, the HSBC Gold ETF will invest at least 95% of its assets in gold or gold-related instruments and may allocate up to 5% to money market securities. The Gold ETF Fund of Fund will invest a minimum of 95% of its assets in units of the HSBC Gold ETF and may hold up to 5% in debt or money market instruments.
The FoF will remain invested in the underlying ETF irrespective of prevailing gold prices or outlook for the asset class, according to the scheme details.
