04-08-2025
NFO Alert: Baroda BNP Paribas Mutual Fund launches Gold ETF Fund of Fund
Synopsis
The Baroda BNP Paribas Gold ETF Fund of Fund (FoF) offers high liquidity and aims to offer investors a smart, low-volatility way to gain gold exposure with long-term growth potential. A 1% exit load applies on redemptions or switches within 15 days, after which no exit load is charged, enhancing its flexibility.
The fund will be managed by Gurvinder Singh Wasan, Madhav Vyas and Swapna Shelar. Baroda BNP Paribas Asset Management India has announced the launch of a new fund of fund scheme, the Baroda BNP Paribas Gold ETF Fund of Fund (FoF), which offers long-term investors seeking investment in gold-related assets a simple, low-cost and viable investment option.
The new fund offer, or NFO, is open for subscription and will close on August 14.
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The fund offers high liquidity and is designed for investors seeking smart, low-volatility exposure to gold with potential for long-term capital appreciation. An exit load of 1% applies if units are redeemed or switched out within 15 days from the date of allotment. No exit load is payable on redemptions or switches made after 15 days, making it a flexible and convenient investment option for gold enthusiasts, according to the press release.'Indian households are one of the world's largest holders of gold. Their holdings of around 25,000 tonnes of this precious metal are more than the combined holdings of the top 10 reserve banks of the world*. However, the spectacular rise in the price of gold has made savings in gold inaccessible to a large percentage of the Indian populace,' said Prashant Pimple, CIO – Fixed Income, Baroda BNP Paribas MF.
'With its low cost of holding, ease of transaction and low minimum investment amount, we have tried to make gold once again accessible to retail investors via our Baroda BNP Paribas Gold ETF Fund of Fund,' he fund will be managed by Gurvinder Singh Wasan, Madhav Vyas and Swapna Shelar. Baroda BNP Paribas Gold ETF Fund of Fund enables investors to access the precious metal in a convenient and secure manner, without the challenges of physical storage. Also Read | SIP is always going to be better than an EMI : Deepak Shenoy of Capitalmind Mutual Fund saysWith lump sum investments starting at just Rs 1,000 (and in multiples of Re 1 thereafter) and monthly Systematic Investment Plans (SIPs) starting from just Rs 500, the scheme aims to bring gold investing within reach of every gold prices nearing Rs 1 lakh per 10 grams, affordability has become a major hurdle for many investors. The fund seeks to offer a timely solution by allowing gold exposure through mutual fund units. It also benefits from the rising demand among central banks globally, who have turned to adding to their existing gold reserves, amid geopolitical uncertainty, the release said.'If one looks at the last 10–25* years, then historically gold returns over the period have been almost as good as equity, or even better in some instances. This, along with its negative correlation with equity, reinforces its position as a potential stabiliser to the overall volatility of an investor's portfolio,' said Gurvinder Wasan, Senior Fund Manager, AMC.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
