NFOs open on August 20; aim to provide wider access to gold as an investment asset
#AngelOne #GoldETF #GoldFOF #MutualFunds #PortfolioDiversification #SafeHavenAsset #InvestInGold
Mumbai: Angel One Asset Management Company, a wholly owned subsidiary of Angel One Limited, has announced the launch of two new investment offerings – the Angel One Gold ETF and the Angel One Gold ETF Fund of Fund (FOF). The New Fund Offers (NFOs) for both products will open for subscription on August 20, 2025.
The Gold ETF will close on September 2, while the Gold ETF FOF will close on September 3. Both funds are designed to track the domestic price of gold, making the yellow metal more accessible to retail and institutional investors alike.
Investor-friendly options
The Angel One Gold ETF offers investors an entry point with a minimum application amount of ₹1,000 during the NFO. After listing, it will be traded on the National Stock Exchange (NSE), ensuring liquidity and price transparency.
The Angel One Gold ETF Fund of Fund (FOF) has been designed with inclusivity in mind, as it does not require a demat account. Systematic Investment Plans (SIPs) can be started with contributions as low as ₹250 per day, ₹500 weekly, fortnightly, or monthly, and ₹1,500 quarterly. Importantly, the FOF carries no exit load, giving investors greater flexibility.
Both products will invest in 99.5% pure gold, providing exposure to one of the most reliable and historically resilient asset classes.
Riding on rising investor interest in gold
The launch of these two funds comes at a time when investor appetite for gold ETFs has been surging in India. According to data released by the Association of Mutual Funds in India (AMFI), assets under management (AUM) in gold ETFs stood at ₹67,634 crore in July 2025, almost double the ₹34,455 crore recorded in July 2024.
This sharp rise underscores gold’s enduring appeal as both a safe-haven investment during market volatility and a hedge against inflation. With central banks across the world steadily increasing their gold reserves, gold continues to play a critical role in global financial stability.
Management commentary
Commenting on the twin launches, Hemen Bhatia, Executive Director & CEO, Angel One AMC, said:
“Gold has consistently proven its role as a store of value and a hedge in volatile markets. With central banks steadily increasing their gold reserves and with gold’s historical resilience against inflation, these offerings provide investors with an effective tool for portfolio diversification.”
Bhatia further highlighted that the launch was part of Angel One AMC’s strategy to diversify its product portfolio and expand its reach among first-time mutual fund investors. By offering both an ETF (for investors with demat accounts and preference for stock market-linked trading) and a FOF (for those who prefer SIPs and easier access), Angel One aims to cater to a broad spectrum of investor needs.
Key features of the new schemes
Angel One Gold ETF
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Minimum investment: ₹1,000 during NFO
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Underlying asset: Investments in 99.5% pure gold
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Liquidity: To be listed on NSE, enabling live trading like stocks
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Transparency: Market-determined price discovery
Angel One Gold ETF FOF
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Minimum SIPs: ₹250 per day, ₹500 for weekly/fortnightly/monthly, ₹1,500 quarterly
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Demat account: Not required, unlike ETFs
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Flexibility: No exit load, allowing investors to redeem without penalty
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Target audience: Retail investors seeking long-term exposure to gold without market-trading hassles
Why gold ETFs now?
Investment experts note that gold is increasingly being recognized as a core component of diversified portfolios. Rising global uncertainties, persistent inflation, and fluctuating equity and bond markets have driven investors toward safer alternatives like gold.
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Inflation hedge: Gold has historically preserved value during periods of high inflation.
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Crisis protection: During global conflicts or financial downturns, gold demand tends to rise.
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Diversification: Gold’s low correlation with equities and fixed income makes it an ideal balancing asset.
Given the volatility in global markets in recent years, analysts suggest that systematic investment in gold ETFs could prove a prudent move for investors aiming at wealth preservation and long-term stability.
Expanding the mutual fund landscape
With the introduction of the Angel One Gold ETF and FOF, Angel One AMC joins other large asset management companies in expanding their offerings in the commodity space. The move not only reflects rising demand but also indicates a shift in the mutual fund industry toward innovative, investor-friendly products that combine affordability with accessibility.
Financial advisors believe that first-time investors could particularly benefit from the FOF option, as it requires no demat account and offers low-cost SIPs. Meanwhile, experienced investors can trade the ETF like a stock, potentially benefiting from price movements in real time.
Conclusion
With gold continuing to shine as a safe-haven investment and investor demand nearly doubling in just one year, Angel One AMC’s Gold ETF and Gold ETF FOF appear well-timed. By offering both a stock exchange-listed ETF and a demat-free FOF with SIP options, Angel One AMC is targeting a wide investor base, from seasoned traders to first-time mutual fund participants.
As the subscription window opens on August 20, 2025, these funds are expected to draw strong investor interest, further solidifying gold’s place as an essential component in Indian portfolios.
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#AngelOne #GoldETF #GoldFOF #MutualFunds #PortfolioDiversification #SafeHavenAsset #InvestInGold
