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Mumbai — In a move aimed at making gold investment more accessible and affordable to everyday investors, Baroda BNP Paribas Mutual Fund has announced the launch of its Gold ETF Fund of Fund (FoF). The New Fund Offer (NFO) is currently open for subscription and will close on August 14, 2025.
The newly launched scheme is designed to provide retail investors an easy and cost-effective route to invest in gold, without the challenges of physical ownership. It achieves this by investing primarily in units of the Baroda BNP Paribas Gold ETF, which is backed by physical gold, thereby combining the benefits of digital access and real asset backing.
Affordable Entry to a High-Value Asset
The timing of the fund’s launch is significant. Gold prices are approaching the ₹1 lakh per 10 grams mark, a psychologically significant threshold that has made direct gold investment increasingly out of reach for many retail investors. Through this fund, investors can gain exposure to gold with as little as ₹1,000 in a lump sum or start a Systematic Investment Plan (SIP) with just ₹500 per month, making it one of the most accessible gold investment options in the market today.
The exit load is also designed to encourage long-term investing. A 1% exit load applies if redeemed within 15 days of allotment, but there is no exit load thereafter, adding to the scheme’s flexibility.
Why Invest in a Gold Fund of Fund?
The Gold ETF Fund of Fund structure offers several distinct advantages:
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Diversification: Gold typically exhibits a low correlation with equity markets, offering a natural hedge against market volatility.
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Liquidity: Unlike physical gold, FoFs can be bought and sold with ease through the mutual fund route.
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No Storage Hassles: Investors are spared from the costs and risks associated with storing physical gold.
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Transparency: NAV-based investments ensure fair pricing, reflecting the current value of gold.
The fund is ideally suited for investors who want to diversify their portfolios with a long-term allocation to gold but may not be comfortable navigating the complexities of ETF platforms or holding physical bullion.
Experienced Management at the Helm
The scheme will be jointly managed by Gurvinder Singh Wasan, Madhav Vyas, and Swapna Shelar, three seasoned professionals with deep experience in managing passive and hybrid investment strategies. Their focus will be on mirroring the performance of gold prices via the underlying Gold ETF, ensuring minimal tracking error and operational efficiency.
CIO Speaks: Bridging the Gold Investment Gap
Prashant Pimple, Chief Investment Officer – Fixed Income at Baroda BNP Paribas Mutual Fund, emphasized the product’s relevance in the current economic environment.
“Indian households hold around 25,000 tonnes of gold, which is more than the combined reserves of the top 10 central banks globally,” he noted, citing recent data from the World Gold Council (WGC, July 2025).
“However, with prices rising sharply, gold has become harder to access directly. Through this fund, we aim to bring affordability, flexibility, and convenience back to gold investing.”
He further added that over the past 10 to 25 years, gold has offered returns comparable to, and in some cases better than, equities, particularly during economic slowdowns, inflationary cycles, or geopolitical uncertainty.
Gold as a Strategic Asset Class
Industry experts widely recognize gold as a strategic component in any well-diversified portfolio. In uncertain economic conditions, it has often served as a store of value, preserving purchasing power when fiat currencies or equities underperform.
With central banks around the world maintaining high levels of gold reserves, and retail demand showing resilience despite rising prices, gold continues to be viewed as a safe-haven asset. This fund comes at an opportune time to offer retail investors a structured and regulated way to participate in the commodity’s upside.
About Baroda BNP Paribas Mutual Fund
Baroda BNP Paribas Mutual Fund is managed by Baroda BNP Paribas Asset Management India Pvt. Ltd., a joint venture between Bank of Baroda, one of India’s largest public sector banks, and BNP Paribas Asset Management, a globally renowned investment firm and part of the BNP Paribas Group.
With a presence across equity, debt, hybrid, and overseas fund of funds, the AMC currently manages 46 schemes, catering to a diverse investor base. The Gold ETF Fund of Fund further adds to its product suite, enhancing options for retail investors looking for tactical and strategic asset allocation.
Conclusion
In a landscape where gold continues to shine both as a long-term investment and a short-term hedge, the Baroda BNP Paribas Gold ETF Fund of Fund emerges as a timely and well-structured offering. It opens the doors for retail investors to enter the gold market without the barriers of high prices, lack of liquidity, or storage risk—ushering in a more inclusive era of wealth-building through gold.
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