BSE Scrip Code: 533230

NSE Symbol: HDFCGOLD

An open ended scheme replicating / tracking performance of Gold

Investment Objective: The investment objective of the Scheme is to generate returns that are in line with the performance of gold, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.

What is the HDFC Gold ETF?

The HDFC Gold ETF is an exchange-traded fund that aims to track the performance of gold. It provides investors with a convenient and cost-effective way to invest in gold digitally, eliminating the need for physical storage and ensuring the quality of the underlying gold.

Why invest in HDFC Gold ETF?

• Returns Aligned with Gold Performance: The ETF aims to replicate the price movements of gold, enabling investors to participate in the precious metal's performance.
• Portfolio Diversification and Currency Hedge: Gold has a historical reputation as a safe haven asset that provides diversification benefits and acts as a hedge against currency depreciation.
• Safe Haven during Market Stress and Geopolitical Risks: Gold's status as a safe haven asset can provide stability to investment portfolios during market volatility, economic uncertainties, and geopolitical risks.
• Low Cost and Convenience: The HDFC Gold ETF presents a low-cost and convenient way to invest in gold. Investors can easily buy and sell ETF units on the stock exchange, eliminating the need for physical storage and ensuring gold quality.

Additional Benefits of the HDFC Gold ETF:

• Safety: Unlike physical gold, the ETF eliminates the risk of theft, storage issues, and related expenses like those incurred with lockers.
• Price Transparency: The ETF's prices on exchanges are transparent, similar to shares and other tradable securities.
• Ability to Buy in Small Units: Investors can purchase small units of the HDFC Gold ETF, with each unit approximately equal to 0.01 grams of gold, making it accessible to a wide range of investors.
• No Securities Transaction Tax: The HDFC Gold ETF is not subject to Securities Transaction Tax, reducing the overall cost of investment.

Who should invest in HDFC Gold ETF?

The HDFC Gold ETF is suitable for investors who:

• Want to include gold in their investment portfolio for diversification purposes
• Seek a safe haven asset during market downturns and geopolitical uncertainties
• Prefer a low-cost and digitally accessible investment option for gold exposure

What is the ideal investment time horizon for the HDFC Gold ETF?

The HDFC Gold ETF is for investors with a time horizon of 3 years and above.

How to invest in HDFC Gold ETF?

A. On the Stock Exchange: Investors can buy HDFC Gold ETF units through a stockbroker on the Stock Exchange(s) i.e. NSE/BSE.

B. Directly with the Fund: Market Makers/Large Investors:

On an ongoing basis, Market Makers and Large Investors* may approach the Fund directly for subscription/redemption of units of the ETF at the Intra-Day NAV in multiples of Creation Unit size. *The minimum application amount for Large Investors shall be Rs. 25 Crores and in multiples of Creation Unit Size^.

^ Not Applicable till February 28, 2025 for a) Schemes managed by Employee Provident Fund Organisation, India and b) Recognised Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961.

 

The Scheme may invest in Gold and Gold related instruments (including derivatives, Sovereign Gold Bonds, etc. as and when SEBI/RBI permits) and intends to track the spot price of Gold.

For list of Market Makers, click here