Mirae Asset MF launches Gold ETF Fund of Fund: Should you invest in yellow metal via this route? #NewsETFs

Mirae Asset Investment Managers (India) has announced the launch of the Mirae Asset Gold ETF Fund of Fund, an open-ended fund of fund scheme that invests in units of the Mirae Asset Gold ETF. This scheme aims to achieve long-term capital appreciation through its investments in the underlying ETF.

However, there is no assurance that the investment objective will be fully realised, the mutual fund house said.

The New Fund Offer (NFO) for the Mirae Asset Gold ETF Fund of Fund will be open for subscription from October 16 to October 22, 2024, with the scheme reopening for continuous sale and repurchase on October 28, 2024.

The fund will be managed by Ritesh Patel and Akshay Udeshi (co-fund manager).

Investors can make a minimum initial investment of ₹5,000 during the NFO, with subsequent investments allowed in multiples of ₹1.

The Mirae Asset Gold ETF Fund of Fund provides an avenue for investors seeking exposure to domestic gold prices through investments in the Mirae Asset Gold ETF.

The underlying ETF is backed by physical gold that is certified by the London Bullion Market Association (LBMA), ensuring a purity of 99.5% or higher.

This approach offers advantages such as lower costs, no storage hassles, and reduced purity risks compared to owning physical gold directly.

Gold is often considered a safe-haven asset, providing diversification benefits due to its lower correlation with other asset classes. It typically performs well during periods of heightened geopolitical tensions, market risk, and inflation.

By investing in the Mirae Asset Gold ETF Fund of Fund, investors can enhance their portfolio’s resilience during times of economic uncertainty, the mutual fund house said.

Speaking on the NFO launch, Siddharth Srivastava, Head of ETF Product and Fund Manager at Mirae Asset Investment Managers (India), said, “The Mirae Asset Gold ETF Fund of Fund offers an effective way for investors to diversify their portfolios and gain exposure to gold. With gold’s historical role in preserving value during inflationary periods and economic downturns, this fund aims to provide an opportunity for investors to strengthen their portfolios and navigate challenging times.”