Bandhan Mutual Fund launches gold and silver ETFs

Bandhan Mutual Fund has announced the launch of two commodity-based exchange-traded funds — the Bandhan Gold ETF and the Bandhan Silver ETF — expanding its product lineup in the passive investment segment. The schemes are open-ended and will track the domestic prices of physical gold and silver.

The New Fund Offers (NFOs) for both ETFs will open on December 1 and close on December 3.

Units will later be listed on stock exchanges, allowing investors to buy and sell them like equity shares. Subscriptions can be made via standard mutual fund platforms.

The fund house noted that gold continues to play a role as a hedge during periods of geopolitical and economic uncertainty, with its relative stability contributing to diversification in investor portfolios. Silver, while recognised as a precious metal, has seen rising demand from industries linked to energy transition, such as solar manufacturing, electric vehicles and advanced electronics, adding a structural dimension to its investment appeal.

Both ETFs aim to provide investors an avenue to access these metals without dealing with physical storage, purity checks or liquidity constraints. The schemes will hold metal in accordance with regulatory guidelines for commodity ETFs, ensuring transparency of underlying assets and daily disclosure of holdings.

Bandhan AMC Limited, founded in 2000, manages mutual funds, alternative investment products and portfolio management services. The asset manager has an on-ground presence in over 100 cities and serves investors across more than 790 locations, managing over 3.5 million folios across institutional, corporate, family office and retail categories.