HSBC Mutual Fund has launched its first exchange-traded funds (ETFs) in India, marking its entry into the country’s rapidly expanding passive investment segment with gold-focused schemes. The asset manager introduced the HSBC Gold ETF and the HSBC Gold ETF Fund of Fund (FoF), offering investors exposure to gold through market-linked instruments rather than physical bullion.
Key Highlights
- HSBC Mutual Fund launches its first gold-focused ETFs in India, entering the fast-growing passive investment market.
- New funds aim to track domestic gold prices, offering investors a transparent alternative to physical gold.
The New Fund Offer (NFO) for the HSBC Gold ETF opens on March 16 and closes on March 18, 2026, with units offered at ₹10 per unit and no entry or exit load. The scheme is expected to reopen for continuous sale and repurchase and be listed around March 27, 2026.
The HSBC Gold ETF Fund of Fund will be available for subscription from March 19 to March 25, 2026. The FoF will primarily invest in units of the HSBC Gold ETF, allowing investors without demat accounts to access gold investments through a traditional mutual fund structure.
The ETF aims to track the domestic price of gold, providing returns that correspond closely to the performance of physical gold, subject to tracking error. The fund will invest predominantly in gold and gold-related instruments, enabling investors to gain exposure to the commodity in a regulated financial format.
Also Read: HSBC and EY India Unveil GIFT City Market Maturity Report
Meanwhile, the Fund of Fund will allocate at least 95% of its assets in units of the HSBC Gold ETF, while the remaining portion may be invested in money market or debt instruments for liquidity purposes.
The launch comes at a time when gold-backed financial products have seen increased attention among Indian investors seeking diversification and protection against macroeconomic volatility.
Data from the Association of Mutual Funds in India (AMFI) shows that gold ETFs continue to draw significant investor interest. Despite a sharp month-on-month drop in inflows to ₹5,254 crore in February 2026 from ₹24,039 crore in January, inflows remain substantially higher than the ₹1,979 crore recorded in February 2025, reflecting sustained demand for gold investment products.
