Looking for alternatives to invest in gold? Groww MF floats new ETF

The Groww Gold ETF aims to mirror the local price of physical gold, providing investors with the opportunity to invest in gold bullion with a purity of 99.5%

Groww Mutual Fund has launched an open ended fund that will offer investors a new, cost-efficient and convenient way to invest in gold, it said on Tuesday.

A Gold Exchange-Traded Fund (ETF) is an investment fund traded on stock exchanges and that seeks to mirror the price movement of physical gold in the domestic market.

The Groww Gold ETF aims to replicate the domestic price of physical gold, providing investors a way to invest in bullion with 99.5 per cent purity. This cost-effective investment option removes the hassle of purchasing, storing, or insuring physical gold, while still allowing investors to capitalise on price fluctuations.

Objective of scheme: The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL-IBX AAA NBFC-HFC Index – Dec 2025 before expenses, subject to tracking errors.

Benchmark: The scheme will be benchmarked against the domestic price of physical gold.

Period: The new fund offer (NFO) of the scheme is open for subscription and will close on October 18.

Asset allocation: The scheme will allocate 95-100 per cent in gold (physical and related instruments as permitted by the markets regulator) and 0-5 per cent in debt and money market instruments including units of mutual funds.

Minimum investment: The minimum investment and additional purchase amount is Rs 500 and in multiples of Re 1 thereafter.

Exit load: There is no exit load.

Expense ratio: The maximum total expenses ratio (TER) permissible under regulation 52 (6) (b) is up to 1 per cent.

Fund manager: The fund is managed by Wilfred Gonsalves.