Choice Mutual Fund Gets SEBI Nod for Choice Gold ETF Launch

Mumbai, October 8, 2025 – Choice Mutual Fund has secured approval from the Securities and Exchange Board of India (SEBI) to launch the Choice Gold ETF, an open-ended exchange-traded fund aimed at tracking the domestic price of gold. Managed by Choice AMC Private Limited and overseen by Choice Trustees Services Private Limited, the fund will offer investors an affordable and transparent way to invest in gold through the stock exchanges.

Scheme Structure and Objective

The Choice Gold ETF is designed to track the movement of domestic gold prices while minimizing tracking error. With a face value of ₹10 per unit and a minimum subscription amount of ₹1,000 during the New Fund Offer (NFO), it caters to both retail and institutional investors. The ETF’s benchmark will be the domestic price of gold, with no entry or exit load. It will be listed on both the NSE and BSE within five working days of allotment.

Investment Strategy and Portfolio Allocation

The fund will follow a passive investment strategy, allocating about 95-100% of its assets to physical gold and gold-related instruments, including the Gold Monetisation Scheme (GMS) and Exchange Traded Commodity Derivatives (ETCDs). The remaining portion, up to 5%, may be held in cash or money market instruments to manage liquidity. The fund aims to keep tracking errors below 2% per annum, ensuring returns closely align with gold prices.

Liquidity, Costs, and Taxation

Investors can trade ETF units on exchanges just as they would with stocks. Large investors can transact directly with the fund in creation units of 10,00,000 units or more. Annual recurring expenses are capped at 1% of daily net assets, while capital gains and dividends will be taxed in accordance with existing income tax norms.

Outlook

With rising investor interest in gold as a hedge against market volatility, the Choice Gold ETF is expected to attract both long-term investors and short-term traders seeking efficient exposure to gold’s price movements.

REF: https://www.sebi.gov.in/sebi_data/attachdocs/oct-2025/1759900362317.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations