NFO: Angel One AMC To Launch Angel One Gold ETF

Mumbai, 4 August 2025: Angel One Asset Management Company (AMC), the fund house promoted by Angel One Ltd, has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch the Angel One Gold ETF, a new open-ended exchange-traded fund that will mirror domestic gold prices. The new offering aims to provide a low-cost and liquid investment avenue for retail and institutional investors looking to hedge against inflation and diversify their portfolios.

SEBI Approves Angel One Gold ETF; New Investment Option to Mirror Domestic Gold Prices

The approved scheme is designed to track and replicate the price of physical gold in the domestic market, making it a cost-efficient alternative to traditional gold investments. The ETF will be listed on the National Stock Exchange (NSE) within five business days from the date of allotment and will be available for trading like equity shares.

Key details include:

• Scheme Name: Angel One Gold ETF
• Type: Open-ended Exchange-Traded Fund
• Benchmark: Domestic price of gold
• Face Value: ₹10 per unit
• Minimum Investment during NFO: ₹1,000 and in multiples of ₹1 thereafter
• Fund Managers: Mehul Dama and Kewal Shah
• Exit Load: Nil

Asset Allocation Strategy: 95-100% in Physical Gold and Related Instruments

The Angel One Gold ETF is structured to invest 95% to 100% of its corpus in physical gold and gold-related instruments, while 0% to 5% will be held in cash, money market instruments, or equivalents.

As per SEBI’s regulatory framework, the scheme’s:

• Investments in the Gold Monetisation Scheme (GMS) are capped at 20% of the net asset value (NAV)
• Total exposure to GMS and Exchange Traded Commodity Derivatives (ETCDs) is restricted to not more than 50% of NAV

Expense Ratio and Tracking Error Capped to Ensure Efficiency

The scheme is designed with cost transparency and tracking precision in mind:

• Total Expense Ratio (TER) is capped at 1.00% per annum
• Tracking error target: Not to exceed 2% annually under normal conditions
• Daily NAV Disclosure: NAV will be published by 11:00 p.m. daily on the Association of Mutual Funds in India (AMFI) and AMC’s official websites
• During trading hours, the fund will disclose the indicative NAV (iNAV) and tracking difference on the stock exchanges for real-time transparency

Liquidity and Redemption Options Cater to Both Retail and Institutional Investors

Retail investors can buy and sell units of the ETF directly on the NSE in lots of one, ensuring daily liquidity. For large investors and market makers, the ETF offers the flexibility of direct transactions with the fund in creation unit size, which is set at 10,20,000 units.

Direct redemption (without exit load) will also be permitted under certain special conditions, including:

• If the ETF trades at a persistent discount to NAV
• If there is illiquidity in the trading volume on the exchange

NFO Launch Date Yet to Be Announced; ₹5 Crore Minimum Collection Required

While Angel One AMC has secured SEBI approval, the New Fund Offer (NFO) dates are still awaited. To proceed with allotment, the scheme is required to collect a minimum of ₹5 crore. If the threshold is not met, all investor applications will be refunded within five working days from the NFO closure.

Strategic Focus: Angel One Expands Passive Product Suite with Gold ETF

With the launch of this gold ETF, Angel One AMC reinforces its strategic commitment to building a comprehensive suite of passive investment products. The introduction comes at a time when investors are increasingly seeking low-cost, tax-efficient and digitally accessible investment solutions. By offering a product that tracks physical gold without the hassle of storage, insurance, or purity verification, the AMC aims to capitalise on the rising demand for alternative asset classes.

Angel One AMC: Focused on Digital-First, Low-Cost Investment Products

Established in 2023, Angel One AMC is a SEBI-registered fund house promoted by Angel One Ltd. The AMC focuses on passive investment strategies and currently offers products including equity index ETFs and liquid ETFs. The company has positioned itself as a digital-first asset manager and continues to innovate by launching investment vehicles aligned with evolving investor preferences.

With the gold ETF, Angel One AMC seeks to tap into India’s traditional affinity for gold, while offering a modern, efficient, and transparent mechanism for market participation.

REF: https://www.sebi.gov.in/filings/mutual-funds/aug-2025/angel-one-gold-etf_95807.html

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