Have gold or silver investment in mind for the upcoming Dhanteras and Diwali festivals? You may consider investing in Gold or Silver Exchange Traded Funds (ETFs) as well. There are several Gold and Silver ETF schemes available in the market. There is also an option to invest in new fund offers of Gold and Silver ETF fund of funds.

There are two new fund offers (NFOs) of Gold and Silver ETFs currently available for investment. The last date to apply for these schemes is October 21. Here’s a look at the key features of these schemes:

HDFC Silver ETF Fund of Fund (FOF)

HDFC Silver ETF FOF is an open-ended Fund of Fund scheme investing in HDFC Silver ETF. The NFO opened on October 7, 2022. It will close on October 21, 2022.

The Silver FOF doesn’t require a Demat account for investment. One can invest in this NFO in small amounts through SIP and STP. HDFC Silver ETF FOF aims to provide capital appreciation by investing in units of HDFC Silver ETF. The Fund encourages investors to get exposure to silver due to its multi-purpose utility.

Also Read: How not to be fooled while buying Gold for Dhanteras and Diwali: 5-point guide

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UTI Gold ETF Fund of Fund

UTI Gold ETF Fund of Fund is also an open-ended scheme aiming to provide returns that correspond to returns provided by UTI Gold ETF by investing in units of UTI Gold ETF. The new fund offer of this scheme opened on 10th October 2022 and closes on 21 October 2022. The scheme will reopen on October 31, 2022. The minimum subscription amount for investment in this NFO is Rs 5000 and thereafter in multiples of Re 1.

The Scheme Information Document says this product may be suitable for investors who are seeking long-term capital growth and returns that are commensurate with the performance of UTI Gold ETF through investment in units of UTI Gold ETF. The scheme will invest 95-100% of its assets in units of UTI Gold ETF. It can invest up to 5% in money market instruments.

In both the above schemes, investors should note that there is no guarantee or assurance that the investment objective of the funds will be achieved.

(Mutual fund investments are subject to market risks. Please consult your financial advisors before investing)