Baroda BNP Paribas MF's new Gold ETF Fund of Fund: All you need to know

Baroda BNP Paribas Mutual Fund has recently launched the Baroda BNP Paribas Gold ETF Fund of Fund (FoF), aiming to offer retail investors a convenient way to invest in gold. The New Fund Offer (NFO) will remain open until August 14, 2025. The fund provides a cost-effective solution for those who find the direct purchase of gold challenging due to rising prices, with investment starting at ₹1,000 for lump sums or ₹500 per month for Systematic Investment Plans (SIPs). The fund invests in units of the Baroda BNP Paribas Gold ETF, which holds physical gold.

The fund's launch is timely, as gold prices approach ₹1 lakh per 10 grams. This initiative facilitates gold investment through mutual fund units, eliminating the complexities associated with owning physical gold.

Prashant Pimple, CIO – Fixed Income at Baroda BNP Paribas MF, stated, "With its low cost of holding, ease of transaction, and low minimum investment amount, we’ve tried to make gold accessible again to retail investors." The fund has a 1% exit load for redemptions within 15 days of allotment, but none beyond that, enhancing its flexibility for investors.

Managed by Gurvinder Singh Wasan, Madhav Vyas, and Swapna Shelar, the scheme leverages gold's historical performance, which has frequently matched or surpassed equities, while offering diversification benefits due to its low correlation with the equity markets.

Baroda BNP Paribas MF is a joint venture between Bank of Baroda and BNP Paribas Asset Management, and it offers 46 schemes across various categories, including equity, hybrid, debt, and overseas FoF. This launch underscores the fund house's commitment to providing innovative investment solutions.