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Zerodha Fund House today announced the launch of its new scheme Zerodha Gold ETF FoF (Fund of Funds), an open-ended, fund of fund scheme investing in units of Gold ETF. The scheme opens for subscription on October 25, 2024, and will close on November 8, 2024.

On the launch of the fund, Vishal Jain, CEO, Zerodha Fund House said, “Gold is commonly seen as a commodity that retains its worth and buying power in times of inflation. This fund provides a convenient and effective method for investing in gold without worrying about storage or security. As Gold has a low correlation with equity, it helps to lower the overall volatility of your investment portfolio."

Zerodha Gold ETF FoF is a scheme with a passive investment strategy which will invest in units of underlying Gold ETF. The investment objective of the scheme is to seek capital appreciation by investing in units of Gold ETF, which is in turn linked to the performance of physical gold in the domestic market. The Zerodha Gold ETF FoF will invest 95%-100% in units of underlying Gold ETF while 0%-5% fund allocation will be in debt securities and money market instruments.

Vaibhav Jalan, CBO, Zerodha Fund House also commented on the launch, "Our Gold FoF is designed to make gold investing easier and more accessible for everyone. The option to invest via SIP allows investors to gradually build their exposure to gold over time, making it an ideal solution for both first-time and seasoned investors."

The minimum amount for application is ?500 and in multiples of ?1 thereafter. The starting Net Asset Value (NAV) of this fund will be around ?10.

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