Choice Mutual Fund has announced the launch of a gold exchange-traded fund (ETF), ‘Choice Gold ETF’, offering investors a viable option to gain exposure to gold — often viewed as a portfolio diversifier and a potential store of value across market cycles. The NFO opens today, October 24, 2025, and will remain available until October 31, 2025. Afterward, within a week, it is intended to be listed on BSE and NSE for continuous sale and purchase.
According to the Scheme Information Document (SID), the scheme is a passively managed exchange-traded fund that will employ an investment approach designed to track the performance of the domestic price of gold. The scheme shall invest in physical gold and gold-related instruments regardless of their investment merit and will attempt not to apply any economic, financial, or market analysis. The scheme will invest at least 95% of its total assets in gold and gold-related instruments and may hold up to 5% of its total assets in money market securities.
The NFO offers units at ₹100/- each on the date of allotment for applications received during the New Fund Offer (NFO) period, and at intra-day NAV-based prices during the ongoing offer for applications directly received at the AMC.
The NFO is benchmarked against the domestic price of gold. According to the SID, the risk of the fund, as well as the benchmark, is high.
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The scheme seeks to generate returns in line with the performance of physical gold at domestic prices, subject to tracking error. During the NFO, the minimum application amount is ₹1,000, with additional investments allowed in any amount thereafter.
Rochan Pattnayak is the Chief Investment Officer of Choice Mutual Fund.
“Indian households have a penchant for gold investment, whose prices have recently crossed the milestone of ₹1.2 lakh per 10 grams. It is scaling new heights against the backdrop of continuing trade wars, geopolitical conflicts, and financial market turmoil. Notably, gold ETF investors carry no risk of physical storage, yet the instrument offers the same market value and growth potential as physical gold,” said Ajay Kejriwal, CEO of Choice Mutual Fund.
“In an era of geopolitical tensions and economic uncertainty, it is one of the best asset classes that ensures safety for one’s money and has the potential to provide long-term returns by beating persistent inflation and market volatility,” Kejriwal added.
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Should you invest in Choice Gold ETF NFO?
According to the SID, the product is suitable for investors seeking long-term capital appreciation and investment in gold in order to generate returns similar to the performance of the domestic price of gold, subject to tracking errors.
“Investors should consult their financial advisors if in doubt about whether the product is suitable for them,” said Choice Mutual Fund in the SID.
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