HDFC Mutual Fund has launched the HDFC Gold Silver Passive FOF, an open ended fund of fund investing in units of the HDFC Gold ETF and the HDFC Silver ETF. The NFO opened on 24 August 2026 and closes on 07 September 2026.
This is HDFC Mutual Fund’s second attempt at such a scheme. The AMC withdrew an earlier version in May 2026, after the government raised import duty on gold and silver, as reported by Outlook Money, and has since refiled with a fresh document.
The scheme brings gold and silver together in a single fund. No demat account is needed, since units are not exchange-listed, which may interest investors wanting a simpler, paperless way to build that allocation.
HDFC Gold Silver Passive FOF NFO details
Fund name | |
Fund type | Open ended fund of fund |
Category | Commodity based FOF (Domestic) |
Nature of scheme | Passive, Gold and Silver ETF units |
Benchmark | Gold price (70%) + silver price (30%) |
Fund managers | Bhagyesh Kagalkar (dedicated) |
NFO opens | 24-08-2026 |
NFO closes | 07-09-2026 |
Allotment | Within 5 working days of closure |
Minimum investment | Rs. 100, and any amount thereafter |
Additional investment | Rs. 100 |
SIP amount | Not available |
NAV | Rs. 10 per unit during NFO |
Stamp duty | 0.005% purchase; 0.015% transfer |
Entry load | Nil |
Exit load | 1% within 15 days; nil after |
HDFC Mutual Fund: AMC details
AMC name | HDFC Asset Management Company Limited |
Assets under management | ₹9.3L lakh crore to ₹9.6 lakh crore |
Website | |
Registered office | HDFC House, 2nd Floor, H. T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai 400020 |
Contact number | 1800 3010 6767 / 1800 419 7676 (toll free) |
Source: AMFI India — New fund offer | HDFC Gold Silver Passive FOF
What has HDFC Mutual Fund launched?
The HDFC Gold Silver Passive FOF is an open ended fund of fund, or FoF. Rather than buying gold directly, it buys units of other funds, namely the HDFC Gold ETF and the HDFC Silver ETF, both of which hold physical metal.
The objective is to generate returns from these two exchange traded funds (ETFs). At least 95% of assets go into ETF units, with up to 5% in debt and money market instruments for liquidity.
This is a passive fund: no stock picking or credit research. The main job is deciding the gold-silver split and keeping ETF holdings in line with it. The scheme does not buy bullion itself; that happens a level down, inside the two ETFs. The appeal is convenience: one folio for two metals, no demat account, no separate tickers.
How does the HDFC Gold Silver Passive FOF strategy work?
The fund does not hold gold or silver directly. It holds ETF units, and those two schemes own the metal. Money coming in buys ETF units, whichever route is more efficient.
Step | What happens? |
1 | You invest a lump sum, or start a SIP. |
2 | The fund pools this with other investors’ money. |
3 | The manager sets the gold-silver split. |
4 | The AMC buys ETF units in that split. |
5 | The ETFs hold the metal behind their units. |
6 | The FoF’s NAV moves with the combined ETF value. |
7 | On redemption, units are sold and you are paid at NAV, minus any exit load. |
Let’s understand HDFC Gold Silver Passive FOF through an example
Say you invest Rs. 10,000 in the NFO, at Rs. 10 per unit, before stamp duty. You would be allotted close to 1,000 units. That money joins the fund’s pool, which the manager uses to buy Gold ETF and Silver ETF units in the chosen split. Your unit count does not change once allotted; its value moves with the FoF’s NAV, which tracks the combined ETF value. This illustrates the process only, not a return projection.
HDFC Gold Silver Passive FOF portfolio allocation
Not a multi-asset fund: nearly all the money sits in the two metal ETFs, with a small cash-like buffer for liquidity. No allocation to equity, long-duration debt, REITs, InvITs, or overseas instruments.
Instrument | Minimum | Maximum |
Units of HDFC Gold ETF and HDFC Silver ETF | 95% | 100% |
Debt securities and money market instruments | 0% | 5% |
HDFC Gold Silver Passive FOF investment strategy
Because this is a passive FoF, there is no security selection as in an actively managed equity fund. The manager’s discretion is largely limited to setting the gold-silver mix. Two layers of cost apply: the FoF’s own expense ratio, capped at 0.90% of daily net assets, plus the two ETFs’ own expense ratios. The scheme document is explicit that investors bear this dual expense.
Tracking is a two-step process too. The ETFs may not perfectly mirror physical metal prices, called tracking difference, and the FoF’s NAV can vary a little from the ETFs’ NAV, since it deals in bulk creation units. Liquidity works through daily NAV-based redemption, since units are not exchange-listed, with proceeds paid within 3 working days.
Potential benefits of HDFC Gold Silver Passive FOF
Potential benefit | Why does it matter? |
One fund, two metals | Exposure to gold and silver without two separate ETF holdings. |
No demat account needed | Invest through a regular mutual fund folio. |
SIP and STP available | Build the allocation gradually, not in one lump sum. |
Professional rebalancing | The manager adjusts the mix rather than leaving it to you. |
Low minimum ticket | Start with as little as Rs. 100. |
Things to understand before investing in HDFC Gold Silver Passive FOF
Factor | What does it mean? |
Metal price swings | The scheme’s value moves directly with gold and silver prices. |
Tracking difference | The ETFs, and the FoF, may not move in perfect step with metal prices. |
Currency movement | ETF pricing links to imported value, so rupee-dollar moves feed into NAV. |
No exchange listing | Exit only through redemption at the day’s NAV, not intraday. |
Underlying fund constraints | A pause in ETF purchases can affect the FoF too. |
No assured return | No minimum or guaranteed outcome is promised. |
Who may consider the HDFC Gold Silver Passive FOF NFO?
Investor type | Why it may fit |
Already holding gold or silver | Wants one folio instead of separate ETFs or physical metal. |
Goal-based savers, 5+ years | Wants a small, steady metal sleeve alongside equity and debt. |
SIP investors | Prefers to average in gradually, not in one lump sum. |
No demat account | Still wants exposure to gold and silver ETFs. |
Who may not find HDFC Gold Silver Passive FOF suitable?
Investor type | Why |
Wants a single-metal, low-cost ETF | A FoF adds a second expense layer over the ETF’s own charges. |
Needs intraday liquidity | Units cannot be traded on the exchange during the day. |
Expects steady, predictable returns | Prices can move sharply in either direction. |
Wants this as their only holding | No allocation to equity or long-duration debt. |
HDFC Gold Silver Passive FOF vs traditional investment options
Parameter | FD | Debt Fund | Hybrid Fund | Equity Fund | This FoF |
Return potential | Fixed | Moderate | Moderate-high | High, long term | Metal-price linked |
Volatility | Nil | Low-moderate | Moderate | High | Moderate-high |
Liquidity | Limited pre-maturity | High | High | High | High, NAV-based |
Horizon | Short-medium | Short-medium | Medium-long | Long term | Medium-long |
HDFC Gold Silver Passive FOF Review by Zenith Finserve
The HDFC Gold Silver Passive FOF fills a narrow role: a single-fund route into gold and silver, sized as a small slice of a portfolio rather than a core holding. It suits an investor who already treats precious metals as a modest sleeve of their allocation, managed through one folio instead of two ETF tickers.
The fund carries the dual-expense structure common to all FoFs, and its returns will track two commodities that can move independently, and sometimes sharply, in a given year. Investors comfortable holding through price cycles are better placed here than someone parking short-term money.
This fits a goal some years away, such as 2032-2034, where the investor wants steady precious metal exposure without trading it actively. It should sit alongside, not instead of, an equity and debt core. Weigh your existing holdings and horizon before adding it to your portfolio.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments.
We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith Finserve
HDFC Nifty Metal ETF FOF NFO: another HDFC FoF, but tracking metal and mining shares through an index, not physical gold and silver.
AlphaGrep Liquid Omni FOF NFO: also a FoF, built around liquid, low duration debt schemes rather than commodities.
Also read: A guide to mutual funds in India and Zenith’s mutual fund advisory service.
Frequently asked questions
What is HDFC Gold Silver Passive FOF?
A FoF investing in units of HDFC Gold ETF and HDFC Silver ETF.
When does the NFO open and close?
24 August to 07 September 2026.
What is the minimum investment amount?
Rs. 100, and multiples of Re. 1 thereafter.
Is HDFC Gold Silver Passive FOF NFO good to invest in?
Depends on your goals, existing metal holdings and horizon. It is a portfolio sleeve, not a standalone plan, so evaluate suitability before investing.
What is the NAV during the NFO?
Rs. 10 per unit.
Does this fund invest in physical gold and silver directly?
No, it invests in ETF units that hold the physical metal.
What is the exit load?
1% within 15 days of allotment, nil after.
Can I start a SIP in this fund?
Yes, with SIP top-up, SIP pause and STP facilities.
Do I need a demat account to invest?
No, units can be held in account statement or demat form.
Why launch this NFO after withdrawing an earlier version?
HDFC withdrew a similar NFO in May 2026 after an import duty hike, and has now refiled with a fresh document.
What is the benchmark?
Domestic physical gold price (70%) plus physical silver price (30%).
HDFC Gold Silver Passive FOF review: what should I check first?
Your existing metal exposure, overall allocation, the dual expense structure, and your comfort with price swings.
