Shriram Mutual Fund has launched the Shriram Gold ETF Passive FOF, a new fund offer from Shriram Asset Management Company Limited, open for subscription from 11 September 2026.
The offer closes on 25 September 2026. Shriram Gold ETF Passive FOF is an open ended fund of funds, or FOF, a scheme that invests in units of other funds rather than buying shares or bonds directly. It aims to generate long term capital appreciation by investing in units of various Gold ETFs, which hold physical gold.
Gold has long served Indian households as a hedge against inflation and currency swings. This fund offers a single mutual fund route into that exposure, without needing a demat account or a choice between different Gold ETFs.
Shriram Gold ETF Passive FOF NFO details
Fund name | |
Fund type | Open ended Fund of Fund scheme investing in units of Gold ETFs |
Category | Commodity based FoF (Domestic) |
Nature of scheme | Open ended |
Benchmark | Domestic Price of Physical Gold (TRI) |
Fund managers | Mr. Sudip More and Mr. Surjeet Kumar Singh |
NFO opens | 11 September 2026 |
NFO closes | 25 September 2026 |
Reopens for continuous sale and repurchase | 30 September 2026 |
Minimum investment | Rs 500, in multiples of Re 1 thereafter |
Additional investment | Rs 500, in multiples of Re 1 thereafter |
SIP amount | Rs 500 per instalment for a minimum of 24 instalments, or Rs 1,000 per instalment for a minimum of 12 instalments |
NAV during NFO | Rs 10 per unit |
Risk level | Very high risk, for both the scheme and its benchmark |
Stamp duty | 0.005% of transaction value, levied on mutual fund transactions since July 2020 |
Entry load | Nil (SEBI has abolished entry load on all mutual fund schemes since 2009) |
Exit load | Nil |
AMC details
AMC name | Shriram Asset Management Company Limited |
Assets under management | ₹1,160.83 crore |
Website | |
Registered office | 217, 2nd Floor, Swastik Chambers, Near Junction of S.T. and C.S.T. Road, Chembur, Mumbai 400071 |
Contact number | (022) 6947 2400 |
Source: AMFI India — New fund offer: Shriram Gold ETF Passive FOF
What has Shriram Asset Management launched?
Shriram Gold ETF Passive FOF is a fund of funds. It does not buy gold or shares directly. Instead, it buys units of other Gold ETFs, which themselves hold physical gold. An ETF, or exchange traded fund, trades on a stock exchange like a share.
The scheme follows a passive strategy. The fund manager does not pick which gold ETF to favour. There is no active stock selection, since the fund simply buys units of existing Gold ETFs in the SID’s set allocation.
Under normal conditions, the scheme keeps 95% to 100% of assets in Gold ETF units. The rest, up to 5%, sits in money market instruments, mainly for day to day redemptions.
Because it invests through a fund of funds rather than an exchange traded ETF, an investor does not need a demat account. Units are bought and sold like a regular mutual fund, at the scheme’s own NAV, or net asset value, the price of one unit.
How does Shriram Gold ETF Passive FOF’s strategy work?
Step | What happens? |
1 | Investor applies during the NFO and pays Rs 10 per unit. |
2 | The AMC pools money from all investors during the NFO window. |
3 | After the NFO closes, the fund buys units of various listed Gold ETFs. |
4 | A small portion, up to 5%, sits in money market instruments for liquidity. |
5 | The scheme’s NAV is published daily, based on the value of its holdings. |
6 | If the mix of holdings drifts from the set allocation, the fund manager rebalances it. |
Let’s understand through an example
Suppose an investor puts Rs 10,000 into Shriram Gold ETF Passive FOF at the NFO price of Rs 10 per unit, getting 1,000 units.
The AMC pools this with other investors’ money. Once the NFO closes, the fund deploys nearly all of it into Gold ETF units. A small slice stays in short term instruments, to fund redemptions without disturbing the gold holdings.
The value of the investor’s units then moves with the combined value of the underlying Gold ETF units, adjusted for costs. This example only explains the process. It is not a return projection.
Portfolio allocation
Instrument | Minimum | Maximum |
Units of various Gold ETFs | 95% | 100% |
Money market instruments, including tri party repo and debt or liquid scheme units | 0% | 5% |
Investment strategy behind Shriram Gold ETF Passive FOF NFO
As a fund of funds, this scheme applies no market view of its own. It holds units of other Gold ETFs in the set allocation, rebalancing if that drifts.
Because money passes through two layers, the underlying Gold ETF and this FOF, investors bear costs at both levels. This is expense ratio stacking. The FOF’s own base expense ratio can run up to 0.90% of daily net assets, on top of the underlying Gold ETFs’ own charges.
Liquidity works differently to a Gold ETF bought on an exchange. Investors transact at the fund’s own daily NAV, not a live exchange price. This removes intraday premium or discount risk, but redemption still depends on the underlying ETFs’ own liquidity.
Potential benefits of Shriram Gold ETF Passive FOF
Potential benefit | Why does it matter? |
No demat account needed | Gold ETF exposure through a regular mutual fund folio. |
Diversification across ETFs | Spreads exposure across more than one Gold ETF. |
SIP available | Build gold exposure gradually, from Rs 500 a month. |
Inflation hedge | Gold often moves differently from equity and debt in stress. |
Key risks in Shriram Gold ETF Passive FOF
Risk | What does it mean? |
Market risk | Returns depend entirely on gold prices, which can fall as well as rise. |
Concentration risk | No equity or debt cushion. A gold price fall affects the whole portfolio. |
Liquidity risk | Redemptions depend on the underlying Gold ETFs’ own exchange liquidity. |
Cost layering risk | Investors bear this scheme’s costs on top of the underlying ETFs’ charges. |
No guaranteed returns | The AMC and trustee do not guarantee the objective will be met. |
Who may consider this fund?
Investor type | Why it may fit |
Wants a small gold allocation | Suits a satellite holding of roughly 5% to 10% of a portfolio. |
Has no demat account | Gold ETF exposure without needing a trading or demat account. |
SIP investors | Can build a gold position gradually from Rs 500 a month. |
3 to 5 year horizon or longer | Gold cycles can run for years, so a short horizon may not suit. |
Who may not find it suitable?
Investor type | Why it may not fit |
Wants a single, direct gold exposure | Buying one Gold ETF directly avoids the FOF’s added cost layer. |
Seeks regular income | No coupon or interest, only exposure to gold’s price. |
Very short horizon | Gold prices can stay flat or fall for extended periods. |
Wants a diversified core holding | This is a single asset class fund, not a diversified portfolio. |
Comparison with traditional investment options
Option | Risk | Return potential | Liquidity |
Fixed Deposit | Low | Fixed, modest | Moderate |
Debt Mutual Fund | Low to moderate | Modest | High |
Hybrid Fund | Moderate | Moderate | High |
Equity Mutual Fund | High | High, long term | High |
This Gold FOF | Very high | Tied to gold | High, at daily NAV |
Shriram Gold ETF Passive FOF Review by Zenith Finserve
Shriram Gold ETF Passive FOF gives indirect gold exposure through a mutual fund structure, rather than an exchange traded Gold ETF or physical gold. This fits investors who already hold a diversified equity and debt portfolio and want a small, dedicated gold sleeve, typically 5% to 10% of the total portfolio, not a primary holding.
The fund carries a very high risk label, like every Gold ETF and gold FOF, since its fate rests on the gold price. It suits a horizon of three to five years or more, long enough to sit through gold’s cycles without redeeming at a low point.
Since it charges costs at both the FOF and ETF level, cost conscious investors should weigh it against buying a Gold ETF directly, if they hold a demat account.
This is a diversification tool, not a core holding. Weigh your existing gold exposure through jewellery, digital gold, or Sovereign Gold Bonds, and overall asset allocation, ideally with a financial adviser.
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.
Read more about our approach on the about us page, or explore our mutual fund advisory service.
Similar NFOs on Zenith
AlphaGrep Liquid Omni FOF NFO: a debt based fund of funds, useful for comparing FOF cost layering across asset classes.
HDFC International — Emerging Markets Equity Fund NFO: a fund of funds investing overseas, showing how the structure adapts across very different assets.
Kotak Multi Sector Omni FOF NFO: a sector equity fund of funds, useful for contrast against this gold based one.
Frequently asked questions
What is Shriram Gold ETF Passive FOF?
A new fund of funds from Shriram Mutual Fund investing in units of various Gold ETFs.
When does the NFO open and close?
It opens 11 September 2026 and closes 25 September 2026.
Is Shriram Gold ETF Passive FOF NFO good to invest in?
Suits a small gold allocation. Weigh it against your goals and existing gold holdings first.
What is the minimum investment?
Rs 500 as a lump sum, and in multiples of Re 1 thereafter.
Does this fund need a demat account?
No. Units are held like a regular mutual fund folio.
What is the exit load?
Nil.
What is the entry load?
Nil, since SEBI has abolished entry loads on all mutual fund schemes.
How risky is this fund?
Very high, since returns depend entirely on gold prices.
Who manages the scheme?
Mr. Sudip More and Mr. Surjeet Kumar Singh.
Can I start an SIP?
Yes, from Rs 500 a month, for a minimum of 24 instalments.
