The scheme will primarily invest in physical gold with a purity of 99.5% or higher, in line with London Bullion Market Association (LBMA) Good Delivery standards. The ETF will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), allowing investors to buy and sell units on the exchanges.
According to the fund house, the ETF structure provides exposure to gold without the need for physical storage or security arrangements. Unlike physical gold purchases, ETF pricing is linked to market prices and does not involve making charges or storage-related costs. Units can also be traded in smaller denominations, offering flexibility to investors.
Commenting on the launch, Madhu Lunawat, Founder, Managing Director and CEO of The Wealth Company Mutual Fund, said gold ETFs offer direct exposure to gold as an asset, without the additional costs typically associated with jewellery purchases.
Debasish Mohanty, Chief Strategy Officer at the fund house, said gold continues to play an important role in portfolios, particularly during periods of market uncertainty.
The launch comes amid sustained interest in gold as an investment asset. A recent World Gold Council report noted that factors such as falling yields, geopolitical risks and increased demand for safe-haven assets could support gold prices, with investment demand through ETFs expected to remain a key driver.
The Wealth Company Mutual Fund is part of the Pantomath Group and manages investment products across asset classes, including mutual funds and alternative investment funds.