In an era of market uncertainty and rising inflation, investors are increasingly turning toward safe-haven assets like gold. Recognizing this growing demand, Choice Mutual Fund has launched a brand-new Choice Gold ETF through a New Fund Offer (NFO).
The NFO opened for subscription on October 24, 2025, and will close on October 31, 2025.
This launch gives investors a new opportunity to participate in the movement of domestic gold prices through a transparent and exchange-listed product.
Key Highlights of Choice Gold ETF
| Particular | Details |
|---|---|
| Fund Name | Choice Gold ETF |
| Fund House | Choice Mutual Fund |
| NFO Open Date | October 24, 2025 |
| NFO Close Date | October 31, 2025 |
| Type | Open-ended Exchange Traded Fund |
| Benchmark | Domestic Price of Gold |
| Minimum Investment | ₹1,000 |
| Investment Objective | To generate returns that closely track the domestic price of gold, subject to tracking error |
| Listing | To be listed on NSE & BSE after NFO closure |
| For Further Details Please Visit Website | https://choicemf.com/ |
Why Investors Are Focusing on Gold in 2025
Global markets have been volatile due to inflation, currency depreciation, and geopolitical tensions. Amid these challenges, gold has proven to be a reliable store of value.
Unlike physical gold, ETFs bring convenience, safety, and liquidity — you can buy or sell units directly through your demat account, without worrying about purity, storage, or making charges.
What Makes Choice Gold ETF Stand Out
- Low Minimum Entry – Investors can start with as little as ₹1,000, making it ideal for beginners.
- Digital Convenience – The ETF format eliminates the need to hold or store physical gold.
- Transparent Pricing – Units reflect real-time gold prices in India.
- Inflation Shield – Gold often performs well when inflation rises, balancing portfolio risk.
- Diversification Tool – Helps in maintaining asset balance between equity, debt, and commodities.
Risks and Considerations
Even though gold ETFs are safer than equities, they are not risk-free.
Here’s what investors should keep in mind:
- Price Volatility: Gold prices can fluctuate based on global markets and central bank policies.
- Tracking Error: Small deviations may occur between gold’s actual price and ETF returns due to fund expenses.
- Liquidity: Initially, trading volume may be low until the ETF gains investor participation.
Comparison with Other Gold ETFs
Before investing, compare Choice Gold ETF with existing players like:
- SBI Gold ETF
- HDFC Gold ETF
- Nippon India Gold ETF
While these established funds have a proven track record, the new entrant by Choice Mutual Fund may attract attention through competitive expense ratios and a modern investment approach.
Who Should Invest
- Long-term investors aiming for portfolio diversification.
- Individuals seeking a hedge against inflation or currency weakness.
- Investors who prefer paper gold instead of physical holdings.
Not ideal for those looking for short-term returns or monthly income. Gold ETFs should be viewed as a strategic allocation, not a trading instrument.
Taxation Overview
- Short-Term Capital Gains (STCG): Taxed as per your income slab if held for less than 3 years.
- Long-Term Capital Gains (LTCG): 20% tax with indexation benefit if held for 3 years or more.
- Demat Requirement: Investment and redemption happen through your trading/demat account.
The Broader Market Context
As of October 2025, gold is trading near record highs — around ₹1.2 lakh per 10 grams — supported by strong global demand and central bank accumulation.
With global uncertainty persisting, adding a small portion of gold via ETF can act as a stabilizer in an equity-heavy portfolio.
Final Verdict
The Choice Gold ETF NFO comes at a perfect time for investors seeking to hedge against volatility and inflation. Its low entry barrier, transparent structure, and digital convenience make it a promising option for those wanting exposure to gold.
However, like every NFO, investors must remember that past performance data is not available, and hence, it’s wise to invest only after evaluating your asset allocation goals.
Author Note
I am Abhishek Chouhan, a finance and investment blogger with 10 years of experience in the financial markets and blogging.
I am also an AMFI-Registered ARN Holder (ARN–165168).
This analysis is prepared for educational and informational purposes to help readers make informed financial decisions.
Disclaimer
This article is for educational purposes only and does not constitute any buy or sell recommendation.
Readers are advised to consult their financial advisor before making any investment decisions.
Downloads & Disclosures :
- Scheme Information Document (SID)
- Scheme Additional Information (SAI)
- Key Information Memorandum (KIM)
- Product Note
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