Shriram Gold ETF Passive FoF NFO 2026: A Simple Way to Add Gold to Your Portfolio?

The Shriram Gold ETF Passive FoF is a new mutual fund from Shriram Mutual Fund that provides investors exposure to gold without directly buying physical gold or purchasing a Gold ETF through a demat account.

The scheme is an open-ended Fund of Fund (FoF) that will invest primarily in units of various Gold ETFs. The NFO opens on 11 September 2026 and closes on 24 September 2026.

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Shriram Gold ETF Passive FoF – Quick Details

Particular	Details
Fund Name	Shriram Gold ETF Passive FoF
Fund Type	Open-ended Fund of Fund
Category	Commodity – Gold FoF
NFO Opens	11 September 2026
NFO Closes	24 September 2026
Reopens	30 September 2026
NFO Price	₹10
Minimum Investment	₹500
Additional Investment	₹500
Benchmark	Domestic Price of Physical Gold TRI
Risk	Very High
Fund Managers	Sudip More & Surjeet Kumar Singh
Lock-in	No
Exit Load	Nil

The scheme's objective is to generate long-term capital appreciation by investing in units of various Gold ETFs.

What Is Shriram Gold ETF Passive FoF?

To understand this fund, it is important to understand the word FoF — Fund of Fund.

A normal Gold ETF directly holds gold or gold-related assets according to its mandate.

But this fund will invest in Gold ETFs.

So the structure is:

Investor → Shriram Gold ETF Passive FoF → Gold ETFs → Gold

This means investors can get gold exposure through a mutual fund structure rather than buying a Gold ETF directly on the stock exchange.

How Will the Fund Invest?

According to the scheme documents, the fund will normally invest 95% to 100% of its assets in units of various Gold ETFs.

The remaining portion, up to 5%, can be invested in money-market instruments and other permitted instruments for liquidity and operational requirements.

The fund is therefore not trying to identify individual gold companies.

Its objective is simply to provide investors with exposure to the gold asset class through Gold ETFs.

Why Invest Through a Gold ETF FoF?

One major advantage is simplicity.

Investors don't need to:

• Buy physical gold

• Store gold at home

• Open a demat account specifically to buy a Gold ETF

• Select between different Gold ETFs themselves

Instead, they can invest through a mutual fund.

The minimum investment is also relatively low at ₹500.

Gold ETF vs Gold ETF FoF

This is an important difference.

Gold ETF

Investor → Gold ETF → Gold

Gold ETFs are traded on stock exchanges, so investors generally need a demat and trading account.

Gold ETF FoF

Investor → FoF → Gold ETF → Gold

The investor buys mutual fund units directly from the AMC/platform and does not need to trade the underlying Gold ETF on the exchange.

Therefore, the Shriram fund can be more convenient for investors who prefer the traditional mutual fund route.

What Is the Benchmark?

The benchmark is the Domestic Price of Physical Gold TRI.

The fund will therefore be evaluated based on how closely its performance corresponds to the domestic gold price, after considering expenses and the structure of the FoF.

Investors should remember that the fund's return will not necessarily be exactly equal to the movement in gold prices.

Fund Managers

The scheme is managed by Sudip More and Surjeet Kumar Singh.

However, because this is a passive Gold ETF FoF, the fund manager's role is different from that of an actively managed equity fund.

The primary objective is to manage the FoF efficiently and maintain the intended exposure to Gold ETFs.

NFO Investment Details

The NFO price is ₹10 per unit, with a minimum investment of ₹500 and additional investments starting from ₹500.

The SIP facility is also available, with the scheme documents specifying ₹500 per instalment for a minimum of 24 instalments or ₹1,000 per instalment for a minimum of 12 instalments.

But investors should remember:

₹10 NAV does not mean gold is available cheaply.

The NFO price only represents the initial unit price. The future value of the investment will depend primarily on gold prices and the costs involved.

Exit Load and Lock-in

The scheme currently has nil exit load.

There is also no fixed lock-in period, since this is an open-ended FoF.

However, investors should always check the latest scheme documents before investing.

A Very Important Point: Double-Layer Expenses

This is perhaps the most important disadvantage investors should understand.

The investor is investing in a Fund of Funds, which invests in Gold ETFs.

Therefore, there can be expenses at:

FoF level + underlying Gold ETF level

The scheme documents specifically state that investors bear the recurring expenses of the FoF in addition to the expenses of the underlying schemes.

The scheme's indicative maximum base expense ratio is up to 0.90%, while the underlying Gold ETFs also have their own expenses. Actual expenses can be lower.

This means investors should compare the total cost with directly investing in a Gold ETF or another Gold FoF.

What Are the Benefits?

1. Easy Gold Exposure

The fund provides exposure to gold without buying physical gold.

2. No Demat Account Required

Investors can use the mutual fund route instead of buying Gold ETFs on an exchange.

3. Low Minimum Investment

The minimum investment is ₹500.

4. Diversification

Gold can behave differently from equities and may provide diversification within a broader portfolio.

5. No Physical Gold Storage

There is no concern about storage, purity or making charges associated with physical jewellery.

What Are the Risks?

The fund is classified as Very High Risk.

Important risks include:

• Gold price volatility

• Currency movements

• Changes in global interest rates

• International economic conditions

• Changes in investor demand for gold

• Underperformance relative to physical gold because of expenses

• Underlying Gold ETF-related risks

• FoF-level and underlying-fund expenses

Gold is also not a guaranteed-return investment.

Its price can rise and fall significantly.

Should You Invest in Shriram Gold ETF Passive FoF NFO?

This fund may be interesting for investors who:

• Want gold exposure through the mutual fund route.

• Don't want to buy physical gold.

• Don't have or don't want to use a demat account for Gold ETFs.

• Want to use gold as a diversification asset.

• Have a long-term investment horizon.

It may not be suitable for investors who:

• Expect guaranteed returns.

• Want regular income from their investment.

• Already have excessive gold exposure.

• Are investing simply because gold prices have recently risen.

• Want the lowest possible cost of gold exposure without considering the FoF structure.

Final Verdict

The Shriram Gold ETF Passive FoF is essentially a convenient mutual-fund route to invest in Gold ETFs.

Its biggest advantage is simplicity:

You invest in one mutual fund, and that fund invests in Gold ETFs.

The minimum investment of ₹500 also makes it accessible to smaller investors.

However, investors should pay special attention to the FoF structure and total expenses, because costs can arise at both the FoF and underlying ETF levels.

Since this is a new fund, there is no fund-specific historical performance track record yet.

Therefore, the key question is not:

"Is ₹10 a cheap NAV?"

Instead, ask:

"Do I want gold exposure through a simple mutual fund route, and am I comfortable with the additional FoF cost structure?"

For investors looking to use gold as a portfolio diversification asset, this NFO could be worth studying, but it should be evaluated alongside existing Gold ETFs and Gold FoFs rather than judged only on its ₹10 NFO price.

FAQs

What is Shriram Gold ETF Passive FoF?
It is an open-ended Fund of Fund that invests primarily in units of various Gold ETFs.

When is the NFO open?
The NFO is open from 11 September 2026 to 24 September 2026. The scheme is scheduled to reopen on 30 September 2026.

What is the minimum investment?
The minimum investment is ₹500. Additional investments can also be made from ₹500.

What is the benchmark?
The benchmark is the Domestic Price of Physical Gold TRI.

Who manages the fund?
The scheme's listed fund managers are Sudip More and Surjeet Kumar Singh.

Does this fund invest directly in physical gold?
No. The FoF primarily invests in units of Gold ETFs, which in turn provide exposure to gold.

Does the fund have an exit load?
Current scheme information indicates nil exit load.

Does the fund have a lock-in period?
No. It is an open-ended scheme without a fixed lock-in.

Is this fund the same as buying a Gold ETF?
No. A Gold ETF is directly purchased and traded on the exchange, while this FoF invests in Gold ETFs through the mutual fund structure.

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Disclaimer

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This article is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any mutual fund.