HDFC Gold Fund (Growth)

HDFC Gold Fund (Growth) is an Open-ended Fund of Fund Scheme investing in the HDFC Gold Exchange Traded Fund. It aims to provide capital appreciation to its investors. Since it is a gold scheme, the returns earned by HDFC Gold Fund (Growth) are similar to the appreciation of physical gold over the medium to long term. However, this is subject to tracking error. The prescribed asset allocation of the corpus is 95% to 100% towards Units of HDFC Gold Exchange Traded Fund. Furthermore, 0% to 5% is allocated towards Debt securities and money market instruments. The scheme may involve corporate debt securities, repo and reverse repo, credit default swaps, short selling and other transactions 

Investment Objective of HDFC Gold Fund (Growth)

The investment aim of HDFC Gold Fund (Growth) is to seek capital appreciation by purchasing HDFC Gold Exchange Traded Fund units (HGETF). The Scheme will primarily invest in HGETF units in order to meet its investment goal. The Scheme will acquire and sell HGETF units either directly from the Fund or through the Stock Exchange’s secondary market (s). Investments in debt securities and money market instruments will be limited to the limitations set out in the Scheme’s asset allocation, subject to the permissible limits set out in the SEBI (MF) Regulations.Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.The Scheme may also invest in mutual fund schemes. 

Scheme Details of HDFC Gold Fund (Growth)

HDFC Mutual Fund launched the HDFC Gold Fund (Growth) on November 01, 2011. The fund has been in existence for the past 11 years. 

NAV and Returns – The NAV of the fund as of 13th April 2022 is Rs  16.51. The risk-o-meter of the fund is moderately high. Hence, an investor must understand that their principal investment amount will be at moderately high risk. Owing to the fund’s objective, it invests a minimum of 95% of its assets in units of HDFC Gold Exchange Traded Fund units (HGETF). Since its inception, the scheme has delivered a return of 4.90%.

Minimum Investment – The minimum amount for a lump sum investment is Rs 5,000. For a SIP the minimum investment amount is Rs 1,000.

Plans and Options – An investor can invest either in the direct plan or the regular plan of the scheme. The portfolio under both the plans is the same. The fund provides growth options only. The income attributable to Units under the growth option will be reinvested and reflected in the Net Asset Value of these Units. 

Expense Ratio – The fund charges an expense ratio of 0.54% on the units of the mutual funds. 

Exit Load – If units are redeemed or switched out within 6 months of the date of allotment, an Exit Load of 2% is charged on each purchase or switch-in of units. If Units are redeemed or switched out after 6 months but within 1 year of the date of allotment, an Exit Load of 1% is due. If Units are redeemed or switched out after 1 year from the date of Allotment, no Exit Load is due. Unless the investment was made directly, without the use of a distributor code, switching from a Regular Plan to a Direct Plan within the same Scheme will be subject to the applicable exit load. However, there will be no exit load on any subsequent switch-outs or redemptions of such investments from the Direct Plan. There will be no exit load if you switch from the Direct Plan to the Regular Plan inside the same Scheme. Any future switch-out or redemption of such investment from the Regular Plan, on the other hand, will be subject to an exit load based on the date of the original investment in the Direct Plan. Switching investments between Plans in a Scheme with multiple portfolios is subject to the applicable exit load. On Bonus Units and Units issued on Re-investment of Income Distribution or Capital Withdrawal, there would be no exit load. Under the Transfer of Income Distribution cum Capital Withdrawal (IDCW) Plan Facility, no exit load will be imposed on Units issued under the Target Scheme (TIP Facility).

Fund Manager – Mr Kishan Daga manages the fund. Mr Daga is a Bachelors of Commerce (H). He worked with Reliance Mutual Fund, Reliance Capital Ltd., Deutsche Securities, B&K Securities, Brics Securities, JP Morgan Securities, and HSBC Securities before joining HDFC AMC.

Other Details – There is no lock-in period for the scheme. So, an investor can redeem an investment anytime without any redemption limit. As of 13th April 2022, the AUM ofKotak Gold Fund (G) is Rs 1,334 cr. The fund benchmarks the Domestic Price of Gold. This fund is meant for investors with a minimum investment horizon of 5 years. 

Growth Review of HDFC Gold Fund (Growth)

Scripbox recommends HDFC Gold Fund (Growth) for investment within the gold mutual fund category. A gold mutual fund invests largely in gold exchange traded funds or equities of firms that mine, refine, or market gold and/or gold-related products. Moreover, the fund is suitable for an investment duration of 5 years or longer to fulfil these investment goals.

The fund invests in units of HDFC gold exchange traded fund. The fund has a low expenses ratio. It has the second highest AUM in this category. The fund has a track record of over 10 years.

The quarterly outperformance count measures the number of quarters that the fund outperformed its benchmark. Higher the out-performance count, higher the consistency of the fund’s performance. HDFC gold Fund’s outperformance count was good among its peers.

This gold fund has delivered a compounded annual growth rate of 12% return during a four-year period. This is much better than schemes with similar investment mandates.

1. With the existence of 11 years, the fund has a sufficient history for analysis of past performance. Moreover, the fund’s track record is good. 
2. With an AUM or relative size of Rs 1,334 cr, the scheme’s relative size is large within the category of the gold mutual fund.

Fund Performance

Annualised Returns

Performance Ratio

Asset Allocation

Frequently Asked Questions

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