NFO Alert: 3 NFOs Opens For Subscription From Union and Edelweiss Mutual Fund

With New Fund Offers (NFOs) hitting the market, investors looking for gold-backed assets or debt instruments have a few options to consider. Three upcoming funds named Union Gold ETF, Union Gold ETF Fund of Fund, and Edelweiss CRISIL-IBX AAA Bond NBFC-HFC Jun 2027 Index Fund bring different opportunities and risk levels. Here’s a breakdown of what they offer.

Union Gold ETF

Category: Gold ETF
Dates: February 10 – February 17, 2025
Minimum Investment: ₹1,000
Exit Load: None
Risk Level: High
Fund Manager: Vinod Malviya

This fund is designed to mirror the domestic price of physical gold. It invests directly in gold, so that the returns are closely tied to market rates. However, as gold prices fluctuate, this ETF carries a high-risk rating. NAV calculations will be done daily, offering liquidity and real-time tracking.

Union Gold ETF Fund of Fund

Category: FoFs (Fund of Funds)
Dates: February 10 – February 24, 2025
NAV at Launch: ₹10
Minimum Investment: ₹500
Minimum SIP: ₹1,000
Risk Level: High

For those who want exposure to gold without directly dealing with ETFs, this Fund of Fund (FoF) invests in the Union Gold ETF. It offers lower entry points, with a minimum investment of ₹500 and SIP starting at ₹1,000. However, being a gold-based fund, it still comes with high risk.

Edelweiss CRISIL-IBX AAA Bond NBFC-HFC Jun 2027 Index Fund

Category: Debt – Target Maturity Index Fund
Open Date: February 10 – February 17, 2025
Minimum Investment: ₹100
Minimum SIP: ₹100
Exit Load: 0.1% (for redemptions within 30 days)
Risk Level: Moderate
Benchmark: CRISIL-IBX AAA NBFC-HFC – Jun 2027
Fund Manager: Dhawal Dalal

This target maturity debt fund invests in AAA-rated NBFC and HFC bonds, providing a relatively stable investment option. Investors in higher tax brackets may want to consider this fund, as taxation will be based on their applicable income slab. It has a moderate-risk rating, making it considerable for those seeking predictable returns with lower volatility than equity or gold funds.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.