360 ONE Mutual Fund (formerly known as IIFL Mutual Fund) introduced the 360 ONE Gold ETF on February 20, 2025. This open-ended exchange-traded fund (ETF) is designed to mirror returns linked to domestic gold prices while accounting for potential tracking errors. The NFO, which monitors gold prices within the country, will be accessible until February 28, 2025. The scheme will re-open for continuous sale and repurchase from March 10, 2025.
The 360 ONE Gold ETF is a fund that is managed passively and aims to replicate the performance of the domestic price of gold. At least 95% of the fund’s total assets will be invested in gold or gold-related instruments, with the possibility of holding up to 5% of its assets in debt or money market securities.
Investors can participate in the 360 ONE Gold ETF NFO with a minimum application amount of Rs 500, and subsequent investments can be made in multiples of Re 1. There is no exit load for this scheme.
The fund, which tracks domestic gold prices, will be available for trading on NSE and BSE, offering investors the opportunity to buy and sell units on stock exchanges.
The 360 ONE Gold ETF will allocate funds to a wide range of assets including gold and gold-related instruments, debt and money market instruments, commercial paper, repo of government securities, treasury bills (T-Bills), tri-party repo (TREPS), securities issued by governments, non-convertible debentures, floating rate debt instruments, short-term deposits, exchange-traded commodity derivatives (ETCDs) with gold as the underlying asset, derivatives, and mutual fund scheme units.
The NAV will be updated daily on AMFI and fund house websites, with indicative NAVs (iNAV) accessible on stock exchange platforms during trading hours, as per the fund house.
The units will be listed on stock exchanges to ensure liquidity in the secondary market. These units can be traded on all trading days on the NSE, BSE, or any other stock exchange where the scheme is listed.
Gold ETF performance
In the past year, Gold ETFs have provided returns of up to 40%, with an average return of approximately 38.24%. During this period, UTI Gold ETF yielded the highest return of around 39.75%, while LIC MF Gold ETF offered a return of 39.17%.
HDFC Gold ETF and Kotak Gold ETF generated returns of 38.90% and 38.87% respectively. Similarly, Axis Gold ETF and Aditya Birla SL Gold ETF delivered returns of approximately 38.41% and 38.11% respectively.
Nippon India ETF Gold BeES, the largest scheme in this category based on assets managed, provided a return of 37.98% during the same time period. Additionally, DSP Gold ETF yielded a return of 37.87%.
According to data released by the Association of Mutual Funds in India (AMFI) this week, there was a remarkable 486% surge in net inflows into Gold ETFs, rising from Rs 640 crore in December 2024 to a record-breaking Rs 3,751 crore in January 2025. Additionally, the net assets under management (AUM) for Gold ETFs saw a 16.2% increase, climbing from Rs 44,595 crore in December to Rs 51,839 crore in January. The number of folios also saw growth, reaching 6.5 million during this period.