Once the market normalises and the scheme can buy/sell physical gold as per its requirements, the corresponding ETCDs are expected to be unwound
HDFC Mutual Fund plans to use exchange-traded commodity derivatives (ETCD) platform to buy or sell gold under its Gold Exchange Traded Fund in case of a shortage in physical gold availability.
Through a notice-cum-addendum, the fund house has made a change in fundamental attributes of the HDFC Gold ETF to invest in ETCD sparingly in case of shortage in gold.
Investment in ETCDs will only be considered in rare circumstances where the scheme is unable to buy/sell physical gold due to temporary scarcity, it said.
Once the market normalises and the scheme can buy/sell physical gold as per its requirements, the corresponding ETCDs are expected to be unwound, it added.
The scheme does not intend to use ETCDs as part of the scheme’s day-to-day strategy, said HDFC MF.
The core approach of the scheme remains unchanged to invest in physical gold to the maximum extent possible and the balance will be in cash/net current assets, as per the Scheme’s Asset Allocation.
The scheme held 15,262 kg physical gold bars with purity of 99.5 per cent fineness, representing 98.65 per cent of scheme assets. Cash, cash equivalents and net current assets accounted for 1.35 per cent of Scheme Assets as of February-end, said HDFC MF.
Published on March 24, 2026
