Wealth Company Gold ETF FOF NFO: Adding the glitter of gold for a diversified portfolio

Gold has been considered an auspicious commodity since time immemorial. In Indian culture gold is a symbol of purity, fortune and wealth. Apart from its cultural significance, the precious metal has immense importance as financial asset. In this article, we will review the Wealth Company Gold ETF FOF NFO which opened its subscription on 9^th January 2026. The NFO will close its subscription on 23^rd January 2026.

Current market context

The equity market is experiencing high volatility over the past few days. Continued FII selling, geo-political tensions and uncertainty about tariffs are headwinds for the market. On the debt side, the bond yields have surged despite bond purchases by the RBI, due to large supply of State Government debt. Precious metals on the other hand, continue to surge and make record highs.

Source: MCX spot prices, Advisorkhoj Research, as on 31^st December 2025

Why invest in gold?

• Asset class performance keeps changing: One of the very important tenets of investing is not to keep all your eggs in one basket. This simply means that for your portfolio should have a good mix of asset classes to weather any volatile situations in the equity markets. Gold, with its negative corelation to equity offers this much needed diversification to your portfolio.
  
  

  

  Source: NSE, MCX, Advisorkhoj Research, as on 31^st December 2025. Equity is represented by Nifty 50 TRI, Debt by Nifty 10 year Benchmark G-Sec Index, and Gold by MCX Spot prices.



• Historical data proves that gold shows negative corelation with equity (see the chart below), giving it a safe haven status. This may help reduce portfolio drawdowns during financial crises.
  
  

  

  Source: Bloomberg. Data till 9^th Dec. 2025. Nifty - Nifty 50 Index TRI; Debt - Crisil Short Term Bond Index; Gold -Domestic Prices of Gold (MCX India Gold Spot Index - 10gms). Rolling Returns calculated on daily basis. Correlation has been calculated from 1^st Jan 2006 till 30^th September 2025



• Improve portfolio risk adjusted returns: The charts below show the median and standard deviation of rolling returns for different tenures over the last 20 years. You can see that gold can provide superior risk / return trade-off compared to equities in the short to medium term.
  
  

  

  Source: MCX spot prices, NSE, Advisorkhoj Research, as on 31^st December 2025

Why has Gold Endured Across Market Cycles and is a Must in investor portfolios?

India remains one of the largest consumers of gold worldwide. Whether it's Akshaya Tritiya, Dhanteras, or a wedding celebration, gold continues to be an integral part of Indian life. As household incomes rise, the appetite for precious metals only grows stronger. Gold is a time-tested store of value. When inflation erodes the purchasing power of money, gold often shines. Historically, gold has delivered robust long-term appreciation while maintaining stability, when traditional assets like stocks or bonds face turbulence.

• Gold's long-term growth: Over the past 20 years, gold has multiplied many times over, consistently beating inflation. Gold prices surged nearly 17X from about Rs 7,400 per 10 grams in Nov 2005 to Rs 1.32 lakh per 10 grams in Dec 2025.


• Gold also acts as safe-haven asset, performing strongly during financial uncertainty. The limited supply of the precious metal coupled with the global demand makes it an ideal component of a balanced investment portfolio. Uncertainty is a constant - gold may hold value in such moments.
  
  

  

  Source: Advisorkhoj Research



• Currency movements are ongoing. Historically there has been an inverse correlation between the US Dollar and gold. As currency movements persist, gold may offer a hedge against such fluctuations. A weakening dollar can influence the market sentiment and affect returns for investors. So, when the dollar weakens, gold can add balance to a portfolio.
  
  

  

  Source: https://www.macrotrends.net/1335/dollar-vs-gold-comparison-last-ten-years. Data as on 17 Nov2025 *This chart compares the daily LBMA fix gold price with the daily closing price for the broad trade-weighted U.S. dollar index over the last 10 years

Why invest in Gold ETF FOF?

Instead of buying physical bullion-which involves storage costs and purity risks-investors can opt for investment into Gold Fund of Funds (FOFs) which invest in ETFs. A Gold ETF is an exchange-traded fund tracking domestic gold prices. They are passive investment instruments that are based on gold prices and invest in gold bullion. The gold invested in is 99.5% pure gold as per SEBI's requirements. Gold Fund of funds invest in Gold ETFs and come with transparent pricing, no making charges and the ease of investing through SIPs. Gold Fund of funds provide a cost-efficient, transparent, and convenient way to gain exposure to precious metals without opening a demat or trading account. The Gold FOFs offer a convenient option for investors who want to invest through SIPs and STPs and are easy to buy or redeem like any mutual fund.

Why is now a good time to invest in gold?

1. Global Central Bank Buying: Central banks worldwide have been increasing their gold reserves. If geopolitical tensions continue, EM purchases could accelerate, reinforcing structural support for gold.
   
   

   

   Source: IMF, respective central banks, World Gold Council. https://www.gold.org/ Data till 31 October 2025. SOFAZ represents the gold reserves of the State Oil Fund of Azerbaijan (SOFAZ).



2. Falling Interest Rates: Lower global interest rates often support higher gold prices, as investors seek alternatives to low-yield assets.


3. Geopolitical Tensions: Geo-political conflicts e.g. US military actions in Venezuela, instability in the Middle East etc drive investors toward safe-haven assets like gold.


4. Currency depreciation: Weakening rupee often prompts investors to purchase gold as a protective asset or safe haven and a hedge against currency fluctuations.

The Wealth Company Gold ETF FoF

The investment objective of the fund managers of The Wealth Company Gold ETF FOF is to generate long-term Capital appreciation from a portfolio created by investing in units of The Wealth Company Gold ETF. There is no assurance or guarantee that the investment objective of the scheme will be achived.

The fund is managed by Mr. Niranjan Das.

The investors are bearing the recurring expenses of The Wealth Company Gold ETF FoF , in addition to the expenses of The Wealth Company Gold ETF in which the Fund of Fund Scheme makes investments.

Why should you choose to invest in The Wealth Company Gold ETF FOF NFO?

The Wealth Company AMC is built on legacy backed by innovation focused on the future

• Backed by Pantomath Financial Services Group: India's leading financial services conglomerate spanning across merchant banking, private equity, broking & distribution, institutional equities, portfolio management and asset management.


• Backed by 40+ years of ACMIIL : Asit C. Mehta Investment Intermediaries - India's pioneering force in broking and financial innovation legacy.


• Fund Management Expertise -Research-driven, performance-focused, and innovation-led expertise across AIF and PMS.


• Visionary Leadership-Entrepreneurial founders with deep foresight and a proven track record of building scalable, future-ready platforms.

Who Should Invest in The Wealth Company Gold ETF FoF?

• Investors seeking portfolio diversification and stability.


• Those looking for inflation protection and wealth preservation.


• Individuals with long-term investment horizons.


• Investors who prefer digital, low-cost alternatives to physical gold.

Consult a mutual fund distributor or a financial advisor to help you determine your financial goals, risk tolerance, and investment horizon and find out if The Wealth Company Gold ETF FoF is suitable for your financial goals.