Gold is seen as a symbol of security and a sign of prosperity. Indians regard gold jewellery as an investment and are well aware of gold’s benefits as a store of value. Gold is also recognized as a form of money in India, a tradable liquid asset.But now increasing rates of Gold has make it more like a good investment avenue.
It is one of the foundation assets for Indian households and a means to accumulate wealth from a long term perspective. Gold investment has been in the culture of Indian tradition and has been on rise amongst the modern investors as well due to the financial uncertainty and inflationary pressures.
Increasing rate of Gold has made Gold out of reach of many buyers, so in order to boost investments in Gold many AMC's are launching Gold saving funds, Gold ETF's with SIP options.
Anil Ambani group firm Reliance Mutual Fund launched a new Gold Savings Fund, a first-of -its-kind investment scheme focused on gold, to tap a market that it expects to become bigger than even equity mutual funds.
The new fund, which is different from gold ETFs (Exchange Traded Funds) that require subscribers to have a demat account, will also offer investors the option to invest as little as Rs 100 per month, the company said here.
The company said that its Reliance Gold Savings Fund will enable investments in gold without any locker or demat account -- a first in the country.
NOt only Reliance, but KOtal Mahindra also have launched Gold ETFs, main purpose of these GOld saving funds is to generate revenue for Gold Fund of Funds.
A "Gold Savings Fund" (also known as a "Gold Fund") is generally Fund of Fund (FoF) scheme which invests its corpus into an underlying Gold ETFs and benchmarks its performance against the physical prices of gold. Hence by doing so, it attempts to provide returns that closely correspond to the returns of its underlying Gold ETFs.
Gold is really a precious asset class to invest especially in current global unstability.
However, there is one concern with Gold Saving Funds and that is double charges.
i.e when someone invests in Gold Saving Funds, the charges doubles. This is because its Gold FoF.
So the investor will not only pay the Fund management charge of Gold Saving Funds but also pay the charges for those Gold ETFs in which Gold Saving funds invest.
It is one of the foundation assets for Indian households and a means to accumulate wealth from a long term perspective. Gold investment has been in the culture of Indian tradition and has been on rise amongst the modern investors as well due to the financial uncertainty and inflationary pressures.
Increasing rate of Gold has made Gold out of reach of many buyers, so in order to boost investments in Gold many AMC's are launching Gold saving funds, Gold ETF's with SIP options.
Anil Ambani group firm Reliance Mutual Fund launched a new Gold Savings Fund, a first-of -its-kind investment scheme focused on gold, to tap a market that it expects to become bigger than even equity mutual funds.
The new fund, which is different from gold ETFs (Exchange Traded Funds) that require subscribers to have a demat account, will also offer investors the option to invest as little as Rs 100 per month, the company said here.
The company said that its Reliance Gold Savings Fund will enable investments in gold without any locker or demat account -- a first in the country.
NOt only Reliance, but KOtal Mahindra also have launched Gold ETFs, main purpose of these GOld saving funds is to generate revenue for Gold Fund of Funds.
A "Gold Savings Fund" (also known as a "Gold Fund") is generally Fund of Fund (FoF) scheme which invests its corpus into an underlying Gold ETFs and benchmarks its performance against the physical prices of gold. Hence by doing so, it attempts to provide returns that closely correspond to the returns of its underlying Gold ETFs.
Gold is really a precious asset class to invest especially in current global unstability.
However, there is one concern with Gold Saving Funds and that is double charges.
i.e when someone invests in Gold Saving Funds, the charges doubles. This is because its Gold FoF.
So the investor will not only pay the Fund management charge of Gold Saving Funds but also pay the charges for those Gold ETFs in which Gold Saving funds invest.
Yes, an investor investing in gold savings fund will have to bear both the charges, the fund management charge as well as the charge of the gold ETFs. But in return, a gold savings fund would enable you to enroll for SIP. Hence, in the long run the impact of the charges will be very negligible.
Read more information on Gold Saving Funds
No comments:
Post a Comment