Gold has been a popular investment option for Indian investors from the beginning. Gold is considered a safe investment, which guarantees better returns over the long term. Especially when there is economic uncertainty, gold becomes a safe haven. The way the price of gold has increased in the last few months, the trust of investors can also be seen clearly. Last month, gold reached a record high of 56200, after which its prices have come down by more than 4000 rupees. Experts are advising to take Nivea once again in gold from here.
In today’s era, instead of physical gold, investment in gold can be done in many ways. You can even invest in gold through mutual funds. There are many advantages to investing in paper gold like investors do not charge any fees or premiums. Apart from this, they do not have to worry about gold purity, storage and insurance. Here we are giving information about some options for investing in Sonne through mutual funds. These include gold funds, gold ETFs, multi-asset funds and international gold funds.
People’s craze for Gold Exchange Traded Fund (ETF) is increasing. 2007 Gold ETF debuted. It is an open-ended mutual fund, which is based on falling gold prices. Gold ETF gives investors exposure to the gold market. Investing in the long term also gives good returns. Investing in Gold ETFs is less volatile than investing in the stock market. The value of 1 gold ETF is equal to 1 gram of gold. Gold ETF does not have any problem regarding purity due to being in electronic form.
Advantages of Gold ETF
Gold ETFs can be purchased online through a demat account. You can buy and sell it whenever you want. You can also start a Gold ETF with 1 gram ie 1 Gold ETF. So it is easy to invest in it. Long-term capital gains have to be repaid on gold ETFs. Gold ETFs can also be used as security to take loans. On physical gold you have to pay the making charge. But this does not happen in Gold ETFs.
Gold mutual funds are open-ended investment products that invest in gold exchange-traded funds (Gold ETFs). Their net asset value is tied to the performance of ETFs. The demat count is not required for this. One can invest in it like any other mutual fund. Talking about the last one year, the Gold Fund has given bumper returns to the investors. There are many funds whose returns have been between 30 and 40 percent. Investment ratio has to be paid on investment in gold mutual funds. While some funds also carry an exit load. You can also invest in it through SIP. Investments of more than 3 years in gold mutual funds are considered long-term. SBI Gold Fund, Kotak Gold Fund, Axis Gold ETF Fund, Invesco India Gold Exchange Trade Fund are some of the better gold funds.
Multi-Asset Allocation Fund
Multi-asset allocation funds fall into the hybrid category. SEBI has changed the rules for asset allocation of multicap mutual funds. Under this, 75 percent investment in equity is required. However, fund houses can invest some money in the remaining 25 per cent. Most multi-asset funds have gold allocation. This helps in balancing the portfolio of an investor. Equity losses can be offset to some extent by gold.
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