Mutual Funds

Others Services

Gold Fund

Gold funds invest in Gold and gold related securities. They can be structured in either of the following formats:

Gold funds also know as Gold Savings funds invest in units of Gold exchange traded funds. Unlike gold ETF, gold funds make it possible for retail investors to transact in the units directly with the scheme, SIP is possible, and the investor do not need a demat account.

Gold Sector Funds invest in shares of companies engaged in Gold mining and processing. Though gold prices influence these shares, the prices of these shares are more closely linked to the profitability and gold reserves of the companies. therefore, NAV of these funds do not closely mirror gold prices.

Benefits of Gold Fund

The investor is not exposed to the risk of loss through theft or other contingencies. An investor does not need to spend on a locker or other security requirements. The investor does not have to worry about the purity of gold either.

Investors need not put in a huge amount of money, even a small investment of ₹100 in a scheme can give investors ownership of a portion of gold investment.

Demat Account is not required to invest in Gold Savings or sector funds.