Gold funds are joint investment vehicles that often take the form of mutual funds or exchange-traded funds (ETFs). In the case of mutual funds, the gold fund can be accessed through a financial institution, such as a commercial bank, while ETFs can be purchased directly on the stock exchange. In any case, gold funds offer investors a convenient way to expose themselves to gold without incurring the relatively high storage and insurance costs associated with directly owning physical gold bars. Although physical gold used to be the preferred option, gold mutual funds are clearly better in all aspects (except for ornamental purposes, where you have to buy physical gold), with benefits such as a minimum investment amount, diversification, no need for a Demat account, the growth of the SIP, etc.
Invesco India Gold Fund To provide a return that closely corresponds to the return provided by the Invesco India Gold Exchange Coded Fund. A gold ETF (exchange-traded fund) is an instrument that is based on the price of gold or that invests in gold bars. Below is key information from the Nippon India Gold Savings Fund Nippon India Gold Savings Fund Growth Release Date March 7 11 NAV (24 Nov 2) 2 20.9893 ↑ 0.13 (0.60%) Net Assets (Cr) 1,379 on October 31 22 Gold Category: GoldAMC Nippon Life Asset Management Ltd. To begin with, an investor may want to buy a gold fund with gold ingots or gold futures as a form of hedging against the risk that their purchasing power will be eroded by inflation.
Nippon India Gold Savings Fund The investment objective of the plan is to try to offer returns that closely correspond to the returns provided by Reliance ETF Gold BeE. Kotak Gold Fund The investment objective of the scheme is to generate returns by investing in units of the Kotak Gold Exchange Traded Fund. Aditya Birla Sun Life Gold Fund A variable capital fund plan with the investment objective of providing a return that tracks the returns provided by the Birla Sun Life Gold ETF (BSL Gold ETF). For these investors, owning a gold fund could help counter any possible fall in the USD, based on the premise that investors will turn to gold as a safe haven if the dollar starts to fall.
ICICI Prudential Regular Gold Savings Fund ICICI Prudential Regular Gold Savings Fund (the Plan) is a fund plan whose main objective is to generate returns by investing in units of the ICICI Prudential Gold Exchange Traded Fund (iPru Gold ETF). For this reason, investing in a gold fund that specializes in gold mining companies can be an attractive way to take advantage of any potential appreciation of gold. The two most common types of gold funds are those with physical gold ingots, gold futures contracts or gold mining companies. For example, a popular gold fund that invests directly in gold futures contracts is the SPDR Gold Trust (GLD).
Of course, the opposite is also true, since a fall in gold prices could cause a rapid decline in profit margins for gold mining companies. For those who want to invest in gold mining companies, a popular option is the VanEck Vectors Gold Miners (GDX) ETF.