Invest in Gold through Mutual Fund and diversify your investment portfolio!
Gold has unique properties as an asset class. Modest allocations can diversify and enhance the performance of an investment portfolio. Investors of all levels of experience are attracted to gold as a solid, tangible and long-term store of value that historically has moved independently of other assets. Gold Funds can be used in portfolios to shield global purchasing power, reduce portfolio volatility and may minimise losses during periods of market shock. It can serve as a high-quality, liquid asset to be used when selling other assets would cause losses.
Investment in Gold Fund.
Via mutual fund route investment in gold funds can be done through two options:
Gold Exchange Traded Fund-Gold ETFs are passively managed funds which endeavors to track and provide similar returns to its benchmark- the domestic prices of gold, through investment in physical gold and money market instruments. Gold ETF is a smart and easy way to invest in Gold in a demat form.The fund Invests exclusively in physical gold which shall be of fineness (or purity) of 995 parts per 1000 (99.5 %) or higher.
Gold Savings Funds- Gold Saving Funds are Fund of Fund of Gold ETFs.
Benefits of Investing in Gold Via Mutual Funds.
Low cost : When you buy Gold funds you have to pay brokerage or other charges, which is usually much lower than paying for markup charges while buying physical gold.
Transparency: In Gold Funds the rates are transparent and therefore it provides the ability to buy and sell at correct prevailing prices. There is no consistency when you buy and sell physical gold across jewelers or banks.
Security:Unlike physical gold no concerns about security against theft. Safeguard in the form of electronic mode in the case of unforeseen circumstances.
Liquidity: An investor of Gold Fund can subscribe and redeem units on all business days directly from the AMC with much ease than liquidating the physical gold.
Ease of investing: Investing in gold through Gold Fund, the investor can directly subscribe/ redeem units through the physical mode at the various designated investor service centre across the country thereby making it easily accessible and convenient.
The information here in below is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Nippon India Anytime Money Card “The Card” provides instant access to underlying investments in schemes of Nippon India Mutual Fund along with cash withdrawal facility at ATM’s and shopping facility at VISA enabled merchant establishments. The facility of Nippon India Any Time Money Card is available only in select schemes of Nippon India Mutual Fund. The investors are also requested to read the relevant & applicable terms & conditions for the purposes of availing this facility. In case of dividend, Dividend Distribution Tax (as applicable) will be directly paid by the scheme and no tax is required to be paid by the investor. The NAV of the scheme, pursuant to payment of dividend would fall to the extent of payout and statutory levy, if any. For further details kindly refer the SID of the schemes
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.