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Investment in gold fund

Rahul Walame (Chartered Accountant) (580 Points)

19 December 2012

I AM A NEW INVESTOR AND I WISH TO INVEST IN GOLD FUNDS(NOT ETFs) IS IT THE RIGHT TIME TO INVEST AS THE PRICES OF GOLD ARE FALLING.AND WHICH IS THE RIGHT FUND HOUSE TO INVEST BSL OR RELIANCE.WHETHER I NEED TO HAVE A PAN CARD FOR IT.?PLEASE GUIDE ME.

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6 Replies

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 19 December 2012

You are not asking clearly.. I think you are telling about mutual fund..

In this case Reliance is the best.. and ya Pan is required.. for the purpose of registration of KYC.

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Garvit Dave (Portfolio Analyst & Tax Consultant) (295 Points)
Replied 20 December 2012

Rahul Walame

Gold should continue to do well for some more time. Considering that gold has already run up reasonably, I would suggest investing in gold, in a systematic basis. You can do it through SIP in a gold mutual fund.

Performance - Gold Saving Mutual Fund
Funds	RETURNS (%)
Funds	Rating	1Y	3Y	5Y
DSPBR World Gold Reg	0Unrated	(4.16)	6.46	8.07
HDFC Gold	0Unrated	13.27	--	--
Reliance Gold Savings	0Unrated	12.78	--	--
SBI Gold	0Unrated	12.71	--	--

Documents required- yes, Pan is required for any kind of market investment { KYC purpose}

Rahul Walame (Chartered Accountant) (580 Points)
Replied 20 December 2012

THANK YOU AL FOR GUIDING ME.BUT I SEE THE RELIANCE NAVS HAVE HIGH DEVIATIONS.

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 19 February 2013

Stock Market has lead to tendency of many to go in for much safer investments that gives a reasonable return. This is the reason for gold gaining popularity as one of the safest avenues for investment.

https://holisticinvestment.in/gold-etf

Regards

Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

Phone: 044-42030722

indiactwo (B.Com) (38 Points)
Replied 04 March 2013

Its good to invest in mutual funds as A mutual fund, by its very nature, is diversified—its assets are invested in many different securities. You can check out DSP Blackrock online to get some helpful information and financial advice on your investment.

CFP certification

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CS Sandip Rahane (CS & Legal ) (368 Points)
Replied 20 March 2013

Gold is Safe haven investment in the World and India has a consumption story of Gold.

Rather than investing in gold fund you can invest in E-Gold on the platform of National Spot Exchange. Following are the some benefits :

1) It involves no management costs or other recurring expenses.

2) The product is a lot more cost-effective for people who have a long investment horizon

3) charges involved are a one-time transaction fee of 2-3 paisa per gram and a brokerage fee of 0.2-0.3%.

4) E-gold can be converted into physical gold for quantities as small as 8 gm, while gold ETFs offer the option of physical delivery but only for a denomination of over a kilogram.

5)Besides, the delivery centres of the National Spot Exchange are located in 15 cities, while ETFs have only one delivery centre in Mumbai.

6) E-gold can also be directly converted into jewellery through select, reputed jewellers that conform with the purity and transparency guidelines. The investor only has to pay for the making charges. The National Spot Exchange aims to bring all branded jewellers under its umbrella of empanelled jewellers within a year.

7) e-gold directly tracks the domestic, physical gold prices, gold ETF only mirrors them. Certain gold ETFs have the flexibility to invest up to 10% of the total net assets in money market instruments and this can lead to tracking error. Some ETF companies also invest in gold futures and in a basket of gold mining companies.

8) One can trade in gold ETFs only till 3.30 p.m., while e-gold can be traded till 11.30 p.m., providing the investors greater flexibility and global cues while trading in gold domestically.