Gold Mutual Fund

Eshaan Chauhan


Gold Mutual Funds

A few days back we spoke about Managing personal finances, and one of the points was an investment. So next we had covered Mutual funds. Today we will discuss a different aspect of Mutual Funds.

Mutual Funds are trending these days, but what might be new is Gold Mutual Fund.

No, Mutual Fund companies are not selling gold ;), but they are surely investing in gold on your behalf; and that is what Gold Mutual Funds are. An investment that directly or indirectly invests in gold reserves like physical gold, stocks of mining companies etc.

You would be wondering, how is this an advantage over normal Mutual Funds.

Advantages of Gold Mutual Funds

One of the main purposes of this type of investment is to create a cushion against a market crash. As you may know, a stock market crash usually causes an increase in gold price due to the negative correlation between stock price and precious metals. These are open-ended investments and a good choice when you want to lower the risk of investment.

You can invest an amount as low as Rs. 500, which makes this a convenient option than actually buying gold. Since it is regulated by SEBI, it lowers the risk associated with investing in a mutual fund.

Axis, SBI, HDFC, Kotak, and IDBI are the current top 5 gold funds. So, do think about investing in Gold Mutual Funds without actually owning the physical gold!