Be the Shine and Purity as rich as Gold-Have you ever wondered why Gold-a precious soft shimmery metal has continued to cast its spell to be a pride asset among millions of households for centuries together across the globe with its auspicious, religious, cultural or gift value and how it does benefit the proud owners namely banks, governments and gold producing industries more than just playing the role of jewelry or artifact? Let’s take a further look at what more can we achieve by utilizing this weapon in our investment portfolio.
Gold-A form of investment Fund /Hedge Fund Strategy:
Gold not only means a simple purchase for enhancing beauty appearance
or of sentimental importance but also considered as one of the modes for
investment fund we can keep in our portfolio basket to serve many advantages such as;
• A stable investment return to suit the needs of short to medium term of investment strategies.
• Industrial or commercial use.
• A safe-haven to combat from unexpected financial or economic or stock market collapse.
• Ease with liquidity or conversion into immediate cash.
• Cushions as a hedge fund against possible downfall in currency price, inflation or to offset losses arising out of other alternative asset allocations.
• Less risk from threats like burglary, theft, etc.
Gold- as Gold Fund ETF
Another Inexpensive form of gold fund investment would be Gold ETF which stands for Exchange Traded Funds- a substitute for physical gold, which is an open-ended mutual fund scheme that are traded on stock market exchanges by investors in form of ETF Gold units to get a return from the invest made into gold and its bullion companies(Examples would be Kotak Gold ETF, UTI Gold ETF). This type of gold fund gives an edge over various kind of funds by being;
• A paper gold via electronic mode which is affordable and yields more profit than other forms of stock market trades.
• Safe and easy to buy through paperwork gaining access to a demat account.
• Convenient option as a small amount of investment with no or sometimes minimum premium charges unlike high jewelry making fee and other interest charges.
• Less maintenance charge to keep a track on gold funds.
• Resale value is much more in comparison to store buyers and banks.
• No fluctuation in gold fund irrespective of price change seen in the price of gold.
• Quality concerning purity of gold is up to highest standards.
• Does not require a demat account to invest.
Gold- as a Gold fund of fund schemes
Nothing much to be explained on this concept, except for the fact that as the name would suggest, Gold fund of funds (FOF) is a type of mutual fund scheme which grabs the investor’s attention to purchase units of Gold ETF with the benefits as described below:
• Without any hassle to open a demat account.
• Physical subscription required.
• With easy liquidity for redemption and less cost having zero charges for brokerage/ commission fee and demat account opening fee.
To conclude gold funds is one amongst the various secure, cost-effective, tax benefit strategy to bank on with the intent to diversify your portfolio to gain a stable return on investment by careful consideration of pros and cons using an individual sense of justice.