Future of Gold Funds in India & beyond

Future of Gold Funds in India
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Gold has long been regarded as a stalwart investment, valued for its ability to retain worth and act as a reliable asset during market volatility. Investors in India have a plethora of options, ranging from physical assets like coins and bars to modern alternatives like Digital Gold, Gold Mutual Funds, ETFs, and Government Bonds. In this article, we will delve into gold funds & discuss the future of the asset given the rise of new alternative gold investment assets.

Understanding Gold Funds:

Gold Funds/Gold Mutual Funds serve as a category of investment funds holding assets related to gold. These funds can include diverse instruments linked to gold prices, such as physical gold and gold mining company stocks. Investing in Gold Mutual Funds provides exposure to gold’s price movements without the necessity of physical ownership, offering a convenient and paperless way to invest.

Top 5 Gold Mutual Funds in India for 2024:

  1. ICICI Prudential Regular Gold Savings (FOF) Direct-Growth: ~9.86%pa
  2. Axis Gold Direct Plan-Growth: ~10%pa
  3. Kotak Gold Fund Direct-Growth: ~9.66%pa
  4. SBI Gold Direct Plan-Growth: ~10%pa
  5. Aditya Birla Sun Life Gold Fund: ~10%pa

All of the above gold funds have provided 9-10% pa pretax. An expense ratio of ~1% is also charged when investing in gold funds. With the rise of financial innovations like gold leasing, investors are presented with newer alternatives of investing in gold. One such app providing the option of gold leasing is Gullak.

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Gold funds vs Gullak gold+:

In addition to traditional Gold Mutual Funds, Gullak Gold+ introduces a unique approach to maximise gold investments. Offering an extra 5% gold annually on top of the annual gold price appreciation of ~11% pa, Gullak Gold+ provides a remarkable 16% annual return. The added benefits of flexibility, accessibility, liquidity, and a 100% bank guarantee set Gold+ apart from conventional gold investment options.

Benefits of Gold+ Over Gold Funds:

–   Annual growth of gold grams, providing a tangible increase in asset quantity.

–   Highest returns on Gold in India, with a 16% annual return.

–   Flexibility and accessibility, allowing investments as low as 0.5 grams of gold.

–   Liquidity and convenience, enabling investors to withdraw anytime without penalties.

–   100% bank guarantee, ensuring the security of gold investments.

Conclusion:

As investors navigate the future of gold funds in India, the landscape offers a variety of options. Traditional Gold Mutual Funds continue to be strong contenders, but Gullak Gold+ introduces an innovative approach that promises higher returns, flexibility, and security. Whether choosing established Gold Mutual Funds or exploring the unique advantages of Gullak Gold+, the key is aligning investments with individual financial goals and risk tolerance. The future of gold funds in India is evolving, and strategic choices can unlock the full potential of the asset in investment portfolios.

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