Gold mutual funds are nothing but Gold Fund of Funds(FoF) or Gold Savings Funds which invests in Gold ETF. Gold FoFs will have an additional 0.5 to 1.25% expenses per annum on top of Gold ETF. The return of Gold mutual funds are also directly proportionate to the gold price in the market but with an extra expense of Gold ETF & Gold FoF expenses per annum i.e. max 2.25% per annum. If you still compare this with owning of gold coins or ornaments the return is safer and transparent in terms of value of Gold
If you are looking for buying gold without the overhead of making changes and wastages (associated with ornaments), Gold ETF is the right option.
Gold mutual fund would also invest in companies that are involved in the extraction of gold from the mines etc. The returns of Gold mutual funds have been bad in recent times
Gold FOF mutual funds invests money in Gold ETF(usually belonging to its own fund house). But Gold ETF buys the gold in the commodity market & it has its own custodian for physical gold.
Gold ETFs can be bought only if you have demat account as they are listed in stock market. For opening Gold FoF you need not have to have any demat account, you can buy directly from any mutual fund houses or through any mf agents.
Gold ETF expense ratio would be less than 1.5%. Even Gold FoF has its own expense ratio below 1% but this will add on top of Gold ETF expense ratio.
In summary if you have demat account buy Gold ETF in open market or else buy Gold FoF through MF houses. You can buy either Quantum Gold ETF or Quantum Gold Savings fund based on your requiremen
If you are looking for buying gold without the overhead of making changes and wastages (associated with ornaments), Gold ETF is the right option.
Gold mutual fund would also invest in companies that are involved in the extraction of gold from the mines etc. The returns of Gold mutual funds have been bad in recent times
Gold FOF mutual funds invests money in Gold ETF(usually belonging to its own fund house). But Gold ETF buys the gold in the commodity market & it has its own custodian for physical gold.
Gold ETFs can be bought only if you have demat account as they are listed in stock market. For opening Gold FoF you need not have to have any demat account, you can buy directly from any mutual fund houses or through any mf agents.
Gold ETF expense ratio would be less than 1.5%. Even Gold FoF has its own expense ratio below 1% but this will add on top of Gold ETF expense ratio.
In summary if you have demat account buy Gold ETF in open market or else buy Gold FoF through MF houses. You can buy either Quantum Gold ETF or Quantum Gold Savings fund based on your requiremen
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