Introduction to Gold Mutual Funds
Investing in gold may sound like an old concept, but it is relatively new and has gained popularity in the past few decades. Gold is one of the most valuable precious metals globally, and even if its price may rise or fall, it will never go to zero. When other asset classes and the economy take a downturn, gold investments are considered a protective cushion.Gold has always been a popular investment option in India. It is considered a safe haven asset that provides stability to an investment portfolio. Gold mutual funds are a great way to invest in gold without the hassle of buying and storing physical gold. In this blog, we will discuss the top gold mutual funds for diversification in India.
1. SBI Gold Fund
SBI Gold Fund is a popular gold mutual fund in India. It invests in physical gold and aims to provide returns that closely track the domestic price of gold. The fund has a low expense ratio and has consistently delivered good returns over the years.
2. HDFC Gold Fund
HDFC Gold Fund is another popular gold mutual fund in India. It invests in physical gold and aims to provide returns that closely track the domestic price of gold. The fund has a low expense ratio and has consistently delivered good returns over the years.
3. ICICI Prudential Regular Gold Savings Fund
ICICI Prudential Regular Gold Savings Fund is a unique gold mutual fund that allows investors to invest in gold in small amounts through a systematic investment plan (SIP). The fund invests in physical gold and aims to provide returns that closely track the domestic price of gold.
4. Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund is a popular gold mutual fund in India. It invests in physical gold and aims to provide returns that closely track the domestic price of gold. The fund has a low expense ratio and has consistently delivered good returns over the years.
5. Axis Gold Fund
Axis Gold Fund is a popular gold mutual fund in India. It invests in physical gold and aims to provide returns that closely track the domestic price of gold. The fund has a low expense ratio and has consistently delivered good returns over the years.
Investing in gold mutual funds is a great way to diversify your investment portfolio and provide stability to it. These top gold mutual funds in India have consistently delivered good returns over the years and are a great investment option for investors looking to invest in gold.
However, insufficient research regarding the counterparty, the investment manager, or the assets can lead to heavy losses. As with any investment, investors should carefully consider their investment objectives and risk tolerance before investing in gold mutual funds. A long-term hold of 10%-15% of your entire investment in gold with minimal to moderate risk can yield a good return.
