What is the benefit of gold mutual fund?
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What is the benefit of gold mutual fund?
Gold funds are open-ended funds which invest in units of a Gold Exchange Traded Fund (ETF). The primary aim of gold funds is to create wealth by making use of the potential of gold as a commodity. It is suitable for investors who have a desire to take exposure to gold.
Is gold funds a good investment?
However gold mutual fund investors flourished. Gold jumped from Rs 35,220 in 2019 to Rs 48,651 in 2020. That’s an absolute growth of 38.10\% in just one year….Top 5 Gold Mutual Funds in India for 2021.
| Top Gold Mutual Funds in 2021 | Quantum Gold Savings Fund |
|---|---|
| 1-Year | -1.68\% |
| 3-Years | 14.79\% |
| 5-Years | 8.07\% |
| Since Inception | 6.55\% |
Is it better to invest in gold or mutual funds?
Gold investment or mutual funds allocation depends on the risk tolerance of the investor. It is usually true that gold does not offer equity-like returns. Therefore, as an investor mutual funds offer better returns in the long term as they are market-linked.
Which is better gold or SIP?
As per the investment experts, for those salaried investors who are in the nascent phase of their investment, SIP is the most preferred option provided the investment is for long-term. Nowadays, Gold Funds and Gold ETF is also available in the SIP mode and it is also gaining traction among the investors.
Which is better to invest in gold?
Considering the performance of gold rates, gold ETF is a better option to invest in gold instead of physical gold, if you are talking of some real profitable returns. Some of the popular gold ETFs in India is INVESCO India Gold ETF, Kotak Gold ETF, SBI gold ETF etc.
What is SBI Gold Fund?
1. The Current Net Asset Value of the SBI Gold Fund as of 24 Dec 2021 is Rs 14.7555 for Growth option of its Regular plan. The SBI Gold Fund currently holds Assets under Management worth of Rs 1197.96 crore as on Oct 31, 2021. 4. The expense ratio of the fund is 0.52\% for Regular plan as on Oct 31, 2021.
What are the benefits of investing in gold mutual funds?
The long term capital gains from the fund, on the other hand, attract the benefit of indexation and are taxed at the rate of 20\% (including relevant cess). There are a number of benefits that gold mutual funds offer over physical gold. Some of them are listed below.
How much is one unit of gold mutual fund equal to?
One unit of gold mutual fund is equal to one gram of physical gold. Gold mutual funds are highly popular during political instability or when the stock markets are falling. Since they invest in gold ETFs, gold mutual funds are highly liquid. Source: www.rankMF.com *Data as on 7th July 2021.
Which are the best gold mutual funds in India?
As expected, gold mutual funds also joined the rally. Nippon India Gold Savings Fund is one of the best gold mutual funds in India. It generated a return of 39.44\% between February and August 2020. Such a rally in gold was last seen during the 2008 financial crisis.
What are the tax implications of investing in gold?
Gains on gold funds are taxable on the basis of the holding period of the investment. Investments with holding period less than 36 months, are taxable at the investor’s income tax slab rate. For more than 36 months, then they are taxable at 20.8\% (including cess) with indexation benefits.