Axis Gold Fund, HDFC Gold Fund, SBI Gold Fund, ICICI Prudential Regular Gold Savings Fund, Kotak Gold Fund, Nippon India Gold Savings Fund, Aditya Birla Sun Life Gold Fund and Invesco India Gold Fund. The best mid-cap funds: the 15 best mid-cap funds in India The best index funds: the 20 best index funds in India The 10 best Demat accounts in India (202) How to apply for an instant personal loan of $15,000? Most investors prefer the Systematic Investment Plan (SIP), as it is very affordable. You can start an SIP in gold mutual funds with just 100 rupees a month. By using the potential of gold as a commodity, managers intend to create wealth through gold mutual funds.
Alternatively, if you don't want to buy gold fund units directly from the asset management company, you can use a demo account and a trading account to buy listed units from the Gold Fund on the stock exchange. Gold funds are based on instruments that are directly related to gold prices and invest in gold ingots. But did you know that jewelers charge 15 to 18% interest on these loans? Instead, you can easily apply for a loan with your gold mutual fund units at a lower interest rate, from 6% to 8%. The fund manager only buys gold with a purity of 99.5% and a certificate of authenticity from the World Gold Council is issued with each unit of physical gold.
In fact, except for Nippon India's Gold BEE ETF and the SBI Gold ETF, there is very little liquidity in other ETFs. Gold funds invest in various forms of gold, including physical products and the shares of gold mining companies. Capital gains derived from the repayment of gold mutual funds are subject to the same taxes as gold jewelry. Therefore, you end up paying double fund management fees: one to the gold mutual fund manager and one to the gold ETF manager.
The gold mutual fund offers the double benefit of professional portfolio management and of having physical gold. As the price of domestic gold rises, the price of gold stored in vaults will also automatically increase. Gold funds are a type of investment in digital gold that offers several advantages over investments in physical gold. Therefore, any increase or decrease in the price of physical gold leads to a change in the value of the Gold Fund's investments.