Gold Funds

Unlike physical gold, which requires secure storage and insurance, the investors of gold funds need not be concerned about the security of their holdings. This simplicity makes gold ETFs an appealing alternative for individuals looking to gain exposure to gold without the logistical obstacles.

SEBI regulates gold mutual funds in India. Gold fund pricing is dependent on the current market value of gold. This transparency guarantees that investors get fair and accurate prices for their assets. Additionally, it enables investors to readily track the success of their gold assets.

Investing in gold funds allows investors to diversify their financial portfolios. Gold frequently acts differently than equities and bonds, acting as a buffer against market volatility. This diversity can assist to mitigate overall investment risk.

Investing in gold ETFs is frequently more cost-effective than acquiring actual gold. In comparison to purchasing and holding real gold, gold funds often offer cheaper transaction and maintenance fees. This cost-effectiveness improves total returns for investors.

Gold funds are highly liquid, allowing investors to readily acquire and sell their holdings. This is especially useful during periods of market volatility, when rapid choices may be required. Investors can convert their gold fund units into cash without encountering the difficulties connected with real gold.

Depending on the jurisdiction, various gold funds may provide tax advantages. Investors should look into the tax consequences of gold ETFs in their respective jurisdiction. Some countries may offer tax breaks for gold investments, increasing the overall appeal of gold funds.

You should consider what and how much you want to achieve from your investment. Your investment horizon will also play a key role in making an investment decision.

The expense ratio and the exit load are the costs which you must consider while investing in gold funds.

If you want to diversify your portfolio and hedge yourself against market volatility, then investing in gold funds can be a good choice.

Short or long-term capital gains tax will be charged on your returns depending on how long you stay invested. Your tax slab rate will be applicable in case of short-term capital gains tax. In the case of long-term capital gains tax, 20% will be charged.

You should track the past performance of different gold funds to check which option is the best investment option for you.

The track record of the fund manager will tell you whether the gold fund is in the right hands.

Download the INDmoney app and create your free investment account by completing your KYC ( Know Your Customer).

Once your Free investment account is ready, you can either search for Gold Funds or go to the mutual fund section and tap on Gold Funds from the Collections Section. 

Choose a Gold Fund by looking at aspects like past returns, volatility, downside capture ratio, AUM, Expense ratios and underlying stocks and sectors.

You can choose to set up SIP in GoldFunds or even invest as lumpSum. Once you are on the individual Gold Funds page click from the bottom “One-time” for lump sum investment or “SIP” for systematic investment plan. 

Choose the amount that you want to invest as SIP or LumpSum.

Set up payments. If you choose to set up SIP in Gold Funds,  you can do a free automatic pay set up via bank mandate or UPI. If you choose to invest in lumpsum (one-time) then you can pay via UPI, netbanking, NEFT or RTGS.