Gold Funds: These gold funds gave 18-19% return in 1 year, best way to invest in gold

Best Gold Mutual Funds :Gold Mutual Funds are a modern way of investing in gold, which has many advantages over physical gold. Gold funds are a type of mutual fund that invests directly or indirectly in gold reserves. Investments are usually made in gold producing and distributing syndicates, stocks of physical gold and stocks of mining companies. It is a convenient way to invest in an asset without buying a commodity in its physical form.

Amazing scheme: This mutual fund made Rs 3000 SIP into Rs 9.5 crore, track record of 23% CAGR in 28 years

How does a gold fund work?

Gold mutual funds are open-ended investments based on units offered by gold exchange traded funds. Since the underlying asset is held in the form of physical gold, its value directly depends on the price of this precious metal.

These funds can also be used as a hedge to protect an investor from economic shocks. Many investors may diversify their investment portfolio with 10% to 20% investments in gold funds as a means of protecting themselves from a fluctuating market.

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Best Gold Funds with Best Returns in 1 Year

SBI Gold Fund: 19.05%
Quantum Gold Fund: 18.77%
HDFC Gold Fund: 18.67%
Axis Gold Fund: 18.53 percent
ABSL Gold Fund: 18.53%
ICICI Pru Regular Gold Savings Fund: 18.29%

(Source: Value Research)

What is the purpose of investing in gold funds?

The primary objective of investing in gold mutual funds is wealth creation during the investment period and to provide protection against market downturns. Due to the varying prices of gold, the performance of its underlying stocks often varies greatly. For example, even a small change in the global market price of gold can cause a large change in the returns of its stock. The returns of the best gold funds can be even higher than the actual price of the yellow metal, creating an attractive opportunity for investors.

LIC Mutual Fund’s best scheme, monthly SIP of Rs 10000 turned into 1 crore in 20 years

Who should invest (Who Should Invest in Gold Funds)

Gold mutual funds are an ideal option for investors who want to diversify their portfolio and reduce investment risk. It is regulated by SEBI, which reduces the risk associated with investing in mutual funds. The fund is invested in gold bullion, a physical asset that is mostly independent of the fluctuating financial markets. Investors can also opt for gold funds with the intention of saving tax. TDS is not applicable on this type of investment, instead only the tax applicable on buying and selling jewellery is levied on these funds.

What are the advantages (Advantage of Gold Funds)

Flexibility to buy funds of any amount; you can invest in it with a minimum of Rs 500.

Safe investment option as compared to physical gold, no fear of losing or breaking.

This is a highly liquid option, you can buy or sell whenever you want.

Being regulated by SEBI, it is a safe investment option.

Investing in gold funds diversifies your portfolio.