Personal Finance Blog India –

Review of Reliance Gold Savings Fund:

Reliance Gold Savings Fund was the first kind of fund which allows investors in Gold through GOLD ETFs through mutual funds.

This fund was opened for fresh,new purchases 2 months back.

Uptill there was no facility available for SIP of Gold.

Objective of the fund is to generate similar kind of returns generated by physical gold by investing in Gold Etfs of Reliance Etf.

Latest NAV as on 29th july 2011 was : 11.1247.

Highest NAV offered by the find was:11.2235.

Current Net Asset of fund : 790 Crore.

Facility of SIP is available starting from Rs.100 per month.

Performance of the Fund as on 29th July  2011:

1. Since Inception:  11.25%.          Cateogary / Benchmark Returns: –

2.Last 1 Month : 5.21%                Cateogary / Benchmark Returns : 5.05%.

3.Last 3 months:4.39%              Cateogary / Benchmark Returns : 4.49%

Why you should invest in Gold Mutual fund:

1.Investors know the exact value of Gold purchased,capital gain or capital loss.

2.Easy liquidity: Units can be sold just by submitting the redemption form.

3.Though most of the investors owns Gold in physical form,no one might be interested to convert it in cash and makes it pathetic investment.Gold savings fund gives proper diversification to investors.

4.Currently, Gold prices are running at the highest level,so rather making any astrology of future prices,its better to invest in this fund by systematic way of investing.

5.Investing through Gold ETFs is economical only if you are an active share trader.Returns will be impacted by paying off Buy-Sell delivery brokerages,annual charges of demat account etc.

6.Gold is a commodity.Its unique.There is no alternative for any commodity.Price of any commodity can not become Zero(which is possible for any stock).There is certain lower price limit for any commodity as there are certain processing costs of the commodity.

7.Most of the brokers charge brokerage in between 0.5-1% for non-prepaid investors.It means that investors investing in Gold ETFs are paying 1% for ETFs + 1% for  buy-sell brokerage = 2%.  Isn’t Gold mutual funds are cheap which are charging maximum of 1.5% of expense ratio.

Category: Mutual Funds


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