The gold fund unlike gold ETFs (exchange-traded funds) doesn’t require subscribers to have a demat account and gives them an option to invest as little as Rs 100 per month.
@Ajay
Investor should be wary about the dual recurring charges – total 1.5% (Fund-0.5% and underlying ETF-1%). Being a passive investment, i found the charges on the higher side. Try not to have more than 10% gold investment in the total portfolio.
Its an innovative product from a Mutual Fund company’s perspective but it is expensive and pushes risk onto people who may not fully understand it.
I am curious to see what is the money they collect. I would be surprised if its a large sum because target customers cannot be reached the traditional way of advertising + “financial planners”
Hi Jagdees,
The gold fund unlike gold ETFs (exchange-traded funds) doesn’t require subscribers to have a demat account and gives them an option to invest as little as Rs 100 per month.
Regards,
Online Support Team
Reliance Mutual Fund
@Ajay
You can get the detailed discussion of costs at
http://blog.fundsindia.com/gold-etf-vs-reliance-gold-fund-a-cost-compari
Mr. Srikant discusses about its various aspects.
Neelesh
Please refer to my blog post in this regard for a cost comparison – http://blog.fundsindia.com
thanks,
Srikanth
Hi Friends,
I agree with thought of Srikanth – I think it’s very expensive for long term investor
http://www.tflindia.in/2011/02/reliance-gold-savings-fund-review-invest.html
@Ajay
Investor should be wary about the dual recurring charges – total 1.5% (Fund-0.5% and underlying ETF-1%). Being a passive investment, i found the charges on the higher side. Try not to have more than 10% gold investment in the total portfolio.
Regards
Jagadees
Its an innovative product from a Mutual Fund company’s perspective but it is expensive and pushes risk onto people who may not fully understand it.
I am curious to see what is the money they collect. I would be surprised if its a large sum because target customers cannot be reached the traditional way of advertising + “financial planners”
http://www.moneylife.in/article/reliance-gold-savings-fund-has-a-strange-target-group/14050.html#comment-10553%23comment-10554