April 8, 2011 11:39 pm
Is this the right time to buy gold/silver. How good is SIP through a gold etf. I want to buy gold for my daughter’s marriage may be 25 years from now. Are ETF SIP a good option or should i buy lump sum.
Here is an detailed analysis on gold from moneylife – http://www.moneylife.in/article/gold-all-told/15410.html……. even in jagoinvestor blog u can find a article on similar line about gold from Hemant beniwal…… decision is all yours.
@rajat and @ramesh
both the questions raised by ramesh, and as such , really any such question is difficult to answer. and i think, so the concept of ‘asset allocation’ helps. of course , it is differently for different person. i find , one such , suitable:
keep 6 months’ to 2 yrs’ expense as emergancy fund, then 80% in equity oriented fund and 20% in gold as hedge. the % age may differ as per liking.
really i am also in dilemma due to present conditions. i like to modify slightly:
the emergancy fund , if earmarked higher, i.e. towards 2 yrs’ rather than 6 months’ , could be divided 50%-50% between 1. liquid fund+listed bond+linked bank fd and 2. gold. the remaining be invested in diversified equity mfs. sip or adhoc depending upon availble asset and further saving capacitty.
1. Are you certain that your daughter will like to have gold ornaments 25 years in future? I dont really think, the future fashionable people will consider gold jewellery very high up in their list of demand.
2. Do you think investing the same amount in an equity oriented portfolio will fetch you a lesser return than investing in gold (that through 2 intermediaries – one the ETF and the other the MF holding the ETF)?
The answer to above 2 questions will provide the actual solution. 🙂
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