POSTED BY April 25, 2012 12:56 pm COMMENTS (7)ON
I want to invest in Gold Saving fund.
Can anyone suggest which are the companies in this sector.
Also what is difference between Divided Gold saving fund , Dividend Re-Investment Gold saving fund & Growth Gold saving fund.
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7 replies on this article “What is Gold Saving Fund”
This has been discussed already at the following link. Please feel free to ask further questions if it doesn’t answer all your queries.
Dividend Option – Gives the returns in the form of cash payouts on a regular basis;
Growth Option – Doesn’t give any dividend. Returns are reflected in the form of higher NAVs;
Dividend Reinv – Sits between Div & Growth option, whereby the dividend declared by the MF house is reinvested into the fund.
You may want to refer to the http://localhost/jagoforum2/gold-etf-3/3367/ where it has been discussed.
Gold Saving Funds invest into Gold ETF. Hence in order to understand what Gold Saving Fund is, you also need to understand Gold ETFs and ETFs.
Dividend Fund – provide investors regular incomes by cash distribution. This reduces the value of their investment and resulting reduction is passed on to investors as cash;
Dividend Re-inv – instead of providing the investors the income in cash, it is again invested in the fund;
Growth – No dividend is provided to the investors. The appreciation in the investment is reflected by a higher NAV.
So which are the company which offers this scheme..
Every Company which as a Gold ETF these days are offering Gold Savings Fund. For example, Reliance Gold Savings, HDFC Gold Fund, Birla, etc.
Dear Monil, May I ask, why do you want to invest in Gold saving funds at all? Is it due to personal requirement or for that ‘me too want to invest as every body is investing’?
I want to as i would get married in next 5 – 6 years So some SIP saving in Gold…
Dear Monil, a better alternative ‘ll be to invest in Gold ETF if you do have Demat account. Due dual FMC, your actual return from Gold saving funds ‘ll be lower than your expectation.