Gold Fund a safe haven for keen investors

Investing in Gold has been fashionable since ages in India. The method of investing in Gold however has seen some changes. Taking exposure to Gold via mutual funds is now widely accepted as a safe mode of investing in Gold.

Gold funds' performance has been good for past one year owing to rising Gold prices. SBI Gold Fund is one such open ended fund that invests predominantly in the units of SBI Gold Exchange Traded Scheme (SBI GETS). The SBI Gold Fund scheme seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS). The scheme objective is to mimic the gold returns.

Investing in Gold Fund is a cost effective way of taking exposure to Gold. The investors however will be bearing the recurring expenses of the scheme in addition to the expenses of the underlying scheme i.e SBI GETS.

Raviprakash Sharma is the fund manager for the SBI Gold Fund. The fund has delivered 14.2 per cent returns over a 1 year period, thus outperforming equity market index. However over past three years the funds has delivered negative 2.1 per cent returns.

Investing in Gold Fund can be a rewarding experience as it is not only cost efficient but also tax efficient and the investment can be done under systematic investment plan.