| With gold prices hovering around $1200 for last | | | | available in India. Benchmark Mutual Fund was the |
| couple of days, commodity analysts and market | | | | first Mutual Fund House to have lauched Gold |
| participants are eagerly watching whether it is able | | | | Exchange Traded Funds (NSE Symbol GOLDBEES) |
| to sustain the up move and scale further higher | | | | in India. Reliance (NSE Symbol RELGOLD), Kotak |
| highs. Is the gold over-valued at $1200? Is it still a | | | | (NSE Symbol KOTAKGOLD), UTI (NSE Symbol |
| bargain hunter's choice? Has it reached new highs | | | | GOLDSHARE), Quantum (NSE Symbol |
| due to fundamental factors? Are the speculative | | | | QGOLDHALF), SBI (NSE Symbol SBIGETS) and |
| forces driving the prices? Keeping aside the | | | | Religare (NSE Symbol RELIGAREGO) are other |
| debate on these questions, one thing is certain | | | | Mutual Fund Houses that have launched GOLD |
| that gold will continue to be a part of every | | | | Exchange Traded Funds. |
| investor's portfolio as an insurance against inflation, | | | | Most of the Gold ETF schemes have provided |
| geopolitical tensions and turbulence in the global | | | | compounded annual returns of about 23% since |
| financial markets. | | | | the date of inception. The minimum investment |
| This article explains some basic yet useful | | | | amount varies from Rs.5000 to Rs.20,000 |
| information about investment in gold through | | | | depending upon the Mutual Fund. If you want to |
| alternative channels such as Gold Exchange | | | | know more about different features of GOLD |
| Traded Funds instead of buying physical asset. | | | | ETF Schemes such as what the face value of |
| In India, Gold Exchange Traded Fund is a relatively | | | | each unit is, what the applicable loads and |
| new concept but since the day Benchmark Mutual | | | | expenses are, how to invest in Gold ETF |
| Fund launched the first Gold Exchange Traded | | | | schemes, and how to buy and sell gold units on |
| Fund on 8 March 2007, six more mutual fund | | | | stock exchanges, you should refer the websites |
| houses have launched Gold Exchange Traded | | | | of AMFI or Mutual Funds. |
| Fund, which is a cost effective and convenient | | | | Summing Up: |
| method for investing in gold through units of | | | | Regardless of where the gold prices are going, |
| mutual funds. Gold ETF offers many advantages | | | | smart investors, global or Indian, will continue to |
| over the conventional method of buying physical | | | | allot a small percentage of their portfolio to yellow |
| gold. Investment objective of Gold Exchange | | | | metal. Launching of Gold ETFs in India has made it |
| Traded Funds is to generate returns that closely | | | | a simple and convenient affair for the investors |
| correspond to the returns provided by domestic | | | | who want to buy gold as a hedge against inflation |
| price of spot gold. | | | | or as an investment asset. |
| At present, there are seven Gold ETF schemes | | | | |