Safe investment option: There is no possibility of theft in gold ETFs and, since gold exchange rates do not usually fluctuate, it is a risk-free investment option. SBI Gold Fund allows you to invest in gold without having a Demat account (which is a requirement for ETFs). SBI Gold Fund is a %26 fund fund that will invest in SBI Gold ETS. This fund provides convenience for investing in gold, but increases expenses.
Gold may double or triple compared to the current price or it may fall by half, but your financial decision will make no difference in my life, in that of your agent or in that of the asset management firm. I believe that the demand of the “unbanked masses” and of people who have not yet invested in stocks will keep the value of gold high for some time. Sometimes gold is the best, sometimes the real estate market, sometimes equities, so it's wise to invest in different asset classes. My suggestion is that, even if after reading the entire article you would like to invest in gold funds, opt for Reliance or Kotak Gold Fund, which are similar to SBI Gold Fund.
Investment funds are launching gold-related products, gold ETFs, international gold funds and gold-based asset allocation funds, one after the other, as GOLD is in demand. In the case of long-term investments, mutual equity funds should form the core of the portfolio and gold funds should act as a hedge to balance and add stability to the overall portfolio. Reliance Gold Savings Fund %26 SBI Gold Fund are exactly similar funds, so if you read SBI instead of Reliance, the meaning will be the same. I agree with you on this: gold should be a small part of the asset allocation and the reason for buying gold should not be the increase in price.
Investment objective: The scheme seeks to generate returns that correspond to the returns provided by the price of gold by investing in physical gold. Gold price movements are not rocket science: when the world has excessive liquidity (more dollars), it continues. As for actually investing in gold — the rise in price has been staggering — I still think that it should now stabilize.