Gold ETFs are exchange-traded funds that expose investors to gold without having to directly buy, store and resell the precious metal. Some gold ETFs directly track the price of gold, while others invest in companies in the gold mining industry. You don't invest directly in gold itself when you invest in gold funds. The most common way to buy gold directly is in gold bullion coins.
The most common way to invest in gold as an investment guarantee is through an exchange-traded fund (ETF), such as SPDR Gold Shares (GLD). The most obvious metrics to consider when reviewing a gold mutual fund for investment purposes include the fund's overall and annual returns. Both types of funds can offer decent returns that are in some way related to the price of gold and can be adapted to different investment objectives. In addition, the minimum amount of investment that would need to be made in Gold Mutual Funds is 1000 INR (as a monthly SIP).
SBI Gold Fund The plan seeks to offer returns that closely correspond to the returns provided by SBI: ETF Gold (formerly known as SBI GETS). This iShares gold ETF is not as liquid as the SPDR Gold Shares and its supply and demand differentials are not as tight, making it not ideal for short-term traders. Since this investment is made through an investment fund, investors can also opt for systematic investments or withdrawals. This list includes the most popular gold ETFs on the market (funds you can usually read about in almost any daily commodity summary), as well as some that don't receive as good coverage in the financial media, but that could be better investments than their high-asset siblings.
You don't expect to get very high returns over extended periods of time investing in gold, but moderate returns can be expected. The average long-term return on gold as an investment tends to be around 3%, much lower than that of most 26-pence 500 pound stock funds. While you may be able to find a lot of gold mutual funds, most of these funds also invest in other precious metal assets such as platinum, palladium, and silver. Some investors prefer the security of physically storing their gold investments and storing them in a safe place that they can access at any time.
Some people turn to investing in gold to diversify their portfolios, and aggressive investors may try to profit from short-term swing trading. Its investments also include foreign and domestic stocks of companies of any size that provide goods and services in all sectors related to gold mining and precious metals industries. Mutual funds also allow investors to choose from a variety of asset classes and investment types, ranging from commodities such as gold to various stock market sectors and emerging market stocks.