Invest in this gold fund without a demat account through SIPs
15-Feb-2011 •Research Desk
I want to invest in gold SIP with an option to take delivery at the end of the term. I came across the Apollo Sindhoori plan but, it has been withdrawn. Can you suggest any other scheme?
The Reliance Gold Saving Fund, a new fund offer, is a good option to consider. This open-ended fund of funds scheme is convenient for investors as it does not require a demat account, which is otherwise necessary to invest in ETFs. This passively-managed fund of fund invests in the open-ended Reliance Gold Exchange Traded fund, which in turn invests in physical gold with 99.5% purity. The SIP option in this fund starts at 100. However, the fund does come with a few riders. While the Reliance Gold ETF is having no load, this fund has an exit load of 2% in the first year. But, the bigger problem is the recurring dual expense that adds up to 1.5%-1% in Reliance Gold ETF and 0.5% in Reliance Gold Savings Fund. This is the cost of convenience that one will pay while investing in this fund. Understand these issues before considering investments in this fund.