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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 I came across the Apollo Sindhoori plan but, it has been withdrawn.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?
— Solomon
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.
This article was originally published on February 15, 2011.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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