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Gold Fund Options

Gold funds are passively managed fund of fund that don’t require a demat account for investments…

What is the difference between investing in Gold ETF and Gold Fund?
- Chandrashekhar Gogte

When investing in gold ETF the underlying asset is physical gold with 99.5 per cent purity. However; you need to have a demat account to invest in ETFs. To circumvent this necessity, gold funds have been launched by AMCs which are passively managed fund of fund (FoF) that invests in the open-ended gold ETFs of the same fund house. This structure is convenient for those who do not have a demat account and want to start a systematic investment plan in gold, but the convenience comes at a cost in the form of expenses in comparison to direct investments in gold ETF.



This article was originally published on December 07, 2011.

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