Which is the best gold fund to invest in?
-Abhilash Pancholi
You don’t need any advice on gold funds, because all gold ETFs and gold funds are alike. All of them invest in gold, and their value goes up and down in line with the price of gold. All such funds invest in exactly the same manner and follow the same structure. You can either buy a gold ETF, or an open-end gold fund that will in turn invest in gold ETF. The only difference between them is in their costs, wherein gold ETFs are cheaper. Their returns are also similar; even if there is a difference, it is in the second decimal point, which isn’t meaningful enough to have any impact. There is a third kind of gold fund, which invests in gold mining companies. These funds are high-octane schemes. They do well when gold prices go up, but struggle when gold prices fall.
This article was originally published on May 03, 2012.
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