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Hard to Guess Returns

It is very difficult to guess what kind of returns a hybrid fund that invests in gold will generate…

There is an NFO of BNP Paribas Income & Gold fund. What kind of returns can we expect from this fund?
-Sudhanshu

It is very difficult to guess what kind of returns this fund will earn because the fund’s performance is dependent on the price of gold, which has seen numerous fluctuations. The price of gold has surprised us in the past 3-4 years, which could be the case in the future as well. But gold prices can also surprise us by disappointing us. This is why we would suggest you to stay away from such complex products.



This article was originally published on May 31, 2012.

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