First came gold ETFs, next were gold funds, which were nothing but fund of funds that invested predominantly in gold ETFs. With gold performing well in recent years, AMCs have been quick to cash on the gold rush. In the past two years, 11 funds with allocation to gold up to 35 per cent have been launched. Some of these funds have a minimum 5 or 10 per cent committed gold allocation. Most of these schemes are taxed as debt schemes except for three schemes*, in which the equity allocation is above 65 per cent.
Personal finance advice and mutual fund ideas delivered to your inbox every Monday