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No Sense in Switching Gold Funds

All gold ETFs and gold funds are alike. Switching funds within the same asset class won’t increase gains...

I have invested in HDFC Gold and HDFC Top 200. My gold fund investments are currently making losses. Should I switch to some other gold fund?
-Gopal

All gold ETFs and gold funds are alike as they invest in the same commodity. So, moving from one gold fund to another won’t make a difference to your investments. We don’t recommend investments in gold anyway. Gold isn’t a viable long-term investment. Hence, we would recommend that you move your investments in the gold fund to either an equity fund or a balanced fund. You can invest more in HDFC Top 200 itself, or pick a well-performing balanced fund if you're a risk averse investor.



This article was originally published on July 18, 2013.

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