Investment Planning

Options available in paper gold
It is possible to invest in paper gold through gold exchange traded funds (GETFs) and/or gold fund of funds (GFoFs).

GETFs are open-ended mutual fund schemes (passively managed) which invest the money collected from investors in standard gold bullion (99.5% purity). The investment objective of GETFs is to provide returns that, before expenses, closely correspond to the returns provided by domestic price of gold. However, the performance of GETFs may differ from that of the domestic price of gold due to expenses and certain other factors. The asset allocation of a GETFs is typically 90-100% in gold and 0-10% in money market instruments. Note that investment in GETFs requires opening a demat account with a broker registered with the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). In India, assets managed under gold ETFs have increased from Rs 467 cr in December 2007 to Rs 8,784 cr in December 2013.

  • Market Overview by
    Mr. Navneet Munot,
    CIO, SBI Mutual Fund