GFoFs provide all the three advantages provided by GETFs - no risk of holding physical gold, affordable and liquid. However, GFoFs are more liquid than GETFs as investors can directly surrender the units to the fund house any time when they wish to get the money back. Another big advantage of GFoFs is that they provide SIP facility. GFoF is a better option for long-term investors who believe in the buy-and-hold philosophy.
Though gold as an asset class has seen a sharp decline in 2013, its potential as a safe investment remains unquestioned albeit over the long term. To stay on a safer path and add value to their portfolio, investors would be better off investing in a disciplined manner in the paper form.
CRISIL Research, a Division of CRISIL Limited has taken due care and caution in preparing this Report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL