THE CASE FOR GOLD
Financial planners recommend gold as an alternate asset class of investment in a portfolio and recommend investors to have 5-10 % of their portfolio in gold. They are reiterating the advice now due to the uncertainties hovering over the world economy and the trouble brewing in the Arab world. Gold is also considered a safe bet and a hedge against inflation by some. It has a very low correlation to other asset classes, making it a handy asset to diversify the overall portfolio.
WHO SHOULD APPLY
Investors who wish to build up their gold portfolio and hold gold as an asset class in their portfolio can apply. Besides this, investors who do not want to go through the trouble of operating a broking account and a demat account, could look at this mode of buying gold via SIPs.
WHY NOT TO APPLY
Being an FoF, the expense ratio here is likely to b
THE CASE FOR GOLD
Financial planners recommend gold as an alternate asset class of investment in a portfolio and recommend investors to have 5-10 % of their portfolio in gold. They are reiterating the advice now due to the uncertainties hovering over the world economy and the trouble brewing in the Arab world. Gold is also considered a safe bet and a hedge against inflation by some. It has a very low correlation to other asset classes, making it a handy asset to diversify the overall portfolio.
WHO SHOULD APPLY
Investors who wish to build up their gold portfolio and hold gold as an asset class in their portfolio can apply. Besides this, investors who do not want to go through the trouble of operating a broking account and a demat account, could look at this mode of buying gold via SIPs.
WHY NOT TO APPLY
Being an FoF, the expense ratio here is likely to be higher, compared to an exchange-traded fund. While the expense ratio for the most liquid Benchmark Gold Exchange traded fund is 1%, Kotak Gold fund will have a higher expense ratio of 1.5% per annum. Hence, investors holding a demat account, may find it marginally cheaper to buy gold through the ETF route rather than investing through this fund.
e higher, compared to an exchange-traded fund. While the expense ratio for the most liquid Benchmark Gold Exchange traded fund is 1%, Kotak Gold fund will have a higher expense ratio of 1.5% per annum. Hence, investors holding a demat account, may find it marginally cheaper to buy gold through the ETF route rather than investing through this fund.
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