Religare Gold Fund with SIP Option
Here is yet another gold fund, and this time it is from the Religare MF. This is just like any other gold fund that invests primarily in the Gold ETF fund of the same company and i.e., in this it is the Religare Gold ETF (Exchange Traded Fund). The NFO is open from November 15, 2011 to November 29, 2011. The price per unit during the NFO is Rs. 10. The minimum investment during NFO is Rs. 5000 and above.
Investment Objective: Of the Religare Gold Fund is to help you get capital gains by primarily investing in Religare gold ETF fund.
Asset Allocation: The asset allocation is up to 95% in gold and balance 5% in debt and money market instruments. The benchmark for this Religare Gold Fund being the price of gold in India.
Loads: No entry load applicable for this fund just like any other new or existing funds, but you may need to incur Rs. 100 to Rs. 150 if you are new to investing in Religare Mutual Funds and are investing via your investment advisor. There will be an exit load of 1% if you exit within 1 year of investment.
Advantages
- Invest in gold via SIP
- Easy liquidity
- Less charges compared with gold jewelry and coins
- No worry about gold theft
- Hedge against inflation
- Power of compounding works with SIP
- No need of demat account to invest in paper gold
After the NFO you can continue to buy the units of this Religare Gold Fund at the existing NAV. But remember if you invest in this gold fund you will need to shell out double charges including that of the Religare Gold ETF. If you already have a demat account then buying ETFs directly is more profitable than buying via such gold funds.
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