5 gold fund investment tips for beginners
Gold is one of the most important elements present today. The craze for acquiring it has been on the higher side since ages. Investing in Gold is one of the most sought after profitable investments for a person. This makes the Indians choose their investments in the Gold, which can yield them good results along with adding a property to it. So, investors choose some of the best occasions for these investments such as festivals that include, Diwali, Akshaya Tritiya and other important months. In general, investors while planning to invest in important things will look out for the factors such as safety, liquidity along with returns on their investments.
Why are Gold funds in India increasing?
Gold funds in India are following a huge increase due to the following two reasons and they help in proving the right way for taking the correct decision:
1. Gold investment is one of the best investments amongst other options. It is known as an inflation-beating investment because in the end gold investments and inflation will go hand-in-hand, without much difference in them.
2. When it comes to equity, both gold and equity go in the inverse relation with each other, which means if equity decreases, gold performs well and vice versa.
The above two reasons make conventional investors invest in Gold and gain benefits.
What are the gold funds’ investment tips for beginners?
The people, who have never known anything about investing in gold funds, maybe afraid and would like to look at the best options or tips first to allow them to gain better returns.
So, here are a few tips to invest in gold funds.
1. Investment of physical gold in gold funds is one of the best options to pursue. This is considered as a best decision because it is made in bullion or collectable coins. Companies involved in this investment are into mining the gold. In this way of investment, one will have tangible ownership with direct exposure.
2. In general, the experts say that the gold investments need to diversify similarly as the other investments, across different asset classes. But this type of investment will surely hurt investors with a corpus of small to medium size in the long run.
3. Gold funds also have an attractive feature. The changes in the gold prices will not affect them directly at any point.
4. The people, who are too concentrated on investing much in gold or gold funds, need to limit themselves by keeping the investments to the minimum which can be in the range of 5 to 10% and not more than that. Because as per the experts, a large number of investments in gold funds may lead to greater stability during the risky times, but can also drag the overall returns to the very little amount in the long run.
5. Gold funds are also available in the form of SIP and thus eliminate the risk of theft, so beginners can consider this type of investment.
Thus, it can be stated that gold funds are best suited for those who are expecting huge returns and are very calculative in nature.
