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Is this the right time to invest in Gold or Gold Funds?

Date: 14 May 2016    Group: Finance and Investments    Category: Investments   

We all know that Gold is known as safe heaven asset. Year 2016 so far, has been the year of gold. Because Gold assets given a return of around 20% so far in this year. Equity market or stock related asset return is not handsome so far in this year. Can we start investing in Gold metal or Gold related Mutual funds systematically or through SIP?
Experts: awaiting advice.

Interested in investing in gold or gold funds? On this page, experts shall respond to your query.

Author: Kailash Kumar    15 May 2016      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

Investment in mutual fund is always associated with the market fluctuation risks. Also over a very long period the returns on investing in physical gold is generally in the range of 4 to 5% only. In my opinion, investing in promising companies in emerging fields is a better option than investing in physical gold or gold funds. Also the investors are advised to carry out their own research for taking investment decisions as there is no scientific method to predict the outcome with any degree of certainty.

Author: Partha Kansabanik    15 May 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

A very pertinent question. Since 2015, the equities are behaving in an unpredictable manner. On the other hand, the experts feel that the gold price has bottomed out and is riding an ascendancy curve. So, according to the investment experts, the present time is ripe for investment in gold and related instruments. Due to security factors, it is always prudent to invest in gold fund or paper gold instead of investing in physical form of gold.

Author: Mahesh    16 May 2016      Member Level: Gold     Points : 4  (Rs 4)    Voting Score: 0

Performance of physical gold or the gold funds is subject to market risk. So making any claim about them is not reasonable. And also you should never believe and buy those funds or physical gold on the basis of the investment being done.

Most of the time you'd find that investment into the gold funds often be less beneficial unless you are investing into NIFTY Gold bees fund. There are also ETF funds that you can invest into depending on market condition. Don't buy gold just because they are known for market value. Often market doesn't give enough assurance of gold value rising over a period of time.

Make sure you invest into GOLD the amount you don't mind seeing fluctuating in your portfolio. Only allocate the money you can afford to lose into it. Buying the gold few months earlier to the festival season always helps get the better price.

Author: Pravat Kumar Das    16 Jun 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

If you compare to invest in Gold or Gold funds, then I will suggest you to start investing in Gold funds.
Suppose you buy Physical gold, then you need to give making charges, there is fear of theft, loosing the physical gold. But by investing in Gold funds you can invest very small amount starts from Rs 100 per month.
It is always advised to start investing through SIP in Gold funds instead of for a lump sum investment because you can get benefit of averaging, as Gold fluctuates every month , and you can get it at different price.
After 4-5 year you can get a higher return than any other investment.
As this holds in electronic form, so there is no fear of theft, no need to give locker charge, also this can be used for co-lateral for availing bank loans.

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