A disciplined mutual investor tries to invest through SIP (Systematic Investment Plan) to beat market volatility and for rupee cost average. For those of you who don’t track markets regularly SIP is the best way for your mutual fund investments. Even if we track markets regularly, we usually find it difficult to gauge the bottom when the markets are going down.
If you are planning to invest in Gold regularly, there is no better way than gold ETFs. However, unlike normal open ended mutual funds gold ETFs don’t offer SIP facility for investments as they are traded like stocks on the exchanges. But if you want to choose SIP route for gold investments there is an indirect way. As of now three fund houses have come up with Gold Savings Funds which offer SIP facility.
Gold Savings Funds, as I have written a number of times, invest the pooled money in Gold ETFs. Since your aim is to invest in Gold ETFs and Gold Savings Funds also do the same thing, it’s a good idea to enter into SIP of a Gold Savings fund.
You can choose one of the below gold Savings Funds
The advantage with Gold Savings Funds is you don’t need to open a demat account and it also allows you to invest through an SIP. The down side is the expenses the fund house charge would be relatively high when you compare it with Gold ETFs.
In a nutshell I would recommend this.
Those who already have Demat Accounts, can directly invest in Gold ETFs regularly at your convenient time.
Those who don’t have a demat account and want to invest only in Gold ETFs (I mean no plans of playing in stock market), better go with Gold Savings Funds SIP route.ADVERTISEMENTS