Have you ever thought of SIP in GOLD ETF???????
Many of us have started SIP in gold fund which are available in market. We were very happy when NAV of gold fund going up even though equity market were correcting form Jan 2008.
Today we observed that fund sold as gold fund which have no perfect co relation with equity market. We are witnessing a once in a life time global turmoil. We have seen that prevailing gold fund is just like one sector fund, like we were typically investing in sector fund like financial services, power, IT, telecom, healthcare, auto, etc; which invest particularly in one sector of equity market.
After learning lesson from existing basket of gold fund we must look for a fund that have perfect correlation between gold price and NAV of fund. At present we do not have any mutual fund which has perfect positive co relation with price of gold.
At the same time we have gold ETF fund which have correlation with price of gold and price of one unit. But we do not have option to go for an SIP in the same.
In gold ETF investor must have a trading and demat account of his/her. Even after having trading and demat account we cannot go for SIP as there is no such option available in scheme.
We have to every time manually bought on particular day a specified amount of units. Which a normal SIP does with the help of ECS mandate or post dated cheques.
Do you feel there is a need of SIP in gold ETF in your portfolio for asset allocation? What is you say?
Many of us have started SIP in gold fund which are available in market. We were very happy when NAV of gold fund going up even though equity market were correcting form Jan 2008.
Today we observed that fund sold as gold fund which have no perfect co relation with equity market. We are witnessing a once in a life time global turmoil. We have seen that prevailing gold fund is just like one sector fund, like we were typically investing in sector fund like financial services, power, IT, telecom, healthcare, auto, etc; which invest particularly in one sector of equity market.
After learning lesson from existing basket of gold fund we must look for a fund that have perfect correlation between gold price and NAV of fund. At present we do not have any mutual fund which has perfect positive co relation with price of gold.
At the same time we have gold ETF fund which have correlation with price of gold and price of one unit. But we do not have option to go for an SIP in the same.
In gold ETF investor must have a trading and demat account of his/her. Even after having trading and demat account we cannot go for SIP as there is no such option available in scheme.
We have to every time manually bought on particular day a specified amount of units. Which a normal SIP does with the help of ECS mandate or post dated cheques.
Do you feel there is a need of SIP in gold ETF in your portfolio for asset allocation? What is you say?
