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Gold funds glitter as MFs plan new offers
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Gold funds glitter as MFs plan new offers
If there is one asset class that has emerged as a clear winner in the past year-and-a-half, it is gold. With a return as high as a strong hedge against equity and a must for every portfolio.
Gold shares a high degree of negative correlation with the equity in the past year-and-a-half.
This means that gold does well when equities don’t and vice versa. With an increasing number of investors looking to make gold part of their overall portfolio, mutual fund houses are leaving no stone unturned to tap the potential of this asset class.
After successfully launching gold exchange-traded funds (ETFs), MF houses are now rushing to launch gold funds — schemes that would invest in these gold ETFs. Four fund houses have sought approval from market regulator Securities and Exchange Board of India (Sebi) to launch such schemes.
These include Kotak, Sundaram BNP Paribas, UTI and Reliance. While Kotak, UTI and Reliance already have a gold ETF in their kitty, Sundaram BNP Paribas is the new one in this category.
Gold shares a high degree of negative correlation with the equity in the past year-and-a-half.
This means that gold does well when equities don’t and vice versa. With an increasing number of investors looking to make gold part of their overall portfolio, mutual fund houses are leaving no stone unturned to tap the potential of this asset class.
After successfully launching gold exchange-traded funds (ETFs), MF houses are now rushing to launch gold funds — schemes that would invest in these gold ETFs. Four fund houses have sought approval from market regulator Securities and Exchange Board of India (Sebi) to launch such schemes.
These include Kotak, Sundaram BNP Paribas, UTI and Reliance. While Kotak, UTI and Reliance already have a gold ETF in their kitty, Sundaram BNP Paribas is the new one in this category.
