Invest your Money in Gold – DSP BlackRock's World Gold Fundby Vinita Solanki Web Master
Precious metals have always remained an integral component to an investor’s portfolio. Having great intrinsic value, people prefer investing in gold owing to its high value and timeless allure. Known to be a relative standard for currency equivalents in different regions or countries, the price of gold is sharply driven by the demand, supply as well as speculation.
There are many different investment options for those people who want to invest in this precious metal.
Gold can be invested in many different forms. It may be in a physical form, inclusive of bars, bullion, bars or it may even be in liquid form as seen in ETF’s – Exchange Traded Funds and gold mutual funds. They may also be bought in the form of derivatives, CFDs (contracts for difference) and spread betting.
While Gold ETF’s tracks the real-time price of gold, it is very similar to owning it in its physical form; the only exception being that it is in liquid forma. Gold equity funds buy shares from gold mining companies and profits are determined by the increase in stock prices of these companies.
Various financial companies offer various means by which you can invest in this precious metal. Most people in India choose to invest in gold in the form of jewellery. Having a strong cultural value, this precious metal is especially bought during weddings and various religious festivals.
It is a safe investment option and is a great wealth preserver. This gold or wealth is preserved over the years and its value grows at rates higher than even the inflation rates.
It is also an extremely liquid investment, as compared to other investments made in the Indian market. This precious metal can be converted into cash on any day that you choose. It thus acts as a perfect hedge against inflation and is one of the most sought after forms of investment.
There are many different investment avenues for investing in gold in its liquid format. Different financial companies offer a number of schemes to invest in gold. In fact, investing in gold ETF’s and mutual funds have been found to be safer than buying pure gold and jewellery.
You can invest in gold through Systematic Investment Plans (SIPs) with amounts as low as INR 1000. Gold ETF’s are open-ended mutual funded schemes which invest money, collectively from different investors in a standard gold bullion. These funds are passively managed and designed in such a manner so as to provide returns from the physical gold in the spot market.
One of the popular funds is the World Gold Fund by DSP BlackRock. According to this fund, the main aim is to seek capital appreciation by investing money in units of BlackRock Global Funds – Wold Gold Fund (WGF). According to the discretion of the Investment Manager, money can be invested in units of smaller overseas mutual fund schemes. This particular fund is extremely beneficial to those investors who seek for long-term capital growth and who seek investment in overseas funds that are primarily invested in equities and equity related securities (of gold mining companies). It is a high risk fund and is one of the top MF schemes to invest in for gold.
It is always important to invest your money in gold through its various forms as it is one of the best investment options during uncertain times.
Created on Dec 31st 1969 18:00. Viewed 0 times.