Invest your Money in Gold – DSP BlackRock's World Gold Fund
by Vinita Solanki Web MasterPrecious 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.
Sponsor Ads
Created on Dec 31st 1969 18:00. Viewed 0 times.