Saturday, October 8, 2011

HDFC Gold Fund - Analysis, Review, Recommendation

After SBI and ICICI, HDFC Mutual Fund is also launching gold fund called HDFC Gold Fund. HDFC Gold Fund (HGF), an open ended Fund-of-Funds scheme, would enable investors to invest systematically in gold, hedge their risks against market volatility and to effectively diversify their portfolio. A Fund-of-Funds (FoF) scheme usually invests in other schemes of the mutual fund. Gold FoFs enables the investors to invest through a single investment or through Systematic Investment Plan (SIP).

The new fund offer (NFO) opens on 7 October and closes on 21 October, 2011. The minimum denomination of investment is Rs 100.

The corpus collected through the NFO would be invested in HDFC GETF (HDFC Gold ETF) to seek capital appreciation. As at the end of September quarter, HDFC Mutual Fund, country's largest mutual fund managed average assets worth Rs 91,827.11 crore.

Recommendation:
This is a good investment option for those investors who wish to invest in Gold. Since the prices have skyrocketed, it is much better to invest through a systematic investment plan (SIP). 


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