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.

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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  1. It is for those who don't have a demat account else one can directly invest in HDFC Gold ETF.

  2. Thanks for your comment bemoneyaware.

    The fund manager may choose to invest 95% to 100% in HDFC Gold ETF. He or she may choose to invest 0% to 5% in Reverse repo and /or CBLO and / or money market instruments and / or Schemes which invest predominantly in the money market securities or Liquid Schemes.

  3. Best Investments: How much beneficial would it be, for a new comer, in coming to the GOLD market, at this time? Should he come up with this fund or would you recommend some other.

  4. Our viewpoint - high risk taking investor could enter now but low risk taking investor should stay away. Gold is relatively stable but has been very volatile oflate.