Things to take care of while investing in Gold Mutual Funds

Compare AMCs

Different Asset Management Companies have different expenses for managing the fund. It can be better to check and choose the fund with the lower TER (Total Expense Ratio).

Demat accounts for investing in Gold ETFs

For some gold mutual funds like the Gold ETF, you cannot invest without a Demat account.

The chance of making negative returns

The value of gold can either go up or down after you have invested.
Gold’s value keeps changing, and so do the returns of gold mutual funds.
If the value of gold declines from what you have purchased, your returns can turn negative.

Not for emergencies

You cannot redeem all gold mutual funds immediately. Keep some amount of your savings in your savings bank account for emergencies. Don’t put all your savings into gold mutual funds.

Partial withdrawal

There is no need to redeem your entire gold mutual fund investment. You can redeem a part of it and let the other part stay invested without any penalty.

To track your progress

Things to take care of while investing in Gold Mutual Funds

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