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Exit Guide

What are Gold Mutual Funds?

Gold mutual funds are a type of mutual funds that invest only in gold as an asset. They are a virtual way of investing in gold.

Pro Tip:

To learn about mutual funds, check our guide here.

What is virtual?

Virtual means something that is not in its physical form.

If something is virtual, you cannot see, feel, or touch it.

What is Financial Planning?

An example of virtual can be money in your bank account.

Your bank account has money in the form of numbers. 

  • You can see the amount of money in numbers
  • You can use it.
  • It is not in the form of banknotes or coins.
  • You can’t touch it unless you withdraw it.

 

 

The only difference with virtual gold is that you cannot withdraw it in the form of gold.

 

Therefore, by investing in gold mutual funds, you can invest in gold without actually buying physical gold.

What are the types of gold mutual funds?

Gold mutual funds are of three types.

  •  Gold Savings Fund

 

  • Gold Fund of Funds (FoFs)

 

  • Gold Exchange Traded Funds (Gold ETFs)

To read about gold ETFs refer to our guide.

Let’s learn about Gold Savings Fund and Gold Fund of Funds in detail below.

What is a Gold Savings Fund?

A gold savings fund is a mutual fund that only invests in gold.

What is a Gold FoF?

What is Financial Planning?

  • A Gold FoF is a mutual fund that invests in other gold mutual funds.
  • Their investments may include Gold ETFs, International Gold Mutual Funds etc

Let us learn about the characteristics of Gold Mutual Funds!

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