I am 32 years old and I have a daughter of 5 years.I plan to accumulate gold for her when she grows to 25.I used to by 10 gram gold and keep it in a locker from last 2 years , but thats of not much use and a bit risky.I have heard there are some MF schemes which has one unit as one gram of gold and the unit value varies as price of gold in market changes.
Please advise me some best fund where I can invest and my money is not in risk.
Regards
Sanjay
Dear Sanjay, For your specific need of accumulating Gold for your Daughter's marriage, I 'll like you to invest in Gold ETF. First open a demat acct. & once your demat acct. is open, you may purchase at least 1 UNIT of Benchmark Gold ETF every month. This way you 'll be able to accumulate 12 unit of the fund over a year.
Plz. understand 1 UNIT of this fund represents 1 gm. physical Gold of 99.995% purity (24 Carat in normal parlance).
From the current age of 5Y of your D'ter, you 'll be able to accumulate a total of around 240-250 gms of gold over next 20Y.
Thanks
Ashal
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2 comments:
Dear Ashal,
Instead of going for GOLD fund can we choose a normal EQ. Diversified fund namely HDFC Top 200 / DSP Top 100 wherein the returns are higher when compared to Gold funds.
Whats your take on this?
Lloyd
Dear Lloyd, For saving various other goals, a normal Eq. diversified Fund should be used.
In case of exclusive Goal of accumulating gold for the marriage of child(ren), it's advisable to opt Gold ETF & to invest on mly basis. This way one can accumulate sufficient gold over the period of time as per requirement.
Thanks
Ashal
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