Fed up with Ads? Install Dainik Bhaskar app for news without ads
new Delhi15 hours ago
- Copy link
- Gold mutual funds are a type of gold ETF.
- You can start investing in gold mutual funds with less than Rs 1,000 through SIP
Gold mutual fund is becoming a preferred medium for investment in gold in our country. In the last one year, the returns of the gold mutual fund category have been around 30%. In such a situation, if you are also planning to invest in it, then we are telling you about the gold mutual fund.
What is Gold Mutual Fund?
Gold mutual funds are a type of gold ETF. These are schemes that primarily invest in gold ETFs. Gold mutual funds do not invest directly in physical gold, but take the same position indirectly. Gold mutual funds are open-ended investment products that invest in gold exchange traded funds (Gold ETFs) and their net asset value (N AV) is tied to the performance of ETFs.
Can start investing with 1000 rupees
You can start investing in gold mutual funds with a monthly SIP of less than Rs 1,000. A demat account is not required to invest in it. You can start investing in it through any mutual fund house.
How much tax is to be paid?
An investment of more than 3 years in a gold mutual fund is considered long-term and its profit is called long-term capital gains (LTCG). Gold is taxed at a rate of 20% with indexation benefit (plus surcharge, if any and cess) on LTCG, while short-term capital gains (STCG) are taxed at the slab rate applicable to the investor.
Gold mutual funds have an exit load of 1 year
Gold mutual funds may have an exit load which is usually up to 1 year. Mutual fund houses charge an exit load when you want to recover the profits of your investment before a certain period. The exit load is levied to prevent investors from going out. Different mutual funds have different time to apply exit load. The exit load is a small part of your NAV, so it is cut off when you go out.
5 Best Gold Mutual Funds to Invest
|Fund Name||Last 6 months the return of (%)||Last 1 Year Return (%)||Last 3 Year Return (%)||Last 5 Year Return (%)|
|Invesco India Gold Fund||5.3||29.2||17.6||14.4|
|Aditya Birla Sun Life Gold Fund||4.6||28.1||17.4||13.7|
|SBI Gold Fund||4.9||29.8||17.7||13.1|
|Nippon India Gold Saving Fund||4.4||29.1||17.5||12.9|
|HDFC Gold Fund||5.0||30.0||17.8||13.2|