Skip to main content

Gold Mutual Fund Returns

Gold Mutual Fund Online
 
 
 Despite the current short term bounce, the returns of gold funds over a 5 year period have been disappointing
 
 
Gold is not forever
 
The Brexit bedlam triggered shock waves in global markets, but the fear benefitted one specific set of investors: gold bugs. Gold prices have just hit multi-year highs amid renewed market jitters over how Britain's decision to leave the European Union will impact growth and earnings. However, the short term spike in gold price does not hide the fact that the long-term performance of gold mutual funds has been pedestrian.
 
 

U.S. gold is trading near highs of $1,370. Indian gold prices have moved up in-step. Standard gold (99.5 purity) in Mumbai has climbed to R31,315 per 10 grams. Pure gold (99.9 purity) is trading near R31,465 per 10 grams. In December 2015, gold in the domestic markets was trading just below R25,000.

 

Just after Brexit became a reality, World Gold Council said: 'With Britain voting to exit the European Union, we expect to see strong and sustained inflows into the gold market driven by the staggering level of protracted uncertainty that investors now face.'

 

Cashing in on fear
The month ended June 30 has seen 4.3-8.99% gains for gold mutual funds, shows data from Value Research. This has led too high year-to-date gains on gold savings funds. Invesco India Gold Fund (31.19%), Axis Gold Fund (up 25.49%), IDBI Gold Fund(24.01%) and SBI Gold Fund (21.92%) lead the charts. Gold ETFs, which passively track gold prices, have clocked YTD gains of 24-26%, in-line with gold's swashbuckling innings.

 

The feel-good factor may stay when you look at 1-year returns as well. For the one year ended June 30, gold ETFs have clocked 16.68-17.86% gain, with UTI Gold ETF, ICICI Prudential Gold ETFand Goldman Sachs Gold ETF leading the charts. Among gold savings funds, returns ranged from 12.1 per cent to 15.8 per cent.

 

But returns for longer time horizons like 5 years change the picture drastically.

 

Gold savings funds as a theme were heavily marketed after the second quarter of 2011, a year when equity benchmark Sensex dropped by over 24%. Gold touched all-time highs in 2011, as demand for safe-haven assets grew in the face of economic turmoil and weak equity markets. Investments at those highs haven't really paid off.

 

The 5-year return for Kotak Gold Fund Regular Plan is 4.42%,Quantum Gold Savings Fund gained 5.09% and Reliance Gold Savings Fund has managed 4.7% in the same period.

 

There are nearly 10 gold ETFs with a 5-year history. In terms of returns, they have given 6.3-6.55% gains in this long tenure. Those returns are paltry. In the same five year period ended June 30, large-cap equity funds gave 4.2-16 per cent, mid-cap funds 8.38-23.91% and even debt funds (dynamic) managed 7.6-11.16%.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saver Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now