Prajna Capital - An Investment Guide

Gold Fund Of Funds Seen In Demand Of Late LATE in December, Benchmark Asset Management joined a couple of other mutual funds to file its offer documents with Sebi to launch gold fund of funds ( FoF ) in India. A FoF is an investment strategy of holding a portfolio of other investment funds. A gold FoF, which invests in gold exchange-traded funds ( ETFs ) and reflects its returns, will help investors bet on the yellow metal without maintaining a demat account of a stock broker. Currently, investors in India can take exposure to gold by buying the metal physically or investing in gold ETFs offered by local mutual funds. Gold ETFs are passively-managed funds, which are listed and traded on stock exchanges, and designed to mirror the returns from physical gold in the spot market. But many investors, who don’t have a demat account, haven’t been able to transact gold ETFs, as buying or selling them can be done only through stock brokers. Gold FoF attempts to remove this obstacle f...