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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Reminder from Income Tax Department for Income Tax Return Filing

The income tax department has sent out emails to tax payers reminding them to   e-file income tax returns for income earned in FY 2015-16 (assessment year AY 2016-17). The due date for submission of tax returns for FY 2015-16 is 31 st   July 2016. The following email has been sent- Dear Taxpayer, By this time last year, you may have had already electronically filed your Income Tax Return. This is a gentle reminder for you to file your Income Tax Return for Assessment Year 2016-17. E-filing is simple, easy and convenient as you would have experienced in the last year. You are requested to login to  https:// incometaxindiaefiling.gov.in   and download the free return preparation software with a host of new features to help you in preparing the Income Tax return and submit your return. You can also prepare and submit ITR1 and ITR4S online. Please take some time to browse through all the value -added services offered on the E-filing website that will help you prepare your return accurat
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