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This Gold Fund Outperformed The Benchmark, Delivered 6.34% SIP Returns In 1 Year
Gold has historically performed inversely to the success of the equity asset class. So you may protect yourself against the volatility of equities investing by diversifying your investments between gold and stock. Demand for gold increases when stocks decline. Naturally, equity markets increase when gold prices decline. The two asset classes in your portfolio as a result add to its diversity. However, in this article we are focusing on Gold Fund, to be particular SBI Gold Fund.
Why Should You Invest in gold funds?
There are plenty of reasons to invest in Gold Funds. By investing in the gold fund you can build a SIP and invest in gold by following the Gold Funds method. Depending on your risk tolerance and asset allocation choice, keep it as a modest part of your overall investment portfolio and then concentrate on the possibility of stability. Why not physical gold?
Physical gold frequently needs to be kept in a secure location to prevent theft or break-ins. There's also a chance that real gold will get lost or misplaced. All of these problems are solved by Gold Funds, which give you access to Gold as an asset without making you worry about how to keep it.
SBI Gold Fund
SBI Gold Fund is a Fund of Funds (FoF) Gold commodities mutual fund. It is an open-ended and high-risk FoF by the SBI Mutual Fund. It is a more than 10-year-old gold fund launched on September 12, 2011. The fund will soon turn 11 years.
Under the SBI Gold Fund's Direct Plan-Growth option, the Asset Under Management (AUM) of this fund is Rs 1172.83 crore. The expense ratio of this fund is 0.1%, which is below its category average expense ratio of 0.55%. The Net Asset Value (NAV) of the fund declared on 21 July 22 is Rs 16.1352.
SBI Gold Fund benchmark is the domestic price of gold. The fund seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS). It has been rated 3-star by Value Research.
Minimum Amount Required
The minimum investment amount required for this fund is Rs 5,000 for lump-sum payments and Rs 500 for SIP. The fund also allows additional investment. For additional investment, the minimum amount required is Rs 1,000. There is no lock-in period in this fund, however, the fund charges 1% for redemption on investment if redeemed within 15 days of the investments.
Annualised Returns
Lump-Sum Investment Returns
Since its inception, it has delivered a 4.34% annual average return to investors.
| 1-Year | 2 Year | 3 Year | 5 Year |
|---|---|---|---|
| 5.48% | 0.92% | 12.52% | 11.52% |
SIP Returns
| 1-Year | 2 Year | 3 Year | 5 Year |
|---|---|---|---|
| 6.34% | 3.01% | 5.97% | 10.55% |
Disclaimer
Mutual funds/Gold Fund investment are subject to market risks. Read all scheme related documents carefully before investing. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.
