Image courtesy Nippon India Mutual Fund
While buying gold on Dhanteras is a tradition in India, a smart investor can invest in Nippon India Gold Savings Fund this year. Unlike physical gold, Nippon India Gold Savings Fund is easier to buy and sell, and it doesn't have issues like making charges, storage, or purity concerns. By investing in Nippon India Gold Savings Fund, investors can follow the tradition of Dhanteras with more flexibility and security.
Nippon India Gold Savings Fund offers several advantages that make it a good option for investors looking to add gold to their portfolios.
1. Hassle-Free gold ownership
Many investors are aware of the historically appreciating value of gold but find it difficult to buy and store the physical gold. Storing and safeguarding gold in physical form can be expensive and inconvenient. Investing in Nippon India Gold Savings Fund allows you to own gold without the storage hassles.
2. Real-time gold exposure
The value of the units gathered with this mutual fund scheme moves in tandem with the actual market price of gold. This means that the value of your investment follows the pattern of ups and downs of the value of gold. This can offer you direct and real-time exposure to the performance of gold.
3. Portfolio Diversification
By investing in the Nippon India Gold Savings Fund, you can diversify your portfolio and add a precious metal component to your risk management strategy. This can help mitigate risk, as gold may behave differently from traditional asset classes.
4. Cost Effective
When you buy physical gold in the form of jewelry or coins, you incur additional costs, such as making charges and wastage. These costs can significantly reduce your effective investment in gold. By investing in Nippon India Gold Savings Fund, investor can avoid these additional charges.
5. Low entry point
The fund allows you to start investing in gold with a relatively low initial investment amount. This accessibility means that even investors with limited capital can participate in the potential benefits of gold. This is quite different from investing in physical gold, for which you may need adequate capital upfront based on your needs and preferences. Minimum Application Amount here is Rs.100 and in multiples of Re.1 thereafter.
6. SIP: Systematic Investment Plan
Investors can also invest in small fixed amounts of money regularly usually every month on a predefined date submitting a one time application form for SIP.
