Why consider the Mutual Fund route over purchasing Physical Gold?

Gold has long been cherished for being a store of value, a symbol of good fortune and being part of our cultural tradition since ages. The metal also serves as a hedge against inflation, currency depreciation and economic instability.

During the festive season, investors rush to purchase gold. They seem to be familiar with physical gold (jewellery, coins, bars, etc.) However, some tend to assume that investing via the Mutual Fund route entails buying “paper gold”, which is not the case. When you invest in HDFC Gold ETF and HDFC Gold ETF FOF, your funds are invested in physical gold bars with purity of 99.5% fineness or above@! Physical gold is held safely in vaults by the Custodian as appointed by the Mutual Fund Trustee. Storage and insurance is handled by the Scheme, thus being a convenient option for the investor.

@Complies with Good Delivery norms as specified by SEBI Regulations. HDFC Gold ETF Fund of Fund investors also enjoy this feature as the Fund of Fund (FoF) invests in HDFC Gold ETF units.

Comparison between investment in Gold via the Mutual Fund route versus via physical purchase

@Complies with Good Delivery norms as specified by SEBI Regulations. HDFC Gold ETF Fund of Fund investors also enjoy this feature as the Fund of Fund (FoF) invests in HDFC Gold ETF units

Conclusion

Investing via the HDFC Mutual Fund route does not mean investing in paper gold. It implies owning gold in a safe, convenient and hassle-free way, without concerns about the purity of the underlying gold. Consider investing digitally in gold by opting for HDFC Gold ETF and HDFC Gold ETF FOF.

Wishing you and your loved ones a sparkling New Year!

Note: Investors in the Scheme (HDFC Gold ETF Fund of Fund) shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes in which these Fund of Funds schemes makes investment (subject to regulatory limits).

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to seek professional advice before investing.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.