Investing in gold during Diwali and Dhanteras is considered a lucky tradition. There are various ways to invest in gold, such as physical gold, digital gold, or Gold ETFs (Exchange-Traded Funds).
In line with the festive season, Zerodha Fund House has introduced a new Gold ETF Fund of Funds, which invests in Gold ETFs.
The fund opens for investment on Friday, October 25, 2024, and will remain available for investors until November 8, 2024.
How Zerodha’s Gold ETF Fund of Funds Works
Zerodha’s Gold ETF Fund of Funds follows a passive investment strategy, meaning it invests primarily in units of Gold ETFs.
The goal of the fund is to generate better returns by investing in Gold ETFs that are linked to the performance of physical gold in the Indian market.
Around 95 to 100 percent of the fund’s assets will be allocated to Gold ETFs, while 0 to 5 percent will be invested in debt securities and money market instruments.
Investors can start with a minimum investment of Rs 500, and the Net Asset Value (NAV) of the fund is Rs 10 per unit.
Expert Insights on Gold ETF Fund of Funds
Zerodha Fund House CEO, Vishal Jain, emphasized that gold is a reliable asset that retains its value during inflation.
He noted that Gold ETFs are a convenient investment option since investors don’t need to worry about storage or security.
Additionally, gold has a low correlation with equity markets, which helps reduce volatility in an investment portfolio.
Vaibhan Jalan, Chief Business Officer of Zerodha Fund House, added that the Gold ETF Fund of Funds aims to make gold investments more affordable and straightforward.
The option to invest through a Systematic Investment Plan (SIP) offers investors, especially first-time or long-term investors, an easy way to gain exposure to gold.
