Reliance Mutual Fund presents - Reliance Gold Savings Fund , first Gold Fund of Fund in India. This is Fund of Fund which allows you to invest in gold even if you dont hold the Demat Account.
Brief Synopsis
- The first fund of fund in India which enables you to reap the returns of gold as an asset class in a paper form without the need of a demat account.
- This fund would facilitate you to accumulate gold returns from a long term perspective through lump sum and systematic regular investments.
- The fund seeks to provide returns that closely correspond to the returns provided by Reliance Gold Exchange Traded Fund, which in turn invest in physical gold.
- It aims to give investors the opportunity to participate in the bullion market in a relatively cost effective and convenient way.
- An investment opportunity which enables you to allocate gold, a foundation asset to your portfolio in a systematic way. This fund would enable you to add the yellow metal which is considered as a safe haven, hedge to inflation and diversify your portfolio in a convenient way.
Product Features
- Minimum Application Amount: Rs. 5,000 and in multiples of Re. thereafter
- Additional Purchase Amount : Rs 1000 (plus in the multiple of Re.1)
- Minimum Purchase Amount through SIP:
- Rs.100/- per month and in multiples of Re. 1/- thereafter for minimum 60 months
- Rs.500/- per month and in multiples of Re. 1/- thereafter for minimum 12 months
- Rs.1000/- per month and in multiples of Re. 1/- thereafter for minimum 6 months
- Rs.500/- per quarter and in multiples of Re. 1/- thereafter for minimum 12 quarters
- Rs.1500/- per quarter and in multiples of Re. 1/- thereafter for minimum 4 quarters
It is a passively managed fund which would enable an investor to save for gold in a convenient manner either through lump sum investment or through systematic investment from a long term perspective.
It will give investors the opportunity to participate in the bullion market in a relatively cost effective and convenient way.The fund seeks to provide returns that closely correspond to the returns provided by Reliance Gold Exchange Traded Fund, which in turn invest in physical gold.
WHY INVEST IN GOLD now
- Fundamental weakness in US dollar
- Fear of Inflation
- Sovereign debt concerns
- Central banks buying spur
- Increasing importance of portfolio diversification
- Strong investment demand in major consumption nations - India and China
- Geopolitical uncertainties
BENEFITS OF INVESTING THROUGH MF PLATFORM RATHER THAN ETF
- Open door for non - demat a/c holders
- Systematic Investment Plan (SIP)
- Liquidity - subscription and redemption on all business days from AMC
- Cost Effective : No annual maintenance, delivery brokerage & transaction charge
Significance of Jewellery in the Life of Indian Women
- Gold possession is embedded in the customs and the traditions that carry significant importance to women
- Ornaments, such as mangalsutra, nath (nose ring) and toe rings, quintessential for married Indian women
- Jewellery gifted to women at the time of her marriage is called 'stridhan' i.e. wealth of women, which in short is symbol of wealth, power and femininity.
Gold has a traditional value in India
- It is believed that buying & wearing new gold jewellery on Akshaya Tritiya Gudi Padwa & Dhanteras, brings prosperity & success to an individual & his family.
- The festival redefines Gold in all its facets from jewellery adornment to portfolio diversification
- Indians consider occasion as an apt time to buy, wear and celebrate gold
Gold View
Strong investment demand in major consumption nations - India and China
- Per capital consumption of gold in India and China is much lower than developed nations.
- Rising purchasing power of middle class in India and China may lead to higher gold demand
Fundamental weakness in US dollar
- Near Zero interest rates, high trade deficit and fear of higher inflation
- Gold tends to benefit from depreciating dollar
Fear of Inflation
- Bailouts and quantitative easing along with lower interest rate will likely increase the risk of inflation
- Higher commodity prices leads to cost push inflation
- Gold is good hedge against inflation and tends to benefit during higher inflationary environment
Sovereign debt concerns
- Rising debt levels in western economies increases the risk of sovereign defaults, increase risk aversion and benefits gold
Central banks buying spur
- Countries with highest forex reserves have less than 2% of their reserves in gold as compared to many developed nations who have more than 60% of their reserves in gold
- These central banks need to diversify into gold to safeguard against falling currency value
Increasing importance of portfolio diversification
- Limited Supply - Only $7.2 trillion worth of gold mined till date and Less than $ 1.3 trillion held in private investment is available for investment
- Percentage allocation in Gold is quite small against recommendation of 6 to 10% and increasing in allocation will lead to higher gold prices
Geopolitical uncertainties
Geo political uncertainty increase the safe haven appeal of gold
Gold devaluation Cycle
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| Source: Reliance Asset Management Co. Ltd |
Taxation
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| Source: Reliance Asset Management Co. Ltd |
The contents of this post has been Extracted from Reliance Asset management Co. Ltd
