A gold / silver fund of funds belongs to the precious metals fund category. While precious metal funds focus on mining materials, they also make sizeable investments in gold / silver bullion.
A Gold / Silver ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold and silver price. Such ETFs are passive investment instruments that are based on the prices of these precious metals.
No wastage component
Investing in gold / silver ETFs eliminates the making and wastage component of physical metals.
Fund portfolio transparency
Because these ETFs perform in relation to gold prices, ETF holdings are completely transparent.
How does a Gold / Silver Fund of Funds work?
Investing in these ETFs is equivalent to purchasing the actual precious metals in electronic form. Investors can buy and sell these ETFs just like stocks.
There are mutual fund schemes for Gold / Silver ETFs as well, in which the fund actively invests in units of Gold / Silver ETFs. FoFs do not require a demat account, making this a very convenient way of buying gold / silver at low expenses.
Disclaimer
Pickle-Jar Investments Private Limited (CIN. U67100PN2021PTC201233) is a NISM Certified / AMFI Registered Mutual Fund Distributor registered with the Association of Mutual Funds in India (AMFI), holding ARN No. 184140 valid upto 12 Aug 2027. We are not Registered Investment Advisors (RIA) as defined by the SEBI (Investment Advisers) Regulations, 2013 and do not provide investment advice on any SEBI regulated products. We do not charge any fees to our clients. We receive remuneration by way of commission / Brokerage from the Mutual Funds/ Asset Management Companies.
Mutual Funds investments are subject to market risks. Please read all Scheme related documents carefully before investing. Past performance of schemes may or may not be sustained in future. We advise investors to read data and risk factors of various mutual fund schemes available in the Scheme Information Document (SID), Statement of Additional Information (SAI), Key Information Memorandum (KIM) etc.