5 Best Gold Mutual Funds To Invest In 2021 With Lowest Expense Ratio

Now there are various financial instruments available with gold as the underlying such as Gold ETFs, gold bonds and Sovereign gold bonds (SGBs) but here we will discuss how gold funds can be a good investment option:

Features of gold funds

Before we get on to detail the features of gold funds, gold funds are largely open ended funds that invest in gold exchange traded units and offer returns that typically correspond gold prices.

- Gold funds invest its corpus in various gold forms including physical gold, gold mining companies.

- Investors through this mode of investment get to invest in pure gold at relatively low cost.

- High liquidity is offered as investors can sell them anytime at market rates.

- Also gold funds are deemed to be a better investment option for investors, better than even Sovereign gold bonds (SGBs). This is when there is a need for rebalancing and one needs to reduce or pare their SGB units which can be sold with difficulty at the exchange because of the low liquidity that is offered on the exchange

- Hence it is very clear now if gold is being added for investment reasons, gold ETFs and gold mutual funds shall be the best option which investors need to go with.

So, here as gold mutual funds shall more or less yield return basis the underlying gold prices, expense ratio can be an important aspect:

Top Gold Funds With Lowest Expense Ratio:

{photo-feature}