Reliance Gold ETF Review

Reliance Gold ETF Review

Reliance Gold ETF is the Exchange Traded Fund which is listed on BSE and NSE and this fund buys physical gold from your money on behalf of you and keep it in a safe custody.

The 1 unit of this fund closely track the price of 1 gram of gold. And the minimum Investment in this fund is Rs.5000.

Gold ETF is a very new concept in India. Since thousands of years, Indians are investing in a Gold. But till now, there was not any financial product related to gold. But Gold ETFs are the revolutionary change in the gold investing of India.

The main advantage of Reliance GOLD ETF is that, here you can simply buy the units of this fund and your fund manager will invest your money in physical gold on behalf of you and keep it in safe custody. So there is not any issue of purity and security of this precious metal.

Traditionally gold price has direct correlation with the US Monetary Base (Money Supply) and that’s why whenever the US Government prints more money and increase its monetary base, it dilutes the purchasing power of the existing money in the circulation by causing inflation and thus drives the gold price up.

And that’s why since past few years, Gold ETFs have beaten Equity mutual funds also.

Gold ETFs are for those investors whose only purpose to buy a gold is the investment purpose.

However, keep in mind that your overall portfolio allocation should not be more than 10% in gold. Don’t put all of your money in gold but also invest in Equity and Debt.