AIG GOLD MUTUAL FUND---- HOW NAV is calculated

[pons]

I invested 50000 in the month of april 2011 in AIG GOLD FUND.
Gold rate is nearly increased by 15 % from april. But my investment went down by 2%.

Then how the NAV is calculated for MF.

I think it is better to go for ETF comparing to gold mutual fund...
Any body having good expere3nce in gold investment may give good suggestion.....

 

[2021]

It's not a gold fund. It's an gold mine international fund. Recently there was a long strike in South Africe gold mines and hence all such shares, mutual funds and ETFs fell 10-15%. Also as gold price go up demand for gold decreases and hence gold mines bear losses. Today itself Falcon Gold Fund in which AIG gold invests upto 80% is down by 3.5% when gold is at all time high. So when you choose funds do look at portfolio and where they invest, benchmark and historical returns to be on a safe side. Also investing in gold funds makes no sense as it carries triple expense charges, 1 exit load, 1 expense ratio and most unwanted, fund of fund charge which comes around 1.5-2% so adding 1, 2 and 3 you pay 1%, 2.5% and 1.5% i.e. 5%!! It's make more sense to invest via ETFs.

 

[pons]

thanks for quick reply...
I think ETF also has all limitation what you have listed... that is the 3 points. But all ETF are trading at all time high at par with international gold.

 

[shilpaks7]

what about e-gold? i have done any research so im not sure of the profits or if its better than MFs/ ETFs but that could be another way to invest in gold

 

[KoolSIM]

thanks for quick reply...
I think ETF also has all limitation what you have listed... that is the 3 points. But all ETF are trading at all time high at par with international gold.

Gold ETFs are one of the closest and most convenient instruments to Physical Gold. Hence their prices are almost identical.

AIG World Gold Fund has exposure to the companies involved in mining gold as compared to actual gold itself. As a result, there is a lot of difference and a whole host of factors come into play like specific company fundamentals and macro environment around these specific companies.

If you want exposure to gold itself, then Gold ETFs are the way to go!

 

[rvm123]

Gold ETF's are available from reliance, kotak, etc., and most of them are available equivalent to 1 gm of gold. their cost will vary directly proportionate to the international gold rate. Other MF's are fund of funds and they invest in funds which will invest in gold.

U can buy Gold ETF's as a unit of 1 gm or 1/2 gm. Other MF's can be bought at NAV's for Rs.1000/-, etc.