In India, the primary purpose of gold funds is to diversification of portfolio and help in reducing market risk.
In order to select the best gold funds, an investor should consider the following:
Taxability:
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https://polskiewyprawy.pl/ long-term. The LTCG on gold is taxed at a 20% rate with indexation benefit (plus surcharge, if any, and cess), while short-term capital gains (STCG) are taxed at the appropriate the slab rate applicable to the investor.
Flexible investment amount:
In India, Gold funds offer greater convenience than physical gold as it allows investors to purchase any amount as per their requirement. An investor can invest either through a lump sum amount or through an SIP as per her/his convenience. Hence, consider your investment goals before making the investment.
Comparison with similar funds:
To invest in the best gold fund, an investor should examine the returns that the gold mutual fund has offered as compared to physical gold.
Also, one should compare the average returns and expense ratios of other gold mutual funds because the low expense ratio will fetch you higher returns. Assess the consistency of fund performance to select a gold fund in 2021.
Liquidity:
Gold ETFs in India enjoy high liquidity and can be easily traded in the stock exchange at the prevailing price.
Diversify investment por