Strike Gold with Investments!

Due to the maddening world of investments and returns, most people today are highly sceptical when it comes to putting in their money into a fund that may not yield results up to expectations. This difficulty also makes it tougher for managers to pitch their schemes as viable vehicles for investment, as every penny matters when it comes to profiting on your own money. However, one mode that is unanimously preferred is that of betting on precious metals. But before you quickly find a gold or silver stock for allocating your money, here are some things you should know.

• Why such funds?

Unlike static monetary or security-based funds, a lot of people prefer to invest on commodities because the prices rarely fall drastically. Moreover, because of their value amongst businesspersons, traders and families, metals such as silver or gold are nearly always in high demand when it comes to investment. Thus, having gold mutual funds as your primary stock-earning vehicle may turn out to be a good idea.

• What to know?

Just like any other mutual fund, there is a degree of risk involved here. Thus it is important to read the fine print and know your obligations as well as the expected returns on the money. Unlike a rudimentary method of straightaway pawning your money against the gold, in such funds the fund manager operating on your behalf will place your money against the securities of gold-mining companies, thus equalling the monetization of those shares when it comes to your returns.

• How to get one?

These are complex mutual funds so it is always important to take your time before deciding on one. Many brands and mutual fund corporations are offering schemes centred on gold, such as the DSP Blackrock World Gold Fund, wherein the objective is to achieve capital appreciation through exactly this. The World Gold Fund is one among several others such as BSL Gold or Kotak Gold Fund to offer this.

So strike the right spot and hit the jackpot!