DSP Mutual Fund launches DSP Gold ETF Fund of Fund. All you need to know
mutual fund scheme, compared to the physical version, with the freedom to trade easily. The New Fund Offer for the DSP Gold ETF Fund of Fund opens for subscription today, November 3rd, 2023, and closes on November 10, 2023. “Gold is a great addition to a typical equity – debt-heavy portfolio due to the low correlation to these asset classes.
The scheme structure presents a convenient way to diversify your portfolio and systematically accumulate gold, automatically adding depth and multi-dimensionality to your investments," says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund. Gold is in focus due to global liquidity drying up, and increased demand from Central banks, combined with supply of the metal remaining stagnant. Investments in gold have typically done well at a time when there is a weakness in the dollar.
Gold also has a historical negative or low correlation with equity which also makes it a good option to diversify away from equity. DSP Gold ETF Fund of Fund offers the advantage of owning Gold in a convenient digital form without the requirement for a demat account to transact. It also presents a systematic way to invest in Gold via SIPs along with the flexibility of redeeming the units without any lock-in period.
Holding gold in one’s portfolio also helps to smoothen one’s investing journey as Gold is an asset class whose prices typically move in a different direction from other asset classes. Hence, having gold in one’s portfolio helps investors diversify their portfolios, which helps it fall lesser during times of a downturn. However, one should bear in mind that being a cyclical asset class, entering at the wrong time can impact returns in the short term.
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