Mirae Asset Mutual Fund has introduced a new fund offering—Mirae Asset Gold ETF Fund of Funds (FoF). The fund provides an accessible way for investors to benefit from gold without having to buy or store physical gold. This open-ended fund invests directly in units of the Mirae Asset Gold ETF, offering a convenient investment opportunity. The New Fund Offer (NFO) period starts on October 16, 2024, and will close on October 22, 2024.
Investors can begin with a minimum lump sum investment of Rs 5,000. However, for those who prefer systematic investments, the SIP starts at just Rs 99 per month, making it highly affordable. The NFO will reopen for regular investments on October 28, 2024.
Key Highlights of Mirae Asset Gold ETF FoF NFO
- Fund Name: Mirae Asset Gold ETF Fund of Funds
- NFO Period: October 16-22, 2024
- Reopen Date: October 28, 2024
- Minimum Investment: Rs 5,000 initially, additional investments in multiples of Rs 1
- SIP Amount: Starts at Rs 99 per month
- Linked ETF: Mirae Asset Gold ETF
- Riskometer: High
Why Consider Mirae Asset Gold ETF FoF for Your Portfolio?
This FoF offers an easy way to invest in gold without dealing with the complications of buying, storing, or insuring physical gold. It invests in units of the Mirae Asset Gold ETF, which holds gold with a purity of 99.5% or higher, certified by the London Bullion Market Association (LBMA). As a result, investors can benefit from gold’s potential growth while avoiding risks like purity issues or storage concerns.
Additionally, since gold typically performs well during economic uncertainties, this fund can act as a hedge against inflation and market volatility, adding stability to your portfolio.
Gold Investments Help in Diversifying Your Portfolio
Gold has a low correlation with other asset classes, such as equities or bonds. During periods of market fluctuations or economic crises, gold prices tend to rise, making it an excellent diversifier. Adding gold to your portfolio through this fund can bring more stability, especially when other investments underperform.
SIP Option Makes Gold Investment Easier
One of the standout features of this fund is the option to invest through a SIP, which isn’t available in traditional gold ETFs. With a minimum SIP of Rs 99, investors can gradually build wealth in gold without committing to a large one-time amount. This flexibility allows more people to benefit from gold’s long-term growth potential.
The SIP structure also promotes disciplined investing by encouraging regular contributions. Over time, these small investments can grow into a significant fund, thanks to the power of compounding.
Who Should Invest in Mirae Asset Gold ETF Fund of Funds?
This fund is ideal for those looking to benefit from gold investments without the hassle of managing physical gold. It suits investors seeking long-term growth and portfolio diversification. The fund’s low entry barrier, with the Rs 99 SIP, makes it a great option even for beginners or those with limited budgets.
However, since this scheme is rated as ‘high risk,’ investors should consider their risk appetite and financial goals before investing. Consulting with a financial advisor can help determine if this fund aligns with your overall investment strategy.
Disclaimer: This article is for informational purposes only. Please consult with your financial advisor before making any investment decisions
