Gold and silver ETFs best bet for diversified investments

Digital gold is a virtual method of buying and investing in yellow metal without having to physically hold the gold. Buying physical gold has certain downsides. Firstly, there is the issue of identifying its purity and legitimacy. And, secondly, there are challenges associated with safekeeping and storage.

Hyderabad: Of late, people are showing interest in investing in gold digitally. Without limiting investments to equities, people are trying to expand their investment options. Like earmarking some amount to invest in gold and silver.

For such investors, Motilal Oswal Mutual Fund has unveiled Motilal Oswal Gold and Silver Exchange Traded Funds (ETFs) recently. The NFO of this scheme will come to an end on November 7. The minimum investment in this NFO is pegged at Rs 500 while Abhirup Mukherjee is the fund manager. Under this scheme, gold and silver ETFs of other mutual funds are also bought here.

Other options for gold investments include ICICI Prudential Gold ETF, Nippon India ETF Gold Bees, SBI-ETF Gold, Kotak Gold ETF and HDFC Gold ETF to mention a few. Whereas for silver schemes, ICICI Prudential Silver ETF, Nippon India Silver ETF and Aditya Birla Silver ETF could be checked out.

Out of the total investment amount, 70 per cent could be earmarked for gold ETFs and the remaining amount could be allocated for silver ETF units. These schemes are meant for investors, who intend to diversify their investments. Aditya Birla Sun Life Mutual Fund has unveiled an innovative fund with a plan of diversifying investments through a single mutual fund scheme.

That is Aditya Birla Sun Life Multi-Index Fund of Funds (FOF) and this fund offer is set to close on November 10. The minimum investment is fixed at Rs.100. It is an open-ended scheme and Vinod Bhatt is the fund manager for the scheme. A 'Fund Of Funds' (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. They also invest in attractive gold and silver schemes.

The fund manager will take a call on what to invest and how much to invest depending on the circumstances. It can be said that this fund provides an opportunity for investors to put their money in different instruments through a multi-index fund of funds without having to choose different schemes on their own.