Gold mutual funds have emerged as one of the top performers, with some funds delivering stellar returns exceeding 20% in just six months. Leading the pack, SBI Gold Fund gave an impressive 24% return, while Quantum Gold Savings Fund yielded over 23% in the same period.
As gold prices soar amid geopolitical tensions, experts believe the yellow metal’s rally is far from over, making gold funds an attractive investment option. Several factors have turned positive for gold, fueling expectations of further price appreciation.
Gold mutual funds offer a convenient way for investors to gain exposure to the precious metal without the hassle of a Demat account. These open-ended funds invest in a diversified portfolio of gold-related assets, including bullion, mining stocks, and exchange-traded funds (ETFs), helping mitigate risks.
HSBC Global Research’s gold outlook report highlights that rising geopolitical risks have increased the demand for gold, renowned as a safe-haven asset. Trade frictions and concerns over mounting fiscal deficits are also expected to keep gold supported at higher levels.
Citi Research attributes the gold buying spree among central banks, notably China, and projections of interest rate cuts by the US Federal Reserve as additional catalysts for the surge.
JM Financial Services recommends buying gold on dips, with support levels at 70,400 and 68,000, and expects prices to move higher towards 75,500-76,000 in the short term.
With gold’s shining performance and positive outlook, investors may consider allocating a portion of their portfolio to gold mutual funds to diversify and potentially benefit from the precious metal’s upward trajectory.