Akshaya Tritiya - An Auspicious Day to Buy Gold Wednesday, Apr 26, 2017
The word "Akshaya" means imperishable or eternal - that which never diminishes. Initiations made or valuables bought on this day are considered to bring success or good fortune. Buying gold is a popular activity of Akshaya Tritiya, as it is the ultimate symbol of wealth and prosperity. It is considered auspicious for starting new ventures like starting a business, construction, etc. This one day event is considered as a "Golden Day" for Hindus and Jains who stock up on the yellow metal and tend to organize weddings and other festivities around the day.
Most people end up buying jewelry on this auspicious day, but that has its own pitfalls. Jewelry incurs making charges and plus gives you the additional headache of storing it away from prying eyes! ☺ Also when you sell jewelry, you will always be paid less than the market price of gold since the purity of gold used to make the jewelry is often called to question.
So how should you invest in Gold, this Akshaya Tritiya?
Our answer: through the paperless route, by investing in ETF's or Gold Savings Funds.
It is a known fact that Gold ETF's are highly efficient investment vehicles due to a host of advantages they offer. Gold ETF's are price efficient. One can avoid the huge markups associated with buying physical gold, even buying lower denominations as low as half a gram. The most important thing to note is that Gold ETF's are backed by physical gold, making it as good as gold with the additional advantage of being a hassle free investment. One doesn't have to worry about the storage, purity and safety of the gold. It is held by the custodian in secured vaults and there is an insurance cover for all the gold as well.
You need to buy it in a similar way you would buy an equity share. As you invest in a Quantum Mutual Fund, then you can opt for Gold Savings Funds which are nothing but a logical extension of Gold ETF's.
The only issue is that with Gold ETF's, you can get delivery of physical gold above a certain size like 1 Kg and in multiples thereof. Since, these forms are ideal way to own / invest in gold, one should only look at converting it only when they want it for actual consumption. Say for example one needs to buy a set of jewelry for her marriage, then she can sell her gold funds and use that cash to buy the jewelry. Until then she can keep them in form of Gold ETF's / Gold Savings Funds. Currently jewelers do exchange jewelry for physical gold, and it is hoped that one day they may extend that courtesy to Gold ETF's as well. This will pass on the efficiency and transparency of Gold ETF's to the actual users of gold.
Here is a summary of features for the Quantum Gold Fund ETF (QGF ETF) and the Quantum Gold Savings Fund (QGSF):
|Quantum Gold Fund ETF||Quantum Gold Savings Fund|
|Affordable: Only Gold ETF where 1 unit represents ½ gm gold||Diversified: Helps diversify your money in gold, an important hedge against investments in equity and fixed income|
|Pure: Backed by gold of 0.995 finesse||QGSF enables investments in gold through SIP or STP of as little as Rs. 500/month|
|Convenient: Call your broker to buy 'QGOLDHALF' (S&P BSE & NSE code) like an equity share through your trading account||No need for demat account: It does away with the need to open a demat account as in the case with Gold ETFs|
|Value: Trades like an equity share on the exchange - in tandem with domestic gold price. It does not suffer from gold-related problems like storage and theft as the fund house takes care of all risks of storage and safety for a minimal expense ratio||Minimal expense ratio: QGSF does not suffer from gold-related problems like storage and theft as the fund house takes care of all risks of storage and safety for a minimal expense ratio|
|Protection: The gold is stored in secure vaults and also insured||Quality: QGSF ensures quality of gold is up to the mark as it invests in Quantum Gold Fund where the gold is sourced from London Bullion Market Association approved refiners|
So this Akshaya Tritiya invest in Gold in the right way! Invest in the Quantum Gold Fund ETF or the Quantum Gold Savings Fund, the choice is yours!
Click here to Know More about the Quantum Gold Fund ETF
Click here to Know More about the Quantum Gold Savings Fund
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|Quantum Gold Fund ETF|
(An Open-ended Exchange Traded Fund - Gold)
|• Long term returns|
• Investments in physical gold
Investors understand that their principal will be at Moderately High Risk
|Quantum Gold Savings Fund|
(An Open-ended Fund of Funds Scheme)
|• Long term returns|
• Investments in units of Quantum Gold Fund - Exchange Traded Fund whose underlying investments are in physical gold
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Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.