Gold investment: Mirae Asset Investment Managers floats Mirae Asset Gold ETF Fund of Fund

Gold investment: Mirae Asset Investment Managers will be introducing the Mirae Asset Gold ETF Fund of Fund, which is an open-ended fund of fund scheme investing in units of Mirae Asset Gold ETF. The scheme, which will open for subscription on October 16, 2024, aims to provide long-term capital appreciation from a portfolio investing in units of Mirae Asset Gold ETF. The scheme will close on October 22 and will re-open for continuous sale and repurchase from October 28, 2024. The scheme will be managed by Ritesh Patel and Akshay Udeshi (co-Fund Manager).

The Mirae Asset Gold ETF Fund of Fund will offer investors a way to access domestic gold prices by investing in the Mirae Asset Gold ETF. The underlying ETF is backed by physical gold certified by the London Bullion Market Association (LBMA), guaranteeing a purity of 99.5% or higher. 

With lower costs, no storage requirements, and reduced purity risk, this scheme presents advantages over owning gold directly for investment purposes. Gold is commonly seen as a safe-haven asset, providing potential diversification benefits due to its lower correlation with other asset classes and superior performance during times of heightened geo-political and market risk, as well as inflation. By investing in the Mirae Asset Gold ETF Fund of Fund, investors can strengthen their portfolio's resilience during periods of economic uncertainty.

“Mirae Asset Gold ETF Fund of Fund offers investors a simple yet effective way to diversify their portfolios and gain exposure to gold. With gold’s historic role in preserving value during inflationary periods and economic downturns and acting as wealth creator over the long run, this fund aims to provide an opportunity for investors to strengthen their portfolios and navigate challenging times,” said Siddharth Srivastava, Head – ETF Product and Fund Manager, Mirae Asset Investment Managers (India).

Performance of gold

The gold market in 2024 has shown impressive and consistent growth. From January to the end of Q3, the price of gold saw significant increases, culminating in a record high of approximately $2,685 per ounce in the third quarter. Analysts are optimistic about the continued strength of gold, with forecasts ranging from $2,600 to $3,000 by the close of the year. Starting the year at $2,063.73 per ounce, the price climbed to $2,502.53 by August 28, representing a $438.80 increase, or 21.26%, in under eight months.

Returns comparison amongst different Asset class (%)

 Gold v/s Equity v/s Debt