DSP Mutual Fund launches DSP Gold ETF Fund of Fund
Mumbai, Nov 2, 2023: DSP Mutual Fund announced the launch of DSP Gold ETF Fund of Fund (the scheme) an open-ended Fund of Fund scheme investing in DSP Gold Exchange Traded Fund (ETF). The scheme offers investors a convenient way to invest in gold like a normal mutual fund scheme, compared to the physical version, with the freedom to trade easily.
Gold is in focus due to global liquidity drying up, increased demand from Central banks’, combined with supply of the metal remaining stagnant. Investments in gold have typically done well at a time when there is a weakness in the dollar. Gold also has a historical negative or low correlation with equity which also makes it a good option to diversify away from equity. DSP Gold ETF Fund of Fund offers the advantage of owning Gold in a convenient digital form without the requirement for a demat account to transact. It also presents a systematic way to invest in Gold via SIPs along with the flexibility of redeeming the units without any lock-in period.
Holding gold in one’s portfolio also helps to smoothen one’s investing journey as Gold is an asset class whose prices typically move in a different direction from other asset classes. Hence, having gold in one’s portfolio helps investors diversify their portfolios, which helps it fall lesser during times of a downturn. However, one should bear in mind that being a cyclical asset class, entering at the wrong time can impact returns in the short term.
The New Fund Offer for the DSP Gold ETF Fund of Fund opens for subscription on November 3rd, 2023, and closes on November 10th 2023.
“Gold is a great addition to a typical equity – debt heavy portfolio due to the low correlation to these asset classes. The scheme structure presents a convenient way to diversify your portfolio and accumulate gold in a systematic manner, automatically adding depth and multi-dimensionality to your investments,” says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.
Find out more about the fund here.