Akshaya Tritiya is Your Time to Buy Gold, Differently! Wednesday, Apr 18, 2018
When it comes to festivals in India, we have festivals for every season (and reason☺). We celebrate these festivals with food, family, light & laughter. Gold also plays an important part of our celebrations. Three festivals that resonate gold buying season are Diwali, Dusshera and Akshaya Tritiya, which is being celebrated today.
The word "Akshaya" denotes something that never diminishes and in India traditionally, gold is considered as an embodiment of permanent value - hence beginnings made, or valuables bought on this day are considered to be auspicious - certain to bring luck and success in material terms.
Should you Buy Gold on Akshay Tritiya?
As it is Akshaya Tritiya today, you are still contemplating if it is a good idea to buy gold or not. Let not only your emotional side of buying gold on Akshay Tritiya guide you but your practical side too as the US Fed, geopolitical risks and macroeconomic environment may help you take a decision!. Although Gold is India’s one of the most favorite investment avenues, the price of gold that we pay is affected by several global economic factors.
The Practical Side
The US Federal Reserve’s monetary policy event is shaping up into a peculiar gold trading pattern especially when markets gear-up for a rate hike. The recent rebound in gold prices was led by the fact that the US Fed indicated it would stay the course presented a much more dovish tone then many market participants feared. In his first press conference since becoming chairman of the Federal Reserve, Jerome Powell said that policy makers “don’t have the ability to see that far into the future” and advised investors against reading too far into the central banks’ 2020 projections for interest rates.
However, global turmoil is once again proving good for gold. U.S. President Donald Trump’s insistence that he would not back down to threats of a trade war over proposed metal tariffs fueled anxiety across global markets. Should there be a “deep trade war,” with ramifications for global growth, industrial commodities such as base metals, energy will be negatively affected, but that scenario would benefit gold.
We are not in any way suggesting that gold cannot correct. Aggressive Fed tightening or even a hawkish rhetoric may be enough to see gold correct. However, the downsides will be capped given the geopolitical backdrop.
Therefore, given the macroeconomic picture, gold will be a useful portfolio diversification tool and thereby helping you to reduce overall portfolio risk. So this Akshaya Tritiya an investment in gold for a long term is what investors could definitely look at. Generally, around 10 - 15% allocation of gold in your portfolio is advisable.
Buy Gold this Akshay Tritiya - But the Smart Way!
Moreover, like always we want you to switch from the traditional gold buying methods to the easy, smart and viable investment avenue. Gold ETFs. At Quantum, we want you to explore the ETF way of buying gold. Make the auspicious beginning of your gold investments this time with Quantum Gold Fund (ETF).
While the gold is of a purest quality in case of ETFs, the BIS (Bureau of Indian Standard) survey has revealed it in the past that there is some purity issues with the gold that we buy in physical form. The expenses when it comes to mutual fund will be very less than the mark-ups and making charges that will be charged by the jewelers. More importantly ETFs are well regulated by SEBI.
It is always better to invest in gold - (ETFs) which are as good as gold and gives investors the luxury to buy gold in just a few clicks without worrying about the quality aspect of it. Through the lower cost of operations and the availability of units having smaller denominations, gold ETFs would provide investors an excellent means of asset allocation.
A gold ETF seeks to offer investors its units issued only in dematerialized form through depositories. To avail the same investors should have a Demat/beneficiary account with a DP. However, investors who do not have a demat account but wish to invest in gold through mutual funds can invest through Quantum Gold Savings Fund. It also could be bought in small amount, as against physical gold. Investors can start their investment in Quantum Gold Savings Fund with as less as Rs. 500/- . These funds have an added benefit, which offers investors a simple way to regularly invest in gold through Systematic Investment Plans (SIP). Quantum Gold Savings Fund gives the convenience of investing in gold through SIP facility.
So make an auspicious beginning this Akshay Tritiya – buy gold by investing in the Quantum Gold Fund ETF or the Quantum Gold Savings Fund. Do call us on 1800-22-3863 in case you have any queries on how you can go about making this Akshay Tritiya truly auspicious by investing in gold the smart way.
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 Scheme Replicating / Tracking 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 Fund Scheme Investing in Quantum Gold Fund )
|• Long term returns|
• Investments in units of Quantum Gold Fund – Exchange Traded Fund whose underlying investments are in physical gold
The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
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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.