Reliance mutual fund has launched "Reliance Gold Savings Fund". Since Gold ETFs were launched the uncertainty in purchase and sale of gold as a investment has been removed and investor could invest in gold without being concerned with the purity of gold, how to store the gold safely and also where to sell it finally.

But investing in gold ETF had certain drawbacks.

• Investor needs a Demat Account
• Investor needs to approach a broker to buy ETFs ,
• If the investor is not a regular stock investor , these would have just added to the investors overhead expenses.

 Now the investors have an alternative ."Reliance Gold Savings Fund". This is a fund of fund , which means it invests in other mutual funds. and this Reliance fund will invest only in Gold ETF

Pros

• Investor does not need a demat account
• Investor does not need to approach a broker
• Investor can start a SIP in gold investment

Cons

• Invests only in Reliance Gold ETF , though there are other Gold ETFs in the market
• Annual charges of ETF and Annual charges of "Reliance Gold Savings Fund" need to be borne by the investor

I would have liked if the "Reliance Gold Savings Fund" had kept its mandate open to invest in any Gold ETFs , but it has not done so . I'am not comfortable with this because , this means my investment is entirely concentrated with Reliance Mutual Fund and this fund house is currently not in pink of health

I would suggest investors to wait and watch , i'am sure other AMCs would come up with similar offerings , where the ETF invested into may be across different Mutual fund houses and not concentrated

Download "Reliance Gold Savings Fund" details here

Image : FreeDigitalPhotos.net,Photographer: dan