To become rich, diversification is more important. Investment should be in stocks, mutual funds, real estate and gold. You should have 20% to 40% of your investment in gold. Gold is considered as best safest investment in India. Gold is considered as investment, usable ornaments and emergency funds.
Keep the emergency funds in gold and you can pledge the gold in case of emergency. Buying physical gold is highly recommended. But buying gold requires lumpsum money. Here we would discuss how to accumulate gold in long term.
1. Buy a gram or 2 gram gold coin every month (or)
2. Invest in gold mutual funds with monthly 1000 rupees.
Each month buy one gram gold:
In case you are able to invest monthly more than 4000 rupees in gold, buy one gram gold every month. Accumulate to become 20 gram and convert it to ornaments. Repeat this and save 200 grams of gold for emergency. Try to increase your monthly contribution and save 500 grams gold as long term investment.
200 grams gold as emergency funds and 300 grams gold as investment.
Invest in gold mutual funds with monthly 1000 rupees:
Gold ETF mutual funds help to invest in gold in SIP. You can start invest with monthly 100 rupees in Nippon India Gold Saving Growth Direct fund. It allows you to invest monthly 100 rupees. But you start with monthly 1000 – 1500 rupees in gold mutual funds. The money is invested in gold. Once it become lumpsum money, withdraw and buy physical gold. Otherwise you keep on invest in gold mutual funds as it grows based on gold price.
The following are gold mutual funds. You can invest monthly 1500 to 2000 rupees in any one of the mutual funds.
Kotak Gold Growth Direct Fund:
The investment objective of the fund to generate returns that are in line with the returns on investment in physical gold. You can start with monthly 1000 rupees in this fund. This fund provided 30% returns for last 1 year investment.
HDFC Gold Growth Direct fund:
The investment objective of the fund to generate returns that are in line with the returns on investment in physical gold. You can start with monthly 500 rupees in this fund. This fund provided 18% returns for last 3 years investment.
SBI Gold Growth Direct fund:
This fund seeks to provide returns that closely correspond to returns provided by SBI – ETF Gold. You can start with monthly 500 rupees in this fund.
Nippon India Gold Saving Growth Direct fund:
You can start with monthly 100 rupees in Nippon India gold saving growth fund. Better to invests monthly 1500- 2000 rupees in gold fund to get better returns from the investment.
Gold mutual funds provides easy way to invest in gold. It is easily accessible for everyone. Start your investment today in gold. Happy Investing:)