Tuesday, November 11, 2008

Need for SIP in Gold ETF mutual fund

Have you ever thought of SIP in GOLD ETF???????

Many of us have started SIP in gold fund which are available in market. We were very happy when NAV of gold fund going up even though equity market were correcting form Jan 2008.

Today we observed that fund sold as gold fund which have no perfect co relation with equity market. We are witnessing a once in a life time global turmoil. We have seen that prevailing gold fund is just like one sector fund, like we were typically investing in sector fund like financial services, power, IT, telecom, healthcare, auto, etc; which invest particularly in one sector of equity market.

After learning lesson from existing basket of gold fund we must look for a fund that have perfect correlation between gold price and NAV of fund. At present we do not have any mutual fund which has perfect positive co relation with price of gold.

At the same time we have gold ETF fund which have correlation with price of gold and price of one unit. But we do not have option to go for an SIP in the same.

In gold ETF investor must have a trading and demat account of his/her. Even after having trading and demat account we cannot go for SIP as there is no such option available in scheme.

We have to every time manually bought on particular day a specified amount of units. Which a normal SIP does with the help of ECS mandate or post dated cheques.

Do you feel there is a need of SIP in gold ETF in your portfolio for asset allocation? What is you say?

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Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)