Saturday, December 29, 2012

Mutual fund asset base rise by Rs two-trillion in 2012

After two consecutive years of plunge, the mutual fund industry managed to register a smart turnover in 2012, with its assets base seen nearing Rs 8 trillion with an increase of about Rs two trillion this year.

As some wide-ranging reforms initiated by the market regulator Sebi and the government are yet to translate into true business gains for the investors and fund houses, the industry is hopeful of even better days ahead in 2013.

The total assets under management (AUM) of all the fund houses put together has soared by an impressive 30 per cent on strong inflows in categories such as fixed income, gold schemes and liquid funds, the industry estimates show.

The total industry AUM stood at Rs 6.11 lakh crore at the end of 2011, while the same was about Rs 6.26 lakh crore at 2010-end and Rs 6.65 lakh crore in 2009.

The mutual funds collect money from investors and later invest the same into various market segments including stocks, IPOs (primary market) and bonds.

Industry expects net inflow into mutual funds to further pick-up in 2013 as the government and Sebi have expressed their intention to revive equity culture in the country and help channelise the household income into stocks, mutual funds and insurance sectors, rather than in idle assets like gold.

"The current market conditions and wide-ranging reforms announced by Sebi to re-energise the mutual funds industry would help the sector to channelise funds in the equity market," Sudip Bandhopadhyay MD and CEO at Destimoney Securities said.

He also said that stock market and mutual funds stand to attract more investments from Rajiv Gandhi Equity Savings Scheme, after some initial hiccups.

"We have seen the AUMs increase largely in fixed income and gold schemes," Quantum AMC CEO Jimmy A Patel said.

Birla Sun Life Asset Management Company CEO A Balasubramanian said: "In 2012, the mutual fund witnessed growth in fixed income schemes. Within fixed income schemes, actively managed duration focused funds got inflows.

"In other words, debt funds attracted inflows due to stable to benign interest rate regime. Overnight rates more or less remained above the Repo rate. As a result of this, most of the fixed income schemes including money market mutual fund schemes generated higher returns than Bank fixed deposit return," he added.

Inflows in income and liquid funds have contributed the most to the industry's rising AUM. With inflows of Rs 89,302 crore, money market funds AUM surged to Rs 1.77 lakh crore. A similar trend was seen in liquid funds, where inflows rose to Rs 80,880 crore taking the assets managed by the fund to Rs 3.87 lakh crore.

Similarly, equity funds' AUM rose to Rs 1.65 lakh crore despite registering outflows of more than Rs 9,300 crore. AUM of equity linked savings scheme too increased to Rs 25,027 crore though it saw investors pull out over Rs 1,400 crore this year. Interestingly, equity fund managers of mutual fund industry has betted big on banking space with investments worth more than Rs 42,000 investment, which was 20.59 per cent of the industry's total equity assets under management.

Diversified large cap focused equity funds did well during the year, but few sectors such as private sector banks, MNC companies in the space of FMCG and select pharma have delivered substantially higher than even the index.

Gilt funds saw a rise in assets to Rs 5,426 crore due to inflows of Rs 1,567 crore this year as investors interest in the category has risen in recent months.

Incidentally, Gold ETF assets neared the Rs 12,000 crore mark as the category has seen inflows of Rs 954 crore. The rise in assets was due to inflows and mark to market gains in the underlying commodity.

"Gold AUMs have increased due to a combination of increase in the price of gold as well as continued inflows into Gold ETFs and Gold Fund of Fund Schemes.

"India has always been natural buyer of gold and with the advent of ETF's, more investors are looking at investing in this option (ETF's). Physical gold still retains its charm in India for ornamental purposes," Patel said.

In order to boost the mutual fund industry, Sebi has announced a slew of measures including expanding its distribution network and making investment more simpler and safer, among other steps.

The regulator has made it compulsory for fund houses to make more disclosures in the interest of investors. They are also required to shift to the one plan per scheme model, moving away from the present practice of cluttering one scheme with numerous plans.

At the same time, Sebi decided that any service tax would be charged to the ultimate investor, not to the asset management company (AMC), as is the practice at present.

Although, fund houses would be able to charge their investors a little bit more as incentive for expanding to small cities, but they would also have to set aside a small portion of their assets for investor education and awareness.

Speaking about the next year, Balasubramanian said, "On the basis of change in fundamentals, opportunities would arise from sectors in telecom, power and Industrials as we move into the year 2013."

Source: http://www.indianexpress.com/news/mutual-fund-asset-base-rise-by-rs-twotrillion-in-2012/1051409/0

Thursday, December 27, 2012

50 Ways to Improve Your Finances in 2013

Along with a fresh start, the New Year brings uncertainty about changing tax laws, growing concern over online privacy and security, and challenges for almost every demographic group--even the wealthy, who face steep tax increases. To help you get ready to tackle your own money goals for 2013, we gathered our best advice from the past 12 months and organized it into 50 bite-size steps:

1. Be a year-round discount shopper
Specific holidays used to loom large in the world of coupon hunters, who expected to see massive discounts on July Fourth, Labor Day, Black Friday, and other big shopping days. But recently, that's been shifting as retailers are offering sales all year long, and often at unexpected times. In 2012, for example, retail experts noted that Christmas sales started in October, and continued all season, partly in response to customer demand. That means shoppers should always be on the lookout for the best deals, regardless of the calendar date

2. Ask for what you want
As the economy recovers, retailers are eager to pick up the biggest share of consumers' spending what they can, and in some cases, that means adopting more flexible pricing policies. Towards the end of 2012, several big-box stores, including Target and Best Buy, launched temporary price-matching policies. That trend could continue into 2013, which means customers can be more assertive about asking stores to match prices they find elsewhere

3. Coordinate budgeting with your partner
Much stress can come from disagreeing with your spouse or partner about how you should be spending shared income. Indeed, in author and yoga teacher JoAnneh Nagler's case, it even contributed to divorce. But she and her husband were able to reconcile (and remarry) when they jointly agreed to a disciplined debt-free lifestyle. By scaling back on restaurant meals and other splurges, they're able to invest in what they really value, including their creative pursuits and romantic weekend getaways

4. Pay off debt slowly
When you've built up a sizable amount of debt, it's virtually impossible to pay it off overnight, and attempting such a feat can be frustrating. That's why Nagler, who had $80,000 in credit card debt at one point, urges fellow debt-strugglers to go slowly. First, she changed her spending habits and set up individual savings accounts for each of her goals. Once she got those costs under control, she started paying off her debt

5. Prepare for tax changes
Tax rates are likely to rise for many Americans next year, especially high-earning ones. To lessen the stress from those changes, taxpayers should adjust their spending and saving habits as early as possible to prepare to hand over more cash to Uncle Sam. Taking advantage of any credits and deductions, as well as putting more money into tax-advantaged retirement accounts, can help ease the impact

6. Calculate your retirement number
Just 1 in 10 Americans have done the math to figure out how much they need to save for retirement, but it's an essential step in making sure there's enough cash for those much-deserved golden years. Financial advisers generally recommend saving enough to replace 80 percent or more of your income; that means someone who earns $80,000 should probably save around $2.1 million. Online retirement calculators can crunch the numbers for you

7. Make better retirement choices
Paying high fees, choosing portfolios that are overly conservative (or overly risky), and failing to update or even check on those investments on a regular basis are just a few of the common mistakes people make with their retirement accounts. To avoid missteps, employees can often rely on free services offered through their company's human resources department or retirement services provider. Fidelity, for example, offers free seminars and online information to clients

8. Save a quarter of your income
Alicia Munnell, director of Boston College's Center for Retirement Research, cautions that putting aside 9 percent of your income into a retirement account is "grossly inadequate." Someone who starts saving at age 35, plans to retire at age 67, and expects a 4 percent return, for example, needs to save double that, even after taking Social Security into account. Other financial experts recommend saving as much as one-quarter of your income, in both retirement and after-tax accounts, to make sure you're fully covered

9. Make it automatic
If manually shifting money into savings and investment accounts is too time-consuming or too painful, consider setting up automatic deposits. Many banks make it easy for customers to do that, and, in fact, might even offer rewards for doing so. Wells Fargo, for example, waives monthly service fees on some of its accounts when customers set up recurring automatic transfers

10. Leverage your credit card
If you pay off your credit card bill each month and earn rewards for your spending, don't forget to cash in on them. The biggest bang-for-buck often comes from purchasing retailer-specific gift cards, which have been pre-negotiated by card companies. Farnoosh Torabi, financial expert and television personality, recently picked up an Apple Macbook Air with her points, which she also uses to buy gift cards for family members.

11. Find your perfect piece of plastic
If your credit card isn't meeting all your needs, it might be time to find one that does. Comparison websites such as nerdwallet.com, indexcreditcards.com, and creditcards.com make it easy to compare the benefits of different cards to figure out which one suits your needs. If you carry any sort of balance, there's only one factor to focus on: finding the lowest interest rate

12. Upgrade your bank
Bank policies can vary widely, from offering above-average interest rates on savings accounts to making it easy to budget online with extra tools. Consider your own lifestyle and then find the bank that best matches it. If you travel a lot, you probably want a large bank with thousands of ATMs throughout the country (and beyond). If you're trying to save more, then you might want to focus on the savings rates

13. Demand more from the one you have
Customers are increasingly voting with their feet and switching banks when they're not happy with their current one. That also means customers have more leverage to ask for the changes they want from their current bank, as banks struggle to retain loyal customers. If you want lower fees or a higher interest rate on your savings account, ask your bank what they can do for you--they might be able to offer you a better deal than the one you're currently getting

14. Consider a credit union
Frustration with banks' policies, such as new fees, has motivated thousands of customers to jump ship and join credit unions, according to the Credit Union National Association. It can be a good decision, especially considering that credit unions often offer higher interest rates on savings accounts as well as lower fees and lower rates on auto loans and mortgages. They also prioritize spreading financial literacy to their customers

15. Get a raise
Just because the economy's struggling to make its big comeback doesn't mean you have to delay asking for a raise. Certified financial planner Lauren Lyons Cole suggests first checking out salary-comparison sites, such as Payscale.com and Salary.com, to see if your own income is out of whack with that of your peers. If it's lower than it should be, review your accomplishments and present them to your boss, along with a request for a raise

16. Earn more money on the side
The lack of job security these days has inspired many Americans to pick up a second stream of income by moonlighting. According to the website Payscale.com, the highest-paid moonlighting gigs are in law, clinical psychology, senior copywriting, and information technology security. Freelance website Elance.com predicts that the trend toward freelancing, especially in the creative-services sector of the economy, will only grow throughout 2013

17. Manage your time better
When people juggle more than one job, they can quickly feel overwhelmed with responsibilities. Veteran job-jugglers say they survive by staying organized, waking up early, and avoiding time-wastes such as television. Many also work on the weekends and some even take a sabbatical from their day jobs to focus exclusively on their second job for a few months

18. Take advantage of your HR department
When you land a new job, the human resources department can help you sign up for all of the new benefits, from flex spending accounts to health insurance to retirement accounts. Signing up for retirement benefits as soon as possible can pay off later: The earlier you start putting money away, the sooner it can start growing. TD Ameritrade calculates that saving $100 a month between ages 21 and 41 will create a nest egg of $471,358 by age 67, assuming a return of 8 percent per year. Waiting until age 41, however, will generate just under $60,000

19. Prepare to earn less after 40
If you want more motivation to ramp up that side income in 2013, here it is: In most professions, income stops rising around age 40. Payscale.com reports that in many professions, you earn quickly in your twenties and thirties as you become more valuable. Then around mid-career, you plateau, and as a result, salary increases slow down. (Certain careers, including those in law and high-tech, are exceptions.) One way to make up for that loss is to earn more money outside your full-time job

20. Burnish your entrepreneurial skills
According to a survey by Generation Y research and consulting firm Millennial Branding, 1 in 3 employers want their employees to have entrepreneurial experience. Knowing how to conceive, build, and promote a business idea is increasingly valuable in the new economy, even for those seeking more traditional jobs.

21. Learn to cook
Replacing take-out and restaurant meals with home-cooked goodness can save you hundreds of dollars throughout the year. If you feel hesitant in the kitchen, a few hours with the Food Network or browsing foodie blogs will help get you in the mood. Investments in certain tools, such as cookbooks, immersion blenders, or quality pots and pans can also make the kitchen more enticing after a long day

22. Invest in your home entertainment system
If you're a movie buff, you have a lot of new choices that are cheaper than seeing movies in the theater. Hulu Plus, Apple TV, and Roku are among your relatively affordable options, especially when you consider how much you'll save by skipping weekly trips to the theater

23. Focus on home improvements that pay off
Leaky windows and attics can drive up heating bills in the winter and cooling bills in the summer. Consider investing in insulation as well as a programmable thermostat, which can cut energy costs by 30 percent over the year. Smart power strips, which cut power to electronics when they're off, can also help reduce electricity costs. LED lights are another smart option

24. Give better gifts
Do you know what people really want for holidays and their birthdays? Money or gift cards. It might sound impersonal, but a survey by Discover found that such fungible items top wish lists for both men and women. In fact, the National Retail Federation went so far as to name gift cards as the hottest gift of 2012, because they've grown so much in popularity. The fact that fewer cards come with fees and many offer extra loss protection has also contributed to that trend

25. Get to know the holes in your homeowners' insurance policy
The worst time to discover that your homeowners' insurance policy doesn't include reimbursement for water damage is right after a flood. Yet many homeowners don't understand the ins and outs of their policies, which can lead to nasty surprises. In fact, most standard policies don't cover earthquake damage, flood damage, or water damage from sump pump backups. (Homeowners have the option of adding supplemental coverage to handle these scenarios.)

26. Protect your online identity
The past 12 months have seen a series of high-profile security breaches, including at Zappos and Barnes & Noble. To make sure you're as protected as possible, consider changing your passwords regularly, reviewing bank account statements each month to check for errors, and being especially wary of hyperlinks to deals promoted over social networking sites. Hyperlinks embedded within emails should also be treated with suspicion

27. Stop before you shop
When you're surrounded by advertisements and material temptations, it's easy to buy without thinking. But one organization, Jews United for Justice, urges people to first ask themselves a series of questions about the purchase. The questions include: "Is this something I need?" "Can I borrow, find one used, or make one instead of buying new?" and "Will this purchase enhance the meaning and joy in my life?" The group distributes credit card sleeves with the questions to encourage more thoughtful spending habits

28. Ignore official-looking (but dubious) solicitations
It's one of the most common scams around: A company poses as an official government agency in order to solicit your attention (and funds). It might send out mail that's covered in intimidating warnings, such as "$2,000 fine, 5 years imprisonment, or both for any personal interfering or obstructing with delivery of this letter." But they're really just trying to sell you something you probably don't need. The Federal Trade Commission calls the practice outrageous and says it's illegal to falsely suggest something bad will happen unless the recipient asks quickly. The bottom line: Ignore such solicitations

29. Donate for free
You don't have to be rich to be charitable. Consider donating your blood, gently used books and CDs, and your time this year. For extra power, get together with friends to form a giving circle, so you can leverage your dollars and give to causes together

30. Learn how to talk about money with your kids
Parents are famously awkward when it comes to talking about money. A T. Rowe Price survey found that just half of parents talk to their kids about savings goals and spending and savings trade-offs, and even fewer discuss higher-level concepts such as inflation and investing. But research routinely suggests that parents play a powerful role in how kids handle money as adults, so if you have children, try to get over your awkwardness to share some important life lessons this year.

31. Protect your money from your children
Baby boomers have been generous toward their adult children, inviting them to move back home and offering them direct financial support. But often, that kind of generosity hurts parents' own retirement nest egg. In fact, even the parents of two Olympic gold medalists, Gabby Douglas and Ryan Lochte, revealed major financial troubles of their own. Before putting their own financial security at risk, parents should consider whether they can really afford the help they're offering

32. Use technology to ease those conversations
If you're struggling to explain the concept of limits to your children, there's an app that can help: "Can I Buy?" designed by the husband-and-wife team behind the Massachusetts-based developer Sqube. After crunching some numbers for you, the app tells you whether or not you can afford that purchase that you're considering. The creators themselves got the idea when they were trying to explain to their young daughter why she could not buy a new toy

33. Take advantage of other new online money tools
A new website, SmartAsset.com, hit the Web this year, and it's a useful one: It helps users make complicated personal-finance decisions, such as whether they should buy or rent, or which mortgage to take out. If you're looking for some help with number-crunching, the site could be the one for you. Mint.com is another useful site for budgeting and getting organized

34. Check your Social Security benefits
Since the Social Security Administration stopped sending out paper statements via snail mail each year, you might be missing your annual estimate of just how much Social Security income you're likely to receive in retirement. But there's an easy way to get that information: Visit socialsecurity.gov/mystatement to see your earnings history and projected future benefits. More than one million people have already done so

35. Be an alpha consumer
Jon Yates, the official problem-solver at the Chicago Tribune and author of What's Your Problem? Cut Through Red Tape, Challenge the System, and Get Your Money Back, says persistence is often the most important factor when seeking a response from a company. That might include threatening to take your business elsewhere, or asking to speak to a manager or executive until you get the answer you want

36. Start a social media account
Airing grievances about specific companies on a blog, Facebook, or Twitter can also be an effective way of getting their attention. Just be sure you don't sacrifice your own privacy and security in the process. Many banks, for example, run active Twitter accounts, but they caution customers to take specific questions off the public venue and onto a phone line or email account. Talking over social media, after all, means talking in front of an audience

37. Pay less for gas
In addition to seeking out the lowest-priced gas station in town, you can also stretch your gas dollars through more creative means. Those include lightening your car by unloading any heavy items stored in the trunk, carpooling, making sure tires are properly inflated, and replacing clogged air filters. An even safer bet is replacing some of your car time with public transportation or biking

38. Refinance, or not
When interest rates are low, refinancing to lock in a lower rate on your mortgage is tempting. But doing so also comes with costs, including closing costs and your own time. (Completing the paperwork can take hours.) Before jumping on the refinancing bandwagon, crunch some numbers with an online refinance calculator to help you figure out if it will really save you money

39. Improve your credit score
Credit scores can hold a lot of power over your life; they influence your loan rates and the ability to rent apartments, and they can even play a role on job applications. According to money expert Liz Weston, author of Your Credit Score, the most important steps you can take to improve your score include removing any errors and making regular, on-time payments to all revolving accounts, including credit cards. Paying down debt helps, too

40. Get your credit report
You're entitled to a free credit report every year, which you can access through annualcreditreport.com. Reviewing it regularly makes it possible to check for (and correct) any mistakes, as well as catch potential problems, such as identity theft, before they escalate. The Consumer Financial Protection Bureau also announced this year that it will start supervising the credit bureaus as part of an attempt to make the world of credit scores and credit reports more transparent to consumers.

41. Learn patience
Research co-authored by Columbia Business School professor Stephan Meier found that impatient people tend to have lower credit scores, which means they pay more for loans. Study participants who were most willing to wait for their cash rewards had, on average, scores that were 30 points higher than those who were the least patient. The suggestion? Learning to wait for rewards can pay off in the form of lower loan rates

42. Check your insurance policies
According to MetLife, just 3 in 4 married couples with young children have life insurance. That means 1 in 4 do not. Given the high cost of raising children (the Agriculture Department estimates $234,900 per child before age 18), that leaves families in a vulnerable position if one or both parents were to die. While there's some hassle involved, the cost of taking out life insurance is relatively low (a half-million dollar policy on a healthy 35-year-old might be one dollar a day, says MetLife), so consider signing up if you haven't already

43. Organize your financial paperwork
When Superstorm Sandy hit in 2012, thousands of people on the East Coast had to quickly leave their homes. If your paperwork is in order, it will be easy to know what to grab if you suddenly have to do the same thing. Essential papers to carry with you include identification, insurance information, and family documents, such as birth and marriage certificates and wills

44. Create photographic evidence
Just in case you ever have to file an insurance claim, take photos of your most valuable possessions, including furniture, jewelry, and televisions. Creating a paper trail of those goods, any damage they sustained, and subsequent claim filings can make it easier to follow up with the insurance company and collect reimbursements

45. Prepare for emergencies
In the spirit of always being ready, consider coming up with a plan for an alternative place for your family to stay in an evacuation scenario. When the power goes out, it's harder to find the closest available hotel, or to talk to friends about staying with them. It's also a good idea to get an emergency kit together, so if you have to hunker down in your basement for a few days without power or running water, you know you could survive. The kit should include batteries, flashlights, water, changes of clothes, cash, non-perishable food, and a first-aid kit

46. Beef up your emergency savings account
No matter how prepared you are, emergencies can end up costing a lot of money. Consider funding an emergency savings account that could cover you in the event of weather disasters, car breakdowns, and other unexpected calamities. Financial advisers generally recommend putting away three to six months' worth of expenses

47. Plan to work well past retirement age
Older Americans are increasingly working into their 70s, for financial as well as psychological reasons. In other words, many of them enjoy their work. A Charles Schwab survey found that one in three 60-something middle-income workers don't want to retire. To prepare for a long career beyond age 65, career experts recommend making sure you're doing work you love. That might mean launching a second career, unrelated to your primary one

48. Change your habits
In his book The Power of Habit, New York Times reporter Charles Duhigg explains how we can change our habits by focusing on the cue and reward. If you want to start exercising every day, for example, "cue" it up by putting on your running shoes before breakfast, and then reward yourself afterward with a piece of chocolate. Eventually, the new habit will become a natural part of your day

49. Check out your older self
Here's an easy way to motivate yourself to commit to big changes in 2013: Focus on your future self. Research by Hal Hershfield, assistant professor of marketing at New York University's Stern School of Business, has found that showing people aged photos of themselves makes them more likely to put money away for later. You can get in touch with your future self by writing a letter or even downloading an aging app, such as AgingBooth, for a sense of what you'll look like in 30 years. Spending more time with your grandparents can also help

50. Think about where you want to be (financially) in a year
When you're brainstorming for your big money goals for the year, try to focus on specific steps, instead of big, overwhelming dreams. For example, if you want to build financial security, goals might include spending less on food or developing a second stream of income. BJ Fogg, director of Stanford's Persuasive Technology Lab, suggests breaking big goals into small baby steps

Here's to a prosperous 2013!

Source: http://in.finance.yahoo.com/news/50-ways-improve-finances-2013-155537722.html?page=all

Wednesday, December 26, 2012

A lesson in mutual fund investment

Mutual funds are one of the most preferred vehicles of investment for the kind of appreciation and ease of investing it offers. Exposure to any kind of financial instrument like equities, debt or any money market instrument is possible through Mutual Funds. Before deciding on investing in MFs, ponder upon the tax provisions for the particular category and see if it suits your portfolio.

Tax implications on mutual funds arise on two occasions: Dividend paid out by mutual fund and gains arising from sale of mutual funds.

Equity Mutual Funds
Equity mutual funds are found in the portfolio of most investors. Within the umbrella of equity mutual funds, there are many sub categories like the Large-cap fund, Mid-cap fund, Blue Chip funds, Small-cap funds, etc. An equity scheme is one which holds at least 65 per cent of its exposure to equity. To avail tax benefits the equity holdings cannot fall below this level. However, the tax treatment remains same for investors of all categories of equity mutual funds.

Dividend payout: Dividend received by a mutual fund is not taxed in the hands of an investor or the mutual fund company.

Short-term gains: When mutual fund units are sold before the completion of one year, the gain made is called as short-term capital gain. This is taxed at the rate of 15 per cent irrespective of the income tax slab that you fall under. A 3 per cent cess is also levied bringing the tax rate to 15.45 per cent.

Long-term gains (LTCG): If the units in equity mutual funds are sold after a holding period of one year, the gain made is Long-term capital gain. LTCG in case of equity mutual fund is exempt from tax.

Debt Mutual Funds
The tax structure for debt mutual funds varies quite a bit from the equity mutual funds.

Dividend payout: The dividend income is not taxable in the hands of the unit holder. However, the mutual fund house needs to pay a dividend distribution tax of 13.519 per cent (12.5 per cent + 5 per cent surcharge + 3 per cent cess) before payment of dividend to its investors. Though this tax is to be paid by the mutual fund, it is passed over to the investor.

Short-term capital gains: The holding criteria for debt mutual fund remain same as in equity-oriented funds. Any gain realised before the end of one year is added to the income of the investor and taxed at appropriate rate. For eg: Anita sold her debt mutual fund before the end of the year and made a short term gain of Rs 50,000 and she falls in the 20 per cent income tax bracket. So her gain will be taxed at a rate of 20.6 per cent (inclusive of cess).

Long-term capital gains: Any gain realised after one year in case of debt mutual fund falls under the category of long-term capital gains. But unlike equity mutual funds, long-term capital gains from debt mutual funds are taxed at 10 per cent without indexation or 20 per cent with indexation.

Money Market Mutual Funds
These funds invest in very short tenured debt instruments ranging from one day to one year. They offer instant liquidity to its investors and often used to park funds, which are needed after a very short period. The tax treatment for investors remain same as in debt mutual funds.

Gold Mutual Funds: 
The taxation rules remain the same as debt MFs for gold mutual funds.
It is very important to understand the effect of each category of mutual fund before investing so that you can maximize your post tax returns.

Source: http://www.indianexpress.com/news/a-lesson-in-mutual-fund-investment/1049341/0

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