Things to Consider before investing in Axis Gold Fund

There are multiple investment choices for almost every type of investor. But which investment you should choose should entirely depend on your financial goals. Financial planning teaches investors to determine their short term and long term goals. We are individuals who are emotionally attached to our goals. Some want to build a retirement corpus to remain financially independent in their golden years, others want to send their children abroad for overseas education. Some want to buy a luxurious car while others want to plan a destination wedding for their only child. Although it is true that every individual’s goals are going to differ depending on several aspects, financial goals are generally categorised as short term and long term goals. For example, buying a car comes under short term goals, whereas something like retirement corpus is categorized as long term goals.

If you are someone with a moderately high risk appetite and seeking investment in gold through market linked schemes, you can consider investing in Axis Gold Fund.

What is Axis Gold Fund?

Axis Gold Fund is an open ended fund of fund scheme investing in Axis Gold ETF. The investment objective of Axis Gold Fund is to generate returns that closely correspond to returns generated by Axis Gold ETF.

Benefits of investing in Axis Gold Fund

Here are some of the reasons why one must consider investing in Axis Gold Fund:

• Investors can invest in digital gold through Gold ETF, thus saving them from the hassles of storage.
• Axis Gold Fund offers transparent pricing based on international gold price movements
• Investors can invest an amount they are comfortable with (subject to minimum investment requirements)
• There are no transaction charges on buying and selling* as compared to physical gold
• One can start a monthly SIP of an amount as low as Rs. 1000 in Axis Gold Fund
• One does not need a demat amount to start investing in Axis Gold Fund

Things to consider before investing in Axis Gold Fund

Investment objective

It is necessary for investors to determine whether their investment objective aligns with that of the scheme they are about to invest in. For example, if a xyz scheme’s investment objective is to achieve long term capital appreciation over the long run, but you do not have the patience to remain invested for a period of 5 to 10 years, this means your investment objective isn’t in sync with that of the scheme. Thus investors should make sure that their investment objective is in synchronization with that of Axis Gold Fund.

Risk appetite

A risk appetite is the ability of an individual to take a certain degree of risk with their finances to invest in a scheme so that the particular scheme is able to offer capital appreciation to some extent in near future. Now remember that every mutual fund scheme carries a different risk profile and hence, it is better for investors to determine whether they are ready to take that kind of risk with their hard earned money. Axis Gold Fund is supposed to be suitable for investors with a moderately high risk appetite and hence only if you feel you can risk your investments to that extent, you should consider investing in this mutual fund scheme.

SIP or lumpsum

Axis Gold Fund is available for investors with two payment options – lump sum or SIP. A lump sum payment is a one time investment where an individual invests the entire investment amount in Axis Gold Fund right at the beginning of the investment cycle. A Systematic Investment Plan on the other hand saves the investors from the hassles of making large payments. One can invest small amounts at regular intervals in Axis Gold Fund. SIP might even inculcate the habit of regular investing. If one continues investing in Axis Gold Fund through SIP for the long run, they may benefit from rupee cost averaging as well as from power of compounding. Thus, investors should decide whether they want to invest in Axis Gold Fund via lump sum payment if they want to start a SIP.

These were some of things that investors should keep in mind before investing in Axis Gold Fund. Investors should also remember that Axis Gold Fund does not guarantee any returns. Also if you are someone who doesn’t understand mutual fund investments or if you are completely new to the world of investing, you should seek the help of a financial advisor who might help you make an informed investment decision. Also, do not forget to determine your risk appetite as it might help you understand your investment boundaries.

Axis Gold Fund

An open ended fund of fund scheme investing in Axis Gold ETF

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.