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Mutual Fund Houses Rush to Launch Gold-Related Schemes

Strategic Insights

— 1 min read

As gold prices continue to rise and investor interest grows, mutual fund houses are seizing the opportunity to launch gold-related schemes. Kotak Mutual Fund is set to introduce its second gold fund, while Sundaram BNP Paribas AMC and SBI Funds Management are gearing up to add gold fund products to their portfolios. The move comes as stock markets decline, and gold generates returns of nearly 20% in the last one year, making it an attractive investment option.

Key Takeaways:

  • Kotak Mutual Fund is launching its second gold-related scheme, a fund of funds, while it already has an existing ETF.
  • Sundaram BNP Paribas AMC plans to launch its gold fund product after June, once the elections have concluded and volatility subsides.
  • SBI Funds Management is looking to add a gold fund product to its portfolio, citing growing demand from investors and the asset class's potential to generate returns.
  • Fund houses are rushing to launch gold-related schemes due to rising gold prices and investor interest, with the World Gold Council estimating gold to be the only asset class generating returns.
  • Gold prices have generated close to 20% returns in the last one year, making it an attractive investment option for portfolio diversification.
  • Mutual fund houses claim to have received demand for launching gold funds through market research and inputs from brokers.
  • Even with a temporary softening of gold prices, the outlook for gold remains positive according to the World Gold Council.

Statistics:

  • Gold prices have generated close to 20% returns in the last one year.
  • The World Gold Council estimates gold to be the only asset class generating returns.
  • Kotak Mutual Fund has an existing ETF and is launching a second gold-related scheme.
  • Sundaram BNP Paribas AMC plans to launch its gold fund product after June.
  • SBI Funds Management is looking to add gold fund products to its portfolio.

Sources:

  • "Sandeep Singh Apr. 15--NEW DELHI --" - Hindustan Times
  • http://www.hindustantimes.com - Hindustan Times
  • Copyright (c) 2009, Hindustan Times, New Delhi - Hindustan Times
  • Distributed by McClatchy-Tribune Information Services. - McClatchy-Tribune Information Services
  • "To see more of the Hindustan Times or to subscribe to the newspaper, go to" - Hindustan Times
  • The Permissions Group Inc. - McClatchy-Tribune Information Services

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