Gold mutual funds are investments in gold via Gold Exchange Traded Funds (Gold ETFs) or Gold Funds of Funds (Gold FoFs). Gold ETFs are passive investment vehicles that invest in physical gold and depend on gold prices. Investing in Gold FoFs, on the other hand, gives an indirect exposure to actual gold assets digitally. As a result, investors can receive the same benefits as when invested in real gold.
Here are five reasons why you should invest in gold mutual funds:
1. No storage issues
When it comes to the safety of real gold, investing in it becomes a problem. You have to keep the gold bars, coins, or jewelry in a secure location, such as a bank locker or a house safe. If you keep it in a bank locker, you also pay storage fees. Physical gold may also lose its luster over time owing to storage difficulties, resulting …