Gift 50 Sovereigns to Your Daughter or Grand-Daughter

Gold has always remained one of the most sought after investment by all. But, buying physical gold in the form of ornaments, bars, biscuits, and coins has been the traditional mode of investment. Many people ignore the fact that buying physical gold can make you shell out considerable money towards various charges and local taxes.

Gold Fund schemes of various Mutual Fund Companies have existed in India for over three years, and will work out to be cheaper as there is no making charge or VAT involved. As for liquidity, like mutual fund schemes, one can sell (with no bar on quantity being sold) their holdings on any working day, at the prevailing market price, and get money back. Moreover, you can also pledge the investments to avail bank loans.

Plan a gift to your newly born daughter or grand daughter by investing through Gold Funds. For accumulating 50 sovereigns (400 gms), to be gifted to her at the age of 20, you need to just invest Rs.4,166/- every month. (Average price per gram calculated as Rs.2,500).

(Following mutual fund companies are offering gold funds. SBI, HDFC, Reliance, ICICI, kotak.)