Dear Mr.Joshi, On what basis you say that a Gold fund should have 20% fixed incomeand 10% in shares etc. In that case shouldn't it be called Gold fund,instead another spicy name should be given to that. Look at this way. If your personal allocation ratio is 70-20-10, thenyou should buy three products and achieve the target instead ofsuggesting the gold etf should have 70-20-10 alloaction. In a practical sense, if you go to goldsmith and ask for 100gms ofgold and he gives you 70gms of gold, 20gms of copper and 10 gms ofiron will you accept it? I don't have much comments about the other points you raised. On Aug 20, 1:56 am, sharadchandra joshi <[EMAIL PROTECTED]> wrote:> Ideal Gold fund should work as follows:> * 70% of the corpus should be invested in Gold.> * Those who sell units to the fund get gold coins/chips of highest purity and not cash (less exit load)> * 20% is invested in fixed income govt securities> * 10% in stk mkt.> * Profit earned after deducting operational cost of fund is invested in purchase of further quantity of gold every six months and unit holders get additional units as bonus. Non-gold investment will ensure that if fund management does not have surplus funds to give bonus units, atleast their operational cost is recovered.> * If management is bad, people will rush to Fund to get back the gold.> * If all units are submitted for redeeming atleast 90 to 95% will get full or part of gold expected. Rest is mkt risk which is unavoidable.> I do not know how far it is practical and fits in SEBI norms. Today what is happening is that you can sell the units in mkt and pay brokerage and other charges. By the time you get the money in hand it is 8-10 days. In this time the price can go up and you have to use the money for purchasing gold at prevailing price which is higher from your own goldsmith whom you trust. If price goes down you are benefitted. But usually I find price of gold in retail market is higher than what we get from ETF. Very Idea of purchasing ETF units is therefore defeated.> Sharad Joshi>> ----- Original Message ----> From: Alok Gupta <[EMAIL PROTECTED]>> To: [EMAIL PROTECTED]>> Cc: [EMAIL PROTECTED]> Sent: Sunday, 17 August, 2008 6:19:34 AM> Subject: <<Aiii>> Re: Gold ETF>> which is the Gold ETF now a days?>> 2008/8/17 SANJAY VAIDYA <[EMAIL PROTECTED]>>> Hello,> As I understand Gold ETF is a mutual fund scheme which invests in only Gold. Its units are listed on stock exchange and traded regularly. The price per unit keeps on changing as per the international price of gold. It does not have an expirty. You can continue to hold units in demat account as long as the fund is in existence. There are no security concerns since the funds are backed by actual gold.> In case if you are looking at Gold as one more investment avenue, it is the best thing to invest in Gold Exchange Traded Fund (ETF).> You have the advantage of investing in gold without the botheration of quality of gold or storage problem. There are no deductions when you want to resale gold bonds unlike physical gold. These units/bonds are kept in demat account and no worry of physical storage of gold.> You can safely consider investing in gold ETF. Price is assured to move alongwith international price of gold.> Happy investing.> Sanjay Vaidya>> > On 8/13/08, Ranjeeth Kakliya <[EMAIL PROTECTED]> wrote:> Hello all,> > Can anybody highlight Gold ETF.> > How does it work?> Does it have expiry?> Security Concerns?> Other issues both Pros and Cons..> > Thank You> > Regards> > Ranjeeth>> --> --Alok Gupta> +971 55 910 8359> +974 650 3373> +91 9889267614>> Connect with friends all over the world. Get Yahoo! India Messenger athttp://in.messenger.yahoo.com/?wm=n/
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