DSP Gold ETF Fund of Fund: A Comprehensive Investment Guide

The DSP Gold ETF Fund of Fund is a popular investment option for those looking to diversify their portfolio with a gold investment. This fund is a fund of fund, meaning it invests in other funds that track the price of gold.

The DSP Gold ETF Fund of Fund is designed to provide investors with exposure to gold without the need to buy physical gold or invest directly in gold mining companies. It's a convenient and cost-effective way to invest in gold.

The fund invests in the DSP Gold ETF, which tracks the price of gold. This allows the fund to benefit from the price movements of gold, without having to physically store or manage the gold itself.

Consider reading: Are Gold Etfs a Good Investment

The Dsp Gold ETF Fund of Fund aims to track the performance of physical gold in domestic prices, with a tracking error.

To invest, you can buy at least one unit of the fund through the stock exchange, and in multiples thereof.

The fund has a unique identifier, with an NSE/BSE symbol of GOLDETFADD, BSE script code 543903, ISIN INF740KA1SW3, and Bloomberg Code DGOLETF.

Before investing, it's essential to understand your financial goals and risk tolerance. This will help you make informed decisions about the types of investments that are right for you.

A well-diversified portfolio can help spread risk and increase potential returns. This is because different asset classes, such as stocks and bonds, tend to perform well in different market conditions.

Investing in the stock market can be a great way to grow your wealth over the long term, but it's not without risk. Historically, the stock market has experienced periods of significant volatility.

It's essential to have an emergency fund in place before investing, with three to six months' worth of living expenses set aside. This will help you avoid dipping into your investments during times of financial stress.

Investing in a tax-advantaged retirement account, such as a 401(k) or IRA, can help you save for the future while reducing your tax liability. These accounts offer tax benefits that can add up over time.

A different take: Leveraged Etf Risk

Gold is a great investment option, especially during times of economic uncertainty. It's relatively less correlated to other asset classes, which means it can offer better risk-adjusted returns.

One of the benefits of investing in Gold is that it's easy to buy and sell, even in its digital form. With a Gold ETF, you can trade actively and easily, without the hassle of physical storage.

The current environment is also favourable for Gold, with the dollar index easing and expectations of monetary policies turning dovish. This means that buying Gold ETF can benefit from global prices as well as currency depreciation.

In the last 5 years, Gold has delivered approximately 88% absolute returns in INR, making it a worthwhile investment.

You can even start investing in Gold with just Rs. 5000, which is a much more affordable option than buying expensive jewellery items.

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The DSP Gold ETF Fund of Fund - Regular (IDCW) was launched on 3 November 2023.

The current NAV of DSP Gold ETF Fund of Fund - Regular (IDCW) is ₹12.59, as on 15 January 2025.

This fund is managed by Anil Ghelani and has an AUM worth ₹50.07 crore, as of 15 January 2025.

You can invest in DSP Gold ETF Fund of Fund - Regular (IDCW) via both lumpsum and SIP modes, with a minimum SIP amount of ₹100 and a minimum lumpsum investment of ₹100.

The fund's benchmark index is the Domestic Price of Physical Gold.

The DSP Gold ETF Fund of Fund - Regular (IDCW) has a total AUM of ₹50.07 crore as of 15 January 2025.

You can invest in this fund via both lumpsum and SIP modes, with a minimum SIP amount of ₹100 and a minimum lumpsum investment of ₹100.

The current NAV of the fund is ₹12.59, as on 15 January 2025.

The fund house behind DSP Gold ETF Fund of Fund - Regular (IDCW) is DSP Mutual Fund, a renowned AMC.

The fund has a total AUM (Assets Under Management) of ₹50.07 crore as of 15 January 2025.

Here are the fund's key details at a glance:

The fund's current NAV (Net Asset Value) is ₹12.59 as of 15 January 2025, and its benchmark index is Domestic Price of Physical Gold.

You can invest in DSP Gold ETF Fund of Fund - Regular (IDCW) via both lumpsum and SIP (Systematic Investment Plan) modes, with a minimum SIP amount of ₹100 and a minimum lumpsum investment of ₹100.

Our investment strategy aims to minimize tracking error, which is a measure of how closely our portfolio follows the market's performance.

The current tracking error is 0.33%, indicating a relatively low deviation from the market's performance.

Tracking error is also expressed as an absolute value, which in this case is 0.021%. This absolute value gives us a more precise understanding of the deviation.

We strive to maintain a low tracking error to ensure our investments are aligned with the market's performance.

The DSP Gold ETF Fund of Fund has consistently delivered impressive returns over the years. Its 1-year return stands at 23.24%, while its since-launch return is 22.44%.

The fund's performance is also compared to the Domestic Price of Gold, which has a 1-year return of 27.45%. This indicates that the fund has outperformed the gold price in the past year.

Here's a comparison of the fund's returns with the Domestic Price of Gold and the Fund of Funds-Domestic-Gold benchmark:

The fund's performance is not just limited to returns; it also offers a convenient way to invest in gold through a systematic investment plan (SIP) or a lump sum investment.