Reliance Gold Savings Fund (RGSF) is an unrestricted fund of funds strategy, which is inertly handled and will endow first and foremost in Reliance Gold Exchange Traded Fund (RGETF). Fundamentally RGSF is the very first gold fund of fund of India and it has opened fresh paths towards gold investment under the asset class. Thus the returns from this investment will consequently, reflect the profits of RGETF.
Despite the fact that you will not find any entry load but an exit load of almost two percent exists. This exit load will be available to those who redeem or even swap units either on or prior to the completion of a year after the allotment of the units took place. The fund helps in reaping payoffs of gold merely in paper form devoid of the need for a demat account. 5,000 INR is the minimum amount which you will have to pay while applying. There is an alternative of Systematic Investment Plan (SIP) consisting of an investment of Rs.100 every month.
Who Should Apply for RGSF?
Investors desiring to increase their gold collection and embrace gold as an asset class can go in for investing in this fund. Apart from this, the major advantage is that you need not experience the difficulties of operating either a broking account or even open a demat account. You can consider purchasing gold via SIP. The investors get a chance to take part in the bullion market in a comparatively cost efficient and suitable way.
Why Reliance Gold Savings Fund?
Following are the main features and benefits:
- You need not have a demat account and thus save money as you will not be paying any yearly continuance charges.
- You can also invest small amounts of Rs.100 as well via SIP.
- You can enjoy the benefit of STP (Systematic Transfer Plan) and SWP (Systematic Withdrawal Plan) and this creates the mutual fund a convenient one for all investors.
- This Fund allows ease in investment as well as in liquidating in the same way as investing in other mutual fund plans.
- Since you are investing in gold the fund provides for Purity as well as Safety. You need not worry about gold being stolen nor is there any need of stocking it in a warehouse.
Implication of Tax on Reliance Gold Savings Fund
- When you hold the fund for a period or more than one year then Long Term Capital Gain Tax of 10 % or 20 % along with indexation is relevant.
In case you hold the fund for a short period that is less than one year then Short Term Capital Gains is applicable depending on tax slab of the investor.