Birla Sun Life Gold Fund

Birla Sunlife Gold Fund seeks to provide returns that tracks returns provided by Birla Sun Life Gold ETF. The investment objective of the scheme is to generate returns by investing in units of Birla Sun Life Gold ETF. This fund is managed by Mr. Satyabrata Mohanty. This is a good fund to have to systematically add gold to your portfolio.

Where does Birla Sunlife Gold Fund invest your money?

Birla Sunlife Gold Fund invests your money predominantly in Gold ETFs' and a small portion is invested in short term debts or schemes which invest in the money market securities or Liquid Schemes. It has more than 96.90% exposure to Birla Sunlife Gold ETF while around 3.10% exposure to Cash and Cash Equivalents.

Suitable for what?
  • Child’s education
  • Child’s Marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creation of wealth
  • Lifestyle needs
  • Short term needs
How has Birla Sunlife Gold Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 2012, your value of investments would be around Rs 92999 . The performance has been better or similar to other gold funds. The fund has been giving at around -5.8% every year for those who stayed invested since inception.

Assume you had invested Rs 10,000 every month in Birla Sunlife Gold Fund through SIP since its inception today you would have around Rs 1.28.

How will Birla Sunlife Gold Fund perform in the future?

Gold prices have historically stayed a few percentage points above inflation in the long term period. In times of economic instability gold can give highest return among other asset classes but it levels out when long term performance is considered.

So if you expect inflation to grow annually at 8% gold mutual funds would give returns at around 10%.

How much to invest?

Minimum one time investment is Rs 6000 and minimum SIP is Rs 1000 per month. Concentrating your funds in a single asset category is very risky. At any point in time not more than 10% of your total investment portfolio should be allocated to gold in any form.

Our recommendation for fresh investment
Our recommendation for existing investment
When to enter?

Now! There is no good time to start investing rather than now. Do not try to time the market and especially if it is an SIP. Keep adding gold to your portfolio systematically, in small installments. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the gold prices go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

Exit load of 2% is charged if units are redeemed within a year. No exit load applies for units withdrawn post one year. Expense ratio of Birla Sunlife Gold Fund is 1.50%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

If units are sold within one year then returns are taxed on the marginal rate i.e. as per the tax slab and if the units are sold after one year then long term capital gain applies which is taxed as 10.3% of gains if non-indexed, or 20.6% of gains if indexed, whichever is lower.

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