Information on Gold Funds
A gold fund will principally offer a way to own allocated physical gold stored in secure vaults.
The way it works is a gold fund will have a certain amount of the funds assets in allocated gold, say between 75-90%. The remainder of the funds assets are then traded in gold related products trying to achieve an above gold spot return.
Another benefit of a well run gold fund is that it smooths out downside price volatility. Or to put it another way, the fund aims to protect you from sudden substantial down drops in the price of gold.
Often a fund will have a certain amount of their fund (15-20%) in gold mining shares, again giving the investor some limited exposure to any potential upside in the gold mining sector.
The above is information only and not advice. Gold Made Simple does not currently market or sell gold funds.We are not Financial Advisors or fund managers nor do we give financial advice. We operate an information service which aims to inform you of a range of options that are available to you. We will not be a party to any resulting advice that you get from a qualified Financial Advisor, fund manager or other advisor. We therefore do not accept any responsibility or related liability for any advice given to you or other work carried out on your behalf by your appointed Financial Advisor. You are under no obligation to enter into any contract for any product with any companies that you are informed about.