After a year of significant market volatility, many investors have reaffirmed their belief in owning gold in their investment portfolios. Silver, which is sometimes referred to as the “poor man’s gold,” has also become a popular option for many investors due to its recent strong performance. In response to this demand, mutual funds are offering products that give investors exposure to both precious metals, making them a potential consideration for investors this Akshaya Tritiya.
Gold and Silver Investment Schemes with EGS and MGS Mutual Funds.
There are currently two schemes available for investment that invest in a combination of gold and silver – the Edelweiss Gold & Silver ETF Fund of Fund (EGS) and the Motilal Oswal Gold and Silver ETFs Fund of Funds (MGS). While the EGS scheme has been maintaining an almost equal allocation to both gold and silver, the MGS scheme has started with a 70 percent allocation to gold and the remaining 30 percent to silver.
The EGS scheme aims to keep rebalancing the allocation between gold and silver each time the allocation to one of the metals reaches 55 percent. In contrast, the MGS scheme will only intervene when the allocation to one of the two metals exceeds 90 percent, and then it will bring it back to 90 percent on a quarterly basis. These schemes provide investors with the opportunity to invest in both gold and silver through a diversified and professionally managed investment vehicle.