Comments on: Personal Finance Tips for 2010 – Part 3

By: Hari

Hari — Wed, 27 Jan 2010 12:43:22 +0000

Krishna,
Congratulations. So you are enjoying the happiest moments in the life. Good to know.
Regarding gold investment, thanks for your suggestion. I am also thinking for long term ETF are best choice.
But there is catch. We can buy ETF only through trading and demat account. If the invester don’t do trading other than Gold ETF then the returns may come down. Because he has to pay some money (approx 400/- per year) for maintaining the trading and demat account. Where as mutual fund doesn’t required trading account to buy.

Thanks
Hari

By: amber

amber — Wed, 27 Jan 2010 07:28:03 +0000

i am 30yrs old.

By: krishnas

krishnas — Sat, 23 Jan 2010 16:11:16 +0000

Hello Hari,

Thank you for your valuable post. It is good idea to invest in the gold. I am glad to share with you that I too have new born baby girl, I have to start invest for her.

Your main question is whether Gold ETF or Gold mutual fund. It all depends on the need and your risk taking capacity.

If you are looking for the high returns and more risk, then invest in the gold mutual fund.

If you are looking for the good (not very high) returns with less risk, then invest in the gold ETF.

My suggestion would be to go for the Gold ETF. Also for the long term investment, there won’t be much risk involved in that.

Please let me know about your opinion.

Thanks,
Krishna

By: Hari

Hari — Sat, 23 Jan 2010 15:15:19 +0000

Hi Krishnan,
Thanks for your compliments.
I am a regular reader of your website. First of all I want to thank you for educating me with your valuable posts. I am having one question on gold investment which is not related in this posting. Sorry for posting it here.
I have 2yrs old daughter. I planned to invest 1gm gold for my daughter’s marriage every month. I have following options to invest,
(If i missed out any other option please let me know)

a) Physical gold buying(Gold coins- 2gm, 5gm, 10gm)
b) GOLD ETF (GoldBEES, Reliance gold ETF, etc)
c) Gold mutual fund(Tata AIM World gold fund; DSP BR World gold fund)

Due to the making charges and safety deposit of gold i discarded physical gold option.

Now i need to decide one option among GOLD ETF or GOLD mutul fund. Can you please suggest in this regard. I have some thoughts or points. I am listing them here to help you to give me good suggestion.

a) I am going to invest on gold per month 1gm regularly. I am going to invest next 20yrs. So it should be secure.

b) Mutual funds gave very good returns than ETF. Approx.(10% more than ETF). So mutual fund is good option over ETF?

c) I trust Mutual fund maintaince cost is more than ETF. If gold doesn’t give good returns then does gold mutual funds give less returns than gold ETF?

d) Since i am planning to continue investment next 20yrs, what happens if AMC want to close the mutual fund? How to handle this situation?

Please give me your valuable suggestion at the earliest.

Thanks
Hari

By: krishnas

krishnas — Fri, 22 Jan 2010 16:17:29 +0000

Hello Amber,

What is your age?

Thanks,
Krishna

By: Amber

Amber — Tue, 19 Jan 2010 10:03:23 +0000

hello sir,

I am middle class man, hardly saving rs.25000/-yearly. Can you suggest me some good investment plans.

thanks for informative ideas.

By: krishnas

krishnas — Fri, 15 Jan 2010 11:52:40 +0000

Hello Hari,

It is exciting to see the point. Because, I have already draft in place explaining the google calendar to effectively manage the events. Thank you for the comments.

Thanks,
Krishna

By: Hari

Hari — Fri, 15 Jan 2010 05:25:53 +0000

Hi Readers,
I want to add one more point under “3. Maintain a calendar” section.

It is very difficult to remember the important dates as we are busy with day to day activities.(premium payment dates etc).

But i overcomed this problem with google calender and google docs.

Google calerder:- Enter all important events like premium payment dates. Configure your mobile number in google. You will get SMS on that particular date

Google DOCS:- Enter all important information like insurence number, bank a/c details etc. Even if you loose your documents you can retrieve minimum details from single location. This will also bring the flexibility to access anywhere in the world.