The factual answer is, as Kotak would vindicate, an obvious no! It’s quite clear that customers are not investing that avidly in gold ETFs. Is a fear of volatility, or the rising Sensex the reason? Benchmark’s Mehta disagreed, saying, “Correlation of gold is very low with equity markets; a gold
ETF actually provides stability to the portfolio.” Jain of Kotak gave a supporting perspective, “Since the time we have launched our product, gold has reached $666 levels from $640 levels (upside of 3.5%) & correspondingly, Sensex has moved from 14,500 to 15,500 level (upside of 7%).” Considering the amazingly low risk attached with investing in gold, even a return that is half of that in equity markets is quite respectable.
Th e truth is, investors are simply not aware of gold ETF schemes. “The awareness of this type of investment vehicle is still low. Also, if the exchange traded funds have to reach the rural public & masses, things like, account opening procedures & documents should be kept simple,” says S.I. Kannan, analyst with Kotak Commodities.
Unless SEBI, AMFI & our Finance Ministry take proactive steps in educating investors about such a terrific investment vehicle, gold ETFs would remain dismally unknown.
ETF actually provides stability to the portfolio.” Jain of Kotak gave a supporting perspective, “Since the time we have launched our product, gold has reached $666 levels from $640 levels (upside of 3.5%) & correspondingly, Sensex has moved from 14,500 to 15,500 level (upside of 7%).” Considering the amazingly low risk attached with investing in gold, even a return that is half of that in equity markets is quite respectable.Th e truth is, investors are simply not aware of gold ETF schemes. “The awareness of this type of investment vehicle is still low. Also, if the exchange traded funds have to reach the rural public & masses, things like, account opening procedures & documents should be kept simple,” says S.I. Kannan, analyst with Kotak Commodities.
Unless SEBI, AMFI & our Finance Ministry take proactive steps in educating investors about such a terrific investment vehicle, gold ETFs would remain dismally unknown.
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
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