Gold ETF – Continue or not

Q & A ForumCategory: Gold & CommoditiesGold ETF – Continue or not
Mukesh asked 9 years ago
Hi Shreekanth, I'm a frequent visitor to your blog and really appreciate your noble service to society. I'm 45 and I've been investing in Gold ETF (now reliance ETF) for the past 3-4 years and accumulated almost 200 units for my daughter's marriage. I stopped investing since 2016. I don't see any trend neither positive or negative for the past 6-8 months. I'm thinking of selling it off and invest in my existing MF portfolio to make my investing working than sitting idle. MF Portfolio: HDFC & ICICI Balanced Fund, ICICI Pru discovery, ICIC Equity opportunity & Mirae Emerging Bluechip. Pl let me know your advice to sell ETF & invest in MF. Thank you in advance. Regards Mukesh
Mukesh replied 9 years ago

Dear Shreekanth,
Thank you for the very prompt reply.

I started the Gold ETF in 2012 as part of my daughter’s marriage investment.
Also to keep some gold investment 10-15% of overall investment.

But it almost flat for almost a year. I feel that it is like just holding cash in a locker.
That’s the reason, I’m thinking of selling Gold ETF and distribute among existing MF portfolio.

Pl let me know your advice about my plan.

PS: I do have some assets for my daughter’s education & marriage.
Now MF Portfolio is for my retirement corpus.

Thank you & Best Regards
Mukesh

5 Answers
Sreekanth Staff answered 9 years ago
Dear Mukesh, Your MF portfolio looks fine.  May I know the goal target year? (for daughter's marriage). Suggested readings : https://www.relakhs.com/gold-is-it-still-the-safest-and-risk-free-investment/ https://www.relakhs.com/calculate-kids-education-goal-amount/
Sreekanth Staff answered 9 years ago
Hi, May I know your daughter's age? Gold Prices have become more volatile than equity oriented securities.  Considering your profile, may be it is wise to consider Equity mutual funds itself.
Mukesh answered 9 years ago
Another 7-8 years for marriage. Should I sell the Gold ETF & allocate into existing portfolio? Thank you
Sreekanth Staff answered 9 years ago
Hi, Yes, you may move the proceeds to balanced fund and may remain in Equity funds till you have say 2 to 3 years time to reach the goal year..
Mukesh answered 9 years ago
Thanks a ton Sreekanth for the direction.
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