Hi, My wife started investing in gold when my daughter was born. I could only buy 1 gm per month. We started with 1 gm per month of the gold wire rings every goldsmith sells as pure gold. As our buying power increased, we kept on buying more every month. Now for last few years we have found that there is a sort of Bhishi, where you give 11 cheques,one per month & the goldsmith will put the 12th installment. You buy gold at market rate from the shop. This gives about 8% rturn, higger than your FD`s and allows me to buy gold biscuit. I suggest you buy real gold instead of ETF`s & Gold funds. I prefer buying gold in 50 gm or higher size biscuits. These are guaranteed pure form and can be sold or used for ornaments later. You can look at gold as a parallel investment, just like bonds or stocks. Steady and sure returns. Regards...

Dear curious4ever, Plz. read my reply again. Quote - Heavy exposure Unquote - I do agree that all Eq. funds `ll try to go for opportunities but due to there basic mandate, most of the funds `ll not take any undue exposure in any sector/theme or even individual stock. But opportunity funds `ll go for heavy exposure. Sample this - Foe example there is an opprtunity arising in Auto sector. Now there r 2 funds from same AMC - Kotak 30 & Kotak Opp. K-30 is mandated to invest not more than 30-40 stocks & that too preferably from large caps but K-opp. `ll invest in mid as well as small caps stocks also within auto sector & even within auto sector it may take high exposure to any individual stock. I hope it `ll clear ur doubts. Thanks Ashal...

The difference is the marketing :-). It is just old wine in new and newer bottles. Some opportunities funds are as sedate as any other fund ( for e.g DSPBR opportunities fund )....

Dear curious4ever, As per the latest info posted by u for the marriage age of ur D`ter, u can accordingly define ur own mly. or qtly. contribution in terms of quantity of gold. Thanks Ashal...

Dear curious4ever, On the face of it Opportunity funds r diversified Eq. funds (os should i say multicap funds) but as the name opportunity points that, these funds may take heavy exposure at a given point of time in large or mid or small cap as well as in a theme or sector, wherever the fund manager thinks an opportunity exists. From risk point of view, opportunity funds comes after sectoral/thematic funds. From return point of view, the returns may be highly volatile based on the outcome of opportunities chased by fund manager. UTI opp., Kotak op.. & DWS Opp. r some of prominent names in this category. Thanks Ashal...

Dear Curious4ever, The approach is very simple. Just imagine if the marriage of ur D`ters` r today, how muc quantity u `ll gift 2day to each of them. Divide this quantity, by the no. of months u have to accumulate for each d`ter. This `ll give u the target of Gold to be purchased every month. Expense ratio of all gold ETFs is 1%. Thanks Ashal...

Dear curious4ever, Here i`m giving u the formula to calculate maturity amount for ur SIP on mly. growth rate. A = P*R*(R^n - 1)/(R-1) Where - A = Maturity amount P = mly. SIP amount R = 1+r/100 where r is ur mly. growth rate N = Time in months Thanks Ashal...

Dear Ashalanshu,

Thanks for info. So it just the different in approach which funds can take....

Dear rdadhe,

I appreciate your reply.

But, buying 1 gram pure gold is possible?
Though there are 1 gram stuff available, but then what about purity and making charges?
Then, if you want to use them for remaking other ornaments, again you loose money. Am I right?

Comment on this.

Thanks...

In other words, one should treat them just like other diversified funds.
In fact, won`t it be better to invest in good large caps / mid caps like RSF Equity, HDFC Top 200, IDFC Premier, Reliance Growth etc. with some part in sector funds like Reliance Diversified, ICICI Infra, DSPBR Fold etc.

Thanks....

Dear Ashalanshu,

But, isn`t the same strategy applied by other agressive funds (which might be large or mid caps)?
In fact, each and every fund manager looks for opportunities. Am I right? Then what is the basic difference?

Thanks...

Dear Members,

What are opportunities funds (Kotak Opp., DBS Chola Opp. etc.)?

How do they differ from other equity (diversified / arbitrage etc.) funds?...

Dear Ashalanshu,

Thanks for the formula....

Dear Ashalanshu,

I wrote "at-least 8 years" and not "8 years".
I meant to say that I hope to marry my daughters, only after 18. It might be 20 or 21 also.

Thanks for the advice....