The yield from gold funds offered by mutual fund houses has touched 16.83 per cent in the 12 months ending July 30, outperforming equity and debt fund categories.
Gold has a negative relationship with equity. In times of volatility or crisis in the stock markets, gold as an investment performs better than equity, fund managers say.
Present volatility and uncertainty in other asset classes have prompted investors to turn to safe-haven investments like gold funds or ETFs, they say.
“The credit crisis in debt and volatility in equities have prompted investors to turn towards safe-haven investments like gold,” said a fund manager from a bank-sponsored fund house.