Gold fund of funds or ETF - which one's better?
Sep 16, 01:09

Gold Exchange Traded Funds (ETFs) are a good way to invest in the precious metal. Costs are low and the funds track the price of gold with negligible difference. But ETF units aren't always liquid. You also need a demat account. A gold fund of fund (GFOF) is the way out then. GFOFs invest their entire corpuses in gold ETFs. You can invest any amount beyond the minimum investment. That means, you can buy gold in fractional units. And unlike ETFs, GFOFs allow systematic investment plans and do not require demat account. The flipside is higher expense ratios for GFOFs.

GFOF Investing simplified