Uncover the Potential of Commodities with MINTIT's Commodity Funds

p>Gold funds give you exposure to the price of gold without the hassle of buying, storing, or worrying about the purity of physical gold. These funds invest primarily in gold-related assets, offering a convenient way to diversify your portfolio.

1. What is a Gold Fund?

Gold funds are mutual funds that invest primarily in gold-related instruments like gold ETFs (Exchange Traded Funds), stocks of gold mining companies, etc.

2. Where does a Gold Fund Invest?

Gold funds primarily invest in:

• Gold ETFs: These funds track the price of physical gold.
• Gold Mining Companies: Stocks of companies involved in gold mining.

3. How Can I invest in a Gold Fund?

You can invest in Gold Funds through platforms like MINTIT, mutual fund houses, or brokers. Choose a fund with a strategy and expense ratio that suits you.

4. What is the benchmark of a Gold Fund?

The domestic price of gold is usually the benchmark for gold funds.

5. What are the average returns on a Gold Fund?

Gold fund returns generally track gold prices but can vary based on market fluctuations. Historical returns have fluctuated, so research recent performance carefully.

6. What is the ideal time horizon for a Gold Fund?

Gold is considered a hedge against inflation and market volatility, making it better suited for long-term investments (5 years or more).

7. Who should invest in a Gold Fund?

Investors seeking:

• Diversification: Gold can add stability to your portfolio.
• Inflation hedge: Gold tends to hold its value during rising inflation.
• Safe-haven asset:Gold is often seen as a safe investment in times of economic uncertainty.

8. What is the taxation applicable to a Gold Fund?

As per the budget released on July 23, 2024:

• Short-term (Holding period less than 3 years): Gains are added to your income and taxed as per your income tax slab.
• Long-term (Holding period over 3 years): 20% tax with indexation benefits (adjustment for inflation).

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9. Is there a lock-in period in Gold Funds?

Generally, Gold Funds are open-ended funds and have no lock-in periods. However, some may have an exit load if you redeem within a specific, short period.

10. Advantages of Gold Funds:

• No physical storage concerns: No need for lockers or worry about purity.
• Liquidity: Can be bought or sold easily.
• Professional management: Experienced fund managers handle the investments.

11. Disadvantages of Gold Funds:

• Expense ratio: Funds have management fees.
• Market volatility: Gold prices, like any asset, can fluctuate.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

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Often referred to as the "poor man's gold", silver is a valuable precious metal with both investment and industrial applications. Silver funds provide an easy way to gain exposure to this asset, offering potential diversification and growth opportunities.

1. What is a Silver Fund?

Silver funds are mutual funds investing mainly in silver-related instruments such as silver ETFs, silver mining company stocks, or physical silver.

2.Where does a Silver Fund Invest?

Silver funds primarily invest in:

• Silver ETFs: Funds tracking the price of physical silver.
• Silver Mining Companies: Stocks of companies involved in silver mining and production.

3. How Can I Invest in a Silver Fund?

Invest in silver funds through apps like MINTIT, directly with mutual fund houses, or through brokers. Ensure the fund aligns with your investment strategy.

4. What is the benchmark of the Silver Fund?

Silver funds are typically benchmarked against the domestic price of silver.

5. What is an average return on Silver Fund?

Silver prices can be more volatile than gold, impacting returns. Historical performance can vary, so research recent trends carefully.

6. What is the ideal time horizon for a Silver Fund?

Consider silver as a long-term investment option (5+ years) to handle potential price fluctuations.

7. Who should invest in Silver Fund?

• Diversification-seeking investors:Silver adds another asset class to your portfolio.
• Inflation hedge seekers: Silver can maintain value during inflationary periods.
• Investors with higher risk tolerance: Be prepared for silver's greater price volatilit compared to gold.

8. What is the taxation applicable on Silver Fund?

Taxation is the same as Gold Funds:

As per the budget released on July 23, 2024:

• Short-term (less than 3 years): Gains are part of your income and taxed accordingly.
• Long-term (over 3 years): 20% tax after indexation benefits.

Check Tax Reckoner

9. Is there any lock-in period in Silver Fund?

Most silver funds are open-ended without lock-in periods. However, check for any fund-specific exit loads for early redemptions.

10. Advantages of Silver Funds:

• Exposure without physical hassle: Avoid storage and purity concerns.
• Potential for higher returns: Silver can sometimes outperform gold.
• Professional management: Managed by experienced fund managers.

11. Disadvantages of Silver Funds

• Volatility:Silver prices can be more volatile than gold.
• Industrial Demand:Silver prices are influenced by industrial demand fluctuations.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Commodities, including energy, metals, and agricultural products, are essential building blocks of the global economy. General commodities funds offer access to a diverse range of these raw materials, potentially enhancing portfolio stability and providing strong returns.

1. What is a General Commodities Fund?

These mutual funds invest in a basket of commodities or commodity-related instruments like futures contracts, ETFs, or stocks of commodity-related companies.

2. Where Does a General Commodities Fund Invest?

General commodities funds invest in:

• Commodity Futures: Contracts to buy/sell commodities at a future date and price.
• Commodity ETFs: Exchange-traded funds tracking the price of individual commodities or a commodities index.
• Stocks of Commodity Producers: Companies engaged in the exploration, production, or processing of various commodities.

3. How Can I invest in a General Commodities Fund?

Investing is possible through platforms like MINTIT, mutual fund houses, or stockbrokers. Select a fund that aligns with your investment preferences and risk tolerance.

4. What is the benchmark of a General Commodities Fund?

General commodities funds often use broad commodity indices as benchmarks, such as the Bloomberg Commodity Index or the S&P GSCI

5. What are the average returns on General Commodities Fund?

Returns are tied to the performance of the underlying commodities. Historically, they've offered the potential for high returns as well as higher volatility.

6. What is the ideal time horizon for a General Commodities Fund?

Commodities are often cyclical, making them better suited for a longer time horizon (5+ years) to handle price fluctuations.

7. Who should invest in a General Commodities Fund?

Investors who seek:

• Diversification: Commodities can have a low correlation with traditional assets like stocks and bonds.
• Inflation Protection: Commodities tend to perform well in inflationary environments.
• Higher risk tolerance: Prepared for volatility inherent to commodities.

8. What is the taxation applicable on a General Commodities Fund?

As per the budget released on July 23, 2024:

• Short-term Capital Gains (STCG): If you sell your mutual fund units under this category within two years of purchase, the gains are considered STCG and are taxed as per your income tax slab.
• Long-term Capital Gains (LTCG): If you sell your mutual fund units under this category after two years of purchase, the gains are considered LTCG and are taxed at 12.5%.

Check Tax Reckoner

9. Is there a lock-in period in a General Commodities Fund?

Most general commodities funds are open-ended, with no lock-in period. However, there might be exit loads for early redemption in some funds.

10. Advantages of General Commodities Funds:

• Broad diversification:Exposure to a wide array of commodities.
• Inflation hedge potential: Commodities can protect against rising inflation.
• Growth potential: Benefit from potential growth in commodity prices driven by global demand.

11. Disadvantages of General Commodities Funds:

• High volatility: Prices of commodities can fluctuate wildly.
• Geopolitical risk: Supply disruptions and political events can impact commodity prices.
• Complex instruments: Futures contracts and derivatives within the fund can add complexity.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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Gold mining funds specifically invest in the stocks of companies involved in the exploration, extraction, and processing of gold. These funds offer a way to gain exposure to the gold sector without directly buying individual mining stocks.

1. What is a Gold Mining Fund?

Gold mining funds are a type of sector fund investing predominantly in the stocks of gold mining companies across various sizes and locations.

2. Where Does a Gold Mining Fund Invest?

Gold mining funds typically invest in:

• Large-cap mining companies: Well-established, globally operating miners.
• Mid-cap and small-cap miners: Companies with smaller operations, potentially higher growth prospects, but also higher risk.
• Mining companies in different geographies: Exposure to various mining regions.

3. How Can I invest in a Gold Mining Fund?

Invest in gold mining funds through platforms like MINTIT, mutual fund houses, or stockbrokers. Carefully choose a fund based on its investment strategy and risk profile.

4. What is the benchmark of a Gold Mining Fund?

These funds are often benchmarked against gold mining indices or the price of gold itself. Examples include the NYSE Arca Gold Miners Index or the VanEck Junior Gold Miners Index.

5. What are the average returns on Gold Mining Fund?

Since gold mining funds invest in stocks, returns depend on gold prices and mining company performance. They can offer high returns but also carry higher risk.

6. What is the ideal time horizon for a Gold Mining Fund?

Due to the cyclical nature of the gold industry, gold mining funds are generally better suited for long-term investment horizons (5+ years).

7. Who should invest in Gold Mining Fund?

These funds may be suitable for investors seeking:

• Leveraged exposure to gold: Potential to outperform gold prices in a rising market.
• Sector-specific investment: Focus on the growth prospects of the gold mining industry.
• Higher risk tolerance: Prepared for greater volatility than direct gold funds.

8. What is the taxation applicable on a Gold Mining Fund?

As per the budget released on July 23, 2024:

• Short-term Capital Gains (STCG): If you sell your mutual fund units under this category within two years of purchase, the gains are considered STCG and are taxed as per your income tax slab.
• Long-term Capital Gains (LTCG): If you sell your mutual fund units under this category after two years of purchase, the gains are considered LTCG and are taxed at 12.5%.

Check Tax Reckoner

9. Is there any lock-in period in Gold Mining Fund?

Gold mining funds are usually open-ended schemes, offering flexibility. However, some may have exit loads for early redemption.

10. Advantages of Gold Mining Funds:

• Focused exposure: Target the gold mining industry specifically.
• Potential for higher returns: Offer the chance for amplified returns compared to direct gold investment.
• Diversification within the gold sector: Provide diversification by investing in multiple mining companies.

11. Disadvantages of Gold Mining Funds:

• Higher Risk: More volatile than direct gold funds due to stock market exposure.
• Company-specific risks: Operational, financial, or regulatory risks of individual mining companies.
• Environmental concerns: Gold mining can have negative environmental impacts.

12. What shall be the Exit Load?

Exit loads vary from fund to fund, to know more about them, it is advisable to read scheme related documents.

13. Want to know more about Mutual Funds?

Mutual Fund Explained

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