Gold funds are ideal for diversifying portfolios and lowering the risk of investment
Gold funds are one of the newest ways to invest in gold as an asset without the necessity to hold the commodity in its physical form. They are basically a type of mutual funds and can be categorised as open-ended investments, based on the units provided by the gold Exchange Traded Fund. These funds can also be used as a hedge to protect an investor against economic shocks. Many individuals diversify their investment portfolio with a part going into gold funds to secure themselves from the fluctuating market.