| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 11 |
NO. 2 |
PAPER 5 |
DOI: 10.5958/2321-2012.2015.00005.6 |
PERFORMANCE OF GOLD ETFs AND GOLD FoFs: A COMPARATIVE STUDY
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| Chandraiah Esampally*
and
B. Aarthi**
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| * Professor and Dean of Commerce, Dr. B. R. Ambedhkar Open University, Hyderabad |
| ** Research Scholar, Department of Business Management, Osmania University, Hyderabad |
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| Gold products are considered a highly valuable means of investment in the present scenario of financial markets. There are many alternatives to invest in gold like Gold Exchange Traded Funds (GETFs), Gold Fund of Funds (GFoFs), e-gold, stocks of gold mining companies, gold futures, gold bars, gold coins, gold jewellery, etc. Amongst these, the Gold Exchange Traded Funds (ETF) and Gold Fund of Funds (FoFs) have emerged as the most successful source for investment and ETFs industry has witnessed rapid growth in the last decade. The Gold ETF and Gold FoF provide a convenient way to the investors to intervene in the gold market. This paper attempts to compare the performance of Gold Exchange Traded Funds and Gold Fund of Funds. Return and risk of Gold ETFs has been compared with the return and risk of Gold FoFs. The study concluded that the Gold ETFs recorded lesser variability as compared to the Gold FoFs and therefore, the performance of Gold ETFs was better than the performance of Gold FoFs. |
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