Reliance Gold Savings Fund Review – Should you Invest?

by Hemant Beniwal on February 10, 2011

Reliance Mutual Fund has launched the Reliance Gold Savings Fund & there is a big buzz in market around this product. What a great time to launch such fund when gold is rising and equities are a bit in problem.  Investors are tempted to open a Systematic Investment Plan (SIP) in Reliance Gold Savings Fund.  First let’s understand this product, its benefits, taxation, how it’s different from Gold ETFs & later we will see if is Worth Investing or not. (You will be shocked – Guaranteed)

Reliance Gold Savings Fund 300x176 Reliance Gold Savings Fund Review – Should you Invest?What is Reliance Gold Savings Fund

Reliance Gold Savings Fund is a bit of a new concept of investing in gold as it allows you to invest in gold without a demat account. Reliance Gold Saving fund is a Fund of Fund & it endeavors to near the returns of Reliance Gold Exchange Traded Fund which in turn invests in physical gold.  But unlike a ETF the fund does not require a demat account and the stock market route for buying and selling the units.

Reliance Gold Savings Fund is a passively managed fund suitable for a long term investors, who can invest through SIP or lump sum. As a long term investment it gives an opportunity to invest in the GOLD commodity, in a convenient way, which is one of the fancied assets for any investor. (fancied asset)

Features & Benefits of Reliance Gold Savings Fund

Reliance Gold Savings Fund opens a new avenue for investing in gold. This fund enables to reap returns closely to returns provided by Reliance Gold ETF.

  1. No need for having demat account: so no need to open a demat account and pay the annual maintenance charges.
  2. Systematic Investment Plan (SIP): Benefit your investment by investing through small amount over a period of time. Even Small Amount like Rs 100 or Rs 500
  3. Systematic Transfer Plan & Systematic Withdrawal Plan: A benefit of STP and SWP makes it a convenient mutual fund product.
  4. Easy to Invest & Liquidate: similar to investing in a mutual fund scheme.
  5. Purity & Safety: investment is in highest quality gold with no theft or warehousing problems.

Taxation on Reliance Gold Savings Fund

  • Long Term Capital Gain Tax(after 1 year) of 10 % or 20 % with indexation will be applicable
  • Short Term Capital Gains (before 1 Year) applicable as per tax slab for the investor

Reliance Gold Saving Fund Vs Gold ETF Fund

A Gold ETF is an ETF that has gold as the underlying security. So, the value of the ETF is derived from the value of underlying gold. Gold ETF would be a passive investment; so, when gold prices move up, the ETF appreciates and when gold prices move down, the ETF loses value.

In ETF incur charges like annual maintenance charges for demat account, delivery brokerages charges, transaction charges incurred for investing through the dematerialized mode. The investors will be bearing the recurring expenses of the scheme, in addition to the expenses of underlying Scheme.

Is Gold Saving Fund a unique idea

If we talk about launching of a fund – yes it is but if we talk about thinking no. Quantum Mutual Fund applied for Quantum Gold Saving Fund with SEBI in May 2010 but never launched it.

How to Invest in Reliance Gold Saving Fund

Read Next point before reading this

  • Call your mutual fund agent – put down your phone he will himself call you in 3-4 days.
  • You can also purchase it online.

Hidden points in Reliance Gold Savings Fund

Now comes the warning sign board which normally is hidden in the scheme related documents – so here it is…

“The investors of the Scheme will bear dual recurring expenses and possibly dual loads, viz, those of the Scheme and those of the underlying Schemes. Hence the investor under the Scheme may receive lower pre-tax returns than what they could have received if they had invested directly in the underlying Schemes in the same proportions.”

123 300x198 Reliance Gold Savings Fund Review – Should you Invest?Now they are talking about 2 big points here

  1. Dual Loads: Reliance Gold ETF is having no Load but Reliance Gold Savings Fund is having a load of 2% for 1 year. So if you exit before 1 year you have to pay 2% load. I know you are long term investor & will save your loads but what about expenses.
  2. Dual Recurring Expenses: Their lies bigger problem – they say “Investors may please note that they will be bearing the expenses of the relevant fund of fund scheme in addition to the expenses of the underlying schemesin which the fund of fund scheme makes investment.” Oh! Dual expenses – let’s check how much:
    1. Reliance Gold ETF 1%
    2. Reliance Gold Savings Fund .5%

So there are total of 1.5% charges (and Reliance is free to change {read increase} these charges in future) that you have to pay to enter this product but even diversified mutual funds charge 2-2.25% charges. So read next 2-3 points twice or thrice – still not able to understand please ask:

  1. Reliance Gold Savings Fund & even Reliance Gold Exchange traded funds are passive funds so 1.5% charges are too high. In passive funds there is no role of fund manager – internationally ETF (including gold ETF) average yearly charges are less than .5%.
  2. Most important point of the whole article– Gold as an asset class has given returns close to inflation. So we are talking about 6-7% – OK assume 8% that it’s going to deliver in next 10 years. So now compare expenses ratios
    1. Reliance Gold Savings Fund – 1.5% on 8% this comes to 19% and if we get lower return this ratio will increase
    2. Diversified Equity Mutual Funds – 2% on 15% this comes to 13% and here there is active involvement of fund management team.

Why I quoted Quantum Mutual Fund in this article because they mentioned a great point in their offer document “These are the fees and expenses for operating of the Scheme. The annual recurring expenses of the Scheme shall be borne by the AMC. The AMC shall not charge any investment management fees.”

Should you buy Reliance Gold Savings Fund

Everyone is ready to convince you that gold price will only go higher but we just want to say – gold should be small part of asset allocation and the reason of buying gold should not be rise in price. I think I have already expressed my views on Gold Prices & also shown you expenses in this product. End of the day it’s your hard earned money.

Agents will come to you & show you 5 Year & 10 year return charts – ask them for 20 years & 30 years chart. You will find gold have even underperformed Fixed Deposits.

Have you ever wondered where were these guys 5 years back when gold was 1/3rd of its current price??

What do you think – should one buy Reliance Gold Savings Fund ?

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{ 144 comments… read them below or add one }


Thanks for reading this review but I think few people who are reading this article or my comments on this post will NOT agree with me. Why? Most of the people who search something are actually searching for a confirmation – in “Behavioral Finance” this is called Confirmation Bias.

Confirmation bias is a tendency for people to favor information that confirms their preconceptions or hypothesis regardless of whether the information is true. Confirmation biases contribute to overconfidence in personal beliefs and can maintain or strengthen beliefs in the face of contrary evidence. Hence they can lead to disastrous decision. Confirmation Bias is of different types but most common is “Biased Search of Information”. People tend to test hypotheses in a one-sided way, by searching for evidence consistent with the hypothesis they hold at a given time. Rather than searching through all the relevant evidence, they ask questions that are phrased so that an affirmative answer supports their hypothesis. They look for the consequences that they would expect if their hypothesis were true, rather than what would happen if it were false. (Source Wikipedia)

I think this is something you must be reading for the first time – “Investment is not a Number Game, it is a MIND GAME”

If you would like to read more about “Behavioral Finance” & how it affects your investment you can download FREE guide from top of this page.

Happy Investing!!

Hemant Beniwal,
Certified Financial Planner
(Added this on 19th Feb 2011 11AM)


2 Rajesh

Thanks for this valuable information, but i didn’t about the return concept from this particular investment. could you help me to understand the return concept with comparison of other SIP funds.



Hi Rajesh,

GOLD & Equity are 2 different asset classes – there returns will always be different. (no comparison as such)



Why is there a difference in returns between reliance gold etf and reliance gold savings fund for the same period?


5 bhushan badhe

thank u sir for giving such valuable knowledge regarding reliance gold saving fund.


6 Jagdish


It’s a real eye opener.


7 Hemant Beniwal

Hi Jagdish,

Also read “Who Should Invest in Reliance Gold Savings Fund” in recent articles.


8 Santosh

Hi Hemant,

Thanks for explaining in detail. With such high charges, I am not going to buy this fund.


9 Ketan Amin

Hi Hemant,

I would instead prefer to invest in gold through National Spot Exchange in eGold.


10 Hemant Beniwal

Hi Jagdish/Santosh/Ketan,

Thanks for sharing your views. “)


11 paresh

I think one should invest in this fund systematic way.expecting gold prices to reach $1800 within 3yrs.NAV of this fund can be more than 15 within three years.
i won’t have a problem to give 1.5% of fees.
pl.remember this is only kind of fund to offer sip in Gold.


12 Hemant Beniwal

Hi Paresh,

As you are a mutual fund advisor – I am taking your comments seriously. I think even reader will be having this thing in mind.

I am not saying you should buy it or not – how this is going to make any difference in my life. I have just wrote this bcoz people should understand pros & cons and take wise decision.

Now coming to your claims of $1800 - I am worst timer of the market so I don’t know where gold is heading. Let’s take your figure of $1800 that gold will touch within 3 years. This means a return of 9.8% CAGR(I am assuming that Rs & Dollar will maintain current conversion Ratio). Let me take out expense ratio from this & your return will be 8.3% CAGR. – that means NAV of 12.7 & not 15.
Expense ratios are always important while investing in any asset class – they become even more important when expected return from asset class is low.


13 paresh

Dear Hemant,
Pl.remember there are also good distributors in country.

i have advised my clients to invest in systematic way, not in lumpsum way.
whatsever calculation you showed may be OK for lumpsum investors but for systematic investment there is nothing safe and secure ,economical like Gold and Silver.(even not equity market).
And this fund is the most reliable,safe and easy way to invest than any other mode.

Also you gave a reference of Quantum mutual fund.There is difference in both fund houses.I am not talking about Expertise but distribution and client base.


14 Hemant Beniwal

Hi Paresh,

Its not about good distributor or bad distributor – it’s about should people invest in Reliance Regular Savings Fund or Not. If they should invest – should they invest in NFO or they should take some time to think & invest after NFO. (Jaldi ka kam shaitan ka)

You gave figures of $1800 & Rs15 NAV in 3 years – I used same to share calculations.
Regarding Safety of Gold & Silver – read this
“And this fund is the most reliable, safe and easy way to invest than any other mode.” still there is time in opening of this fund & you are claiming such big things. If this is the best thing that would have ever happened with an Indian Investor – why this or similar funds were never launched before.

Investment is about having proper asset allocation; if Indians will make their networth statement they will find that they have good amount of gold. (and this fund was not there at that time)

Regarding Quantum- I was talking about expense to investor & not business models of companies.


15 paresh

please try to understand that mutual fund industry in India is about to mature.Its not enough matured. New and Newer products can only come out after sufficient time is given to it… future another simple thing will evolve …When anyone tries for new thing sufficient work,research has to be done on it….

Today,,what % of total household investment is being invested in mutual funds?its may be hardly 7-8%….so there is very less retail paricipiation in India compared to European countries or in united states….AMCs also needs to think about it before they launch new ideas…

Finally,,most important thing is that there is very less response to Gold ETFs itself.
Peoples are not convinced about investment in Gold ETfs …till they prefer to buy in physical mode only…so its obivious for AMCs to think twice about such kind of ,Gold investment related funds……..

Finally,,regarding expenses ,,(NFO expenses are being
borne by AMC)…These expenses are looking higher as you are expecting the returns of 8% and that is not the true situation…sensex moves from 20000 to 17500,,tomorrow Gold also may come down till 16000 levels but definately there is lower cap for Gold around that levels..
So we are looking positively towards this kind of fund…and in future limited supply,inflation presuure , Universal safe haven status ,limited options available for international Gold ETFs,Hedge funds can offer good returns in Gold and in turn in this fund also…


16 paresh

Dear Hemant,
You said:”Investment is about having proper asset allocation; if Indians will make their networth statement they will find that they have good amount of gold. (and this fund was not there at that time)”

No one denies it. Most of the Indians have good amount of view towards it has remain as Safe,secure and economical investment….But related problems like liquidity,investment for its safekeeping etcc..are also there…so who wish to invest in gold for just investment point of view,,such funds are really useful for them….and we are expecting more response to this fund ,,well above ETFs..


17 Hemant Beniwal

Hi Paresh,

This discussion is not making much sense – these are my last replies(Just my views on your comments):

“mutual fund industry in India is about to mature.” MF Industry has not yet begun it’s journey – we are still standing where we were standing in 2000.(Next week will share some data on it)
“AMCs also needs to think about it before they launch new ideas…” Don’t talk about how ideas of bringing new products generated.
“NFO expenses are being borne by AMC” good but will investors lose something if they don’t invest in NFO.(Investor should think twice & thrice before purchasing any product & avoiding NFO will give them sufficient time to take wise decision)
“Gold also may come down till 16000 levels but definately there is lower cap for Gold around that levels..” Now you are becoming Astrologer who are we to decide levels of gold. You already failed in 2007 & why you want to fail again.
“Your commentary on why gold – safe haven” Historically there are many multi-decade periods where gold has given negative return & that too coming 1/3rd from it’s high.
“Safe,secure and economical investment….But related problems like liquidity,investment for its safekeeping etcc..” I think I have mentioned this in benefits of the product. But don’t say this is Nirvana.


18 paresh

Its Okk.I also not interested in furthur discussion.
But its sure that i am going to log in more than 25 SIP applications on opening day itself…..
at least you can wish Best luck to me…


19 Dinakaran

Hi Hemant,

It’s really a good article.
It will be more helpful if you could provide us with a kind of Data sheet.
Say like i am going to invest a lump sum of 1lac and a SIP of Rs.1000 for another 3 years..
what could be the difference ?.



20 Hemant Beniwal

Hi Dinakaran,

It’s not possible to prepare such data sheet as we don’t know where gold prices are heading. And I don’t want to take wild assumptions.


21 paresh

also, assumption of 8% rates in future for Gold and 15% for equity funds is not a very valid argument.


22 Hemant Beniwal

Hi Paresh,

This is something about basics of investing & how different asset classes have performed over a period of time. Not 5-10 year not even 20-30 years but 50-100 years.


23 paresh

Dear Hemant,
There is same issue again of investing in lumpsum and syetematically.
In Jan. 2008 sensex was about 20,000 and in Jan 2011 sensex was again at around 20,000.for lumpsum investors returns are zero(may be negative ).but if calculated for syetematic way returns are over a period of time,i think there will be likely growth of inflation in united states as they are continuing printing money and series of Quantitative easing is going on. so in future i am looking for gold and Silver to continue as safe heaven status and can deliver good rate of return. Also there is a option to book profit at timely intervals for us.


24 Hemant Beniwal

Hi Paresh,

People understand benefits of SIP & we had good discussion on this post regarding the same

You said “i think there will be likely growth of inflation in united states as they are continuing printing money and series of Quantitative easing is going on. so in future i am looking for gold and Silver to continue as safe heaven status and can deliver good rate of return.” So give me a good reason why it is rising from last 10 years. There are lagging & leading indicators – it’s not necessary that any asset or market reacts only after news is out in public.

Booking profits – have your investors booked profit in 2007??


25 Surendra

Hemant Sir,

I got few funny messages from Reliance AMC; I am their distributor.

Dear Partner, you have ….. investors with Reliance Mutual Fund under ARN……… Contact each one of your investor to include Gold in their Asset Allocation. (It looks they really care about our investors ;) )

Dear Partner, Join us on d gr8 journey of Reliance Gold Savings Fund NFO . Support us with only 10 forms on Mahurat day tomorrow & rewrite the history. Thanks in Anticipation. (Even they beg sometimes)


26 Hemant Beniwal

Hi Surendra,

Thanks for sharing this.
See they are doing business & their first responsibility is towards shareholders. And your first responsibility is towards your clients.


27 Purnanand

Would recomend to buy E-gold from stock exchange in demat account. Allocation will be in form of units, those units can be redeemed at the current international gold price – One of the cheapest mode of buying gold……and grow richer with yellow metal at your bay!!!!
Hey Hemant, good one, I share the same opinion as you.


28 Hemant Beniwal

Hi Purnanand,

Yes this can be one of the options.


29 Satya Vyas

Dear Hemant,

For me as an investor the article was very well poised and projected objectively which adds a lot of credibility to it. Even I read their fund documents and even I was amazed by their “recurring dual” charging. Also what struck me was the mention of the changes in prices due to settlement taking some time, can you please throw some light on that as well, may be it is just wrong interpretation on my part.


30 Hemant Beniwal

Hi Satya,

GOLD ETF will try to mimic price of gold & Gold Savings Fund will try to mimic GOLD ETF. (bit complex & this will create tracking error similar to Index Funds)

Just copying from SID “The liquidity of the Scheme’s investments may be inherently restricted by trading volumes, settlement periods and transfer procedures. In the event of an inordinately large number of redemption requests, or of a re-structuring of the Scheme’s investment portfolio, these periods may become


31 pattu

Awesome! Just started to get some info on this. Stopped after coming here. Thanks for the unbiased comments.

Nice to see some debate in this blog. Don’t see what Paresh’s problem is!
Reminds me someone who frequents Manish’s blog! Wonder who …

Hemant: Do you have a media agent? If not I thin its time that you got one for increased visibility on TV.


32 Hemant Beniwal

Thanks Pattu.

It’s good to hear different views – let people decide what’s right & what’s wrong for them.

If I will speak this on TV; people will kick me Left, Right & Center ;) when I got a chance I spoke my heart. You can check this here

Keep visiting.


33 Ankit Jain

Finally Speaking after viewing the blog & comments of various financial advisors I think that GOLD ETF’s are better than GOLD Fund But GOLD ETF are not very familiar to Retail Investors also they lack info of methods to buy it. Gold Fund is good for these retail investors and also easy to buy.

Talking about the Recurring Charges: If a retail Investor is looking for Investment in Gold then Applying for GOLD Fund is much easier to him than Gold ETF & Also it doesn’t make much difference in Returns.



34 Hemant Beniwal

Thanks Ankit for sharing your views.


35 Rubina Vishram

No. I don’t think we should invest. And after all it is Reliance…………..

So be careful!!

Thanks for a detailed explianation


36 Hemant Beniwal

Hi Rubina,

After all it is Reliance……….???

Any personal bad experience..


37 Kiran Telang

Very well written Hemant. Novelty of the offering sometimes blinds people to the problems in the product.


38 Hemant Beniwal

Thanks kiran.

Read it somewhere “It is always better to think through what you would like to do and do it if it makes sense. You don’t need to do anything just because everyone else is doing it and you would prefer to conform and hope to be right.”


39 Sidharth

Hi Hemant,

Thanks a lot for sharing all your views.
It’s a eye opener for many of us.
I was almost decided to invest through SIP in Rel gold saving fund before reading this article.
Keep it up your good work.


40 Hemant Beniwal

Thanks for sharing your views Sidharth. :)


41 sandeep

hemant sir
can i invest in reliance gold saving fund through SIP 1000 pm????


42 Hemant Beniwal

Hi Sandeep,

If you are asking about feature – answer is yes. If you are asking should you invest – ask yourself & take wise decision.


43 Naveen

I changed my decision of making SIP of 2k in this fund, I would rather go with ETF.

Thanks Hemant.

Please advice on E-Gold of NSEL, I have just read in Business standard that it has outperformed others ETFs.


44 Hemant Beniwal

Hi Naveen,

Will very soon write on various investment options to invest your money in gold.


45 Aseem Chugh

Dear Mr. Beniwal,

Its very gratifying to know that at least some people are embarking on spreading financial literacy in our country. It would not be right on my part to comment outrightly on the product launched by our peer AMC. Being a CFP Certificant, I emphasize appropriate asset allocation to my clients and as you mentioned, “Investment is about having proper asset allocation; if Indians will make their networth statement they will find that they have good amount of gold”, I believe, its the form and not only the proportion that matters i.e. Jewellery can not be taken as a good investment option. Moreover, in your mention of Quantum AMC referring to the idea, I think, Vision without Action is mere day-dreaming, but Vision with Action can change the world. So, I would take this opportunity to wish Reliance AMC the best of luck for its endeavour. Also, I would urge all my investors and distributors too to go through this very well-articulated review and take wise investment decision accordingly.

Keep enlightening us with your valuable thoughts in times to come.

Thanks and Regards
Aseem Chugh


46 Hemant Beniwal

Hi Asseem,

Thanks for sharing you views – I am sharing a conversation that I had with someone in Mid July 2010. May be helpful for some readers:

Mr X “Hello Hemant,

Good data driven article. You left a very critical question open saying it should be part of portfolio but maintain allocation. What are your thoughts on following:

(1) We Indians hold quite a bit of jewelery. Almost every household will have some form of ornaments. Can that be considered as enough? Can can be considered as part of overall portfolio allocation?

(2) Or do you view jewelery as separate. What you really mean by asset allocation is, buy little bit of those commission sucking funds?

Looking forward to your thoughts!”

Hemant “Asset Allocation can be seen at 2 layers one at net worth(this also includes your investments) & second at investments.
As our home is part of Net Worth but not investments(if we don’t want to sell it for some goal).
Similarly the gold that we don’t want to use for any of the goals including daughters marriage will be part of our net worth & not investments.
People need to strike proper balance in both the layers.”

Yup I agree jewelery is pathetic investment but still it’s part of my networth.


47 AnaRoiter

Hi Hemant,

Great article and thanks for unbiased feedback. I had 2 questions:
1) Could you compare e-gold to this current NFO ( with pros and cons for e-gold)?
2) You mentioned some figures for CAGR, NAV, etc in the previous threads of your discussion with Paresh. Is there any formula for CAGR and NAV or you are using the original formula of CAGR. Was trying to calculate the figures myself and could not do it correctly. Hence the question.


48 Hemant Beniwal

Hi Ana,

I will do a comparison once this NFO is over – hope you are not in hurry.

Regarding CAGR I used excel (rate formula).



Hi Hemant,

NO QUESTION!!!!!! NO COMMENT!!!!!!!!!!




50 Hemant Beniwal
51 Mukul Agarwal

Hi Hemant,

Kudos to you for writing this article. You have clearly spelt out all the relevant details that any investor needs to know about this fund and also about Gold as an asset class. As you have rightly said, Gold can form a part of our asset allocation strategy wherein investing by way of ETF or this fund can be considered by the investors, purely based on their choice and convinience. I feel that investors eyeing to create corpus in gold aimed towards their children’s marriage can look at doing SIP in this fund as this is ensure disciplined savings every month so that the goal is achieved. Ofcourse, this comes at the cost of additional charges. But as i mentioned, its not investment, its just saving towards a defined goal to be met in future.

Thanks for taking the pains in writing this article. I look forward to read more such articles from you in future….


52 Hemant Beniwal

Thanks Mukul for giving a different perspective – keep visiting.


53 Mera

My noggin is spinning from all this knowledge.


54 Ankit Ku Mishra

Yuppp….gold saving fund for…..I don’t know Clint became rich or not but MF house defiantly earn gold.
Thanks to Hemant Sir.


55 Hemant Beniwal

Thanks Ankit.


56 satyaprakash

Honourable Hemant Sir, thanks from the bottom of my heart respected Sir, for having such a wonderful website. you are a great saint. You are doing a really tough job. wish you a great success in this endeavor!!!!!!!!!!!!!!
I have a question—-is there any difference in growth and dividend reinvestment options?


57 Hemant Beniwal

Hi Satyaparash ji,

Thanks for your wishes but I am just one out of all those who have commented here. Just sharing what I have learned over years.(still learning)

Yes there is a difference in growth & dividend reinvest. (I assume you are talking about equity funds – right now you will not find any difference in returns as there is no div distribution tax on such funds but in taxation there will be difference.) I will write something on this very soon.


58 Amit Saini

Dear Hemant,

Read your views and your explanation of finer points. Remarkable indeed.

Please give your inputs on the following.

I want to invest 1000 pm for next 15 yrs in gold, I am open to e-Gold, this new MF from Reliance, any other gold etf. This amount will go towards creating gold corpus for my two sons marriages hence not treated as investment. I have really understood the dual charges going to be borne if gone thru reliance gold fund route.

I checked with National spot exchange e-Gold, where minimum qty is 1 unit which is 1 gm of gold. At 20k odd levels/10 gm i need 2k to buy 1 unit which is more than my monthly allocation towards buying gold.

Before going through your review, I was planing to go for 5 micro Sip of 200/- each for different dates in a month (to get the best avg rate/month) and let it continue for 15 years.

e-Gold options seems to be the cheapest but going that way i will be buying 1 unit every 2 months and that too not in SIP way as i have to do it manually.

Please be find enough to guide me through my dillema. Do consider all the options while considering my needs as i have mentioned (gold corpus for marriage) and my input (1000 p.m).


Amit Saini.


59 Hemant Beniwal

Hi Amit,

I will reply soon – hope you can wait till closer of Reliance Gold Savings NFO. :)


60 Amit Saini

Hi Hemant,

Yea, i am on sidelines….no issues. Better to take a right turn a lil late rather than rash wrong one.


Amit Saini


61 RS

not an astrologer..but just a wild of the wildest guess..think gold proces are going to crash now..remember what happend when ADAG’s last BIG investment hype, safest haven came along ? ya..thats right..Reliance Power.. :)


62 Hemant Beniwal

Hi RS,

But the problem is “The markets can stay irrational longer than you can stay solvent…“. So never try to time the markets/assets & keep a proper asset allocation.


63 AnaRoiter

Thanks Hemant. Will wait for your post on the e-gold.


64 Mihir Vora

Dear Hemant,

I want to start invest in gold.tell me wht is best way to start invest in gold SIP or ETF my investment will be for long term investment around 10 years.

After going all the above comments i got little confuse on wht is the best ways to invest in gold.


65 Hemant Beniwal

Hi Mihir,

You are on the right track “Confusion is the first step of knowledge” – tomorrow morning I will add some more CONFUSION lets try out to find the solution for yourself.


66 Jay

HI Hemant

Fail to understand why are u against this fund It looks like an opportunity for the investor who are directly buying gold from the market. Dont try to spoil the image of Relinace. This company always give new to the customer. Does any other AMC thought about this …….NO. Why dont you see the taxation part of this fund, Reliance has given you the another asset class for investment.


67 Hemant Beniwal

Hey Jay,

Thanks for sharing your views.

First let me clarify that I am not trying to spoil image of Relaince – even most of my clients have their assets in different funds from Reliance. And this discussion is not about Reliance – they are manufacturer & asset managers; that does not mean everything they(Any AMC) produce suit everyone. Tomorrow morning I will be sharing 1 more article on the same topic & will appreciate your views there.


68 Gunjan K

Hi Hemant,
Thanks for the valuable article, please help me in taking the decison for choosing out good product for investment via SIP. I am confused where to invest in equity market or asset such as gold.I just want to start SIP in mutual fund.


69 Hemant Beniwal

Hi Gunjan,
As you said I just want to start SIP in Mutual Fund – My answer is EQUITY.


70 TFL

Dear Friends,

Just added one more article on Reliance Gold Savings Fund hope we can learn something. Also this article got published in Business Bhaskar Newspaper

Read in recent articles “Who Should Invest in Reliance Gold Savings Fund?”


71 sumit

In India we have only 1.5cr unique demat accounts (approximately), however atleast 30% of Indians buy gold for various reasons. Majority would be for self consumptions, however a large chunk of people buy gold as investment which will be used for their child’s marriage.Also across the country many people do a form of SIP in gold with their local jeweller, where their is a lack of transparency. I think Reliance is providing a platform to all that common man on the street. We all need to understand and appreciate that India is far beyond metros, sub metros and tier1 cities. People there also have a right to transparency and opportunity for an investment in a Gold as an asset class.


72 Hemant Beniwal

Thanks Sumit for sharing your views.


73 P Chakravarty

I believe that at the end of the day, this will help me, as an investor, to create wealth by using both the lumpsum and the cost-effective monthly SIP method. I also believe that anyone looking for an investment in Mutual Funds should ideally look not at a one-year horizon (and hence the load while redeeming my investment will not affect me), as it is unfair not just to the fund, but to one’s own goals. I believe Gold as an investment avenue is something which has been of interest for hundreds of years, as a long-term wealth-creation tool, whether it was my grandmother or my younger one’s to-be wife. And as you rightly said, not everyone has a demat account (I do not have one too). A financial-advisor friend of mine also mentioned that I can’t do SIP with the Gold Funds on the Exchange (I think they are called ETFs), and he also said that one should understand what is one’s ability to take risk and one’s investment orientation (?) for a specific goal and then decide upon the investment avenue. But, he also said Gold for the long term is good, and moreover, I will not be able to afford gold (some legitimate!!! quantity) on a monthly basis with my salary & responsibilities. Your input has built a lot of confidence. Sumitji, do you give regular advice on goal-planning; how can I get in touch with you and do it FAST. I have invested 10,000 Rs. already in Reliance’s Gold Fund and am putting in another 4ooo that my wife saved from her last two month’s expenses. We are also starting a SIP to take care of our elder one’s daughter’s education needs after 15years. While we will do the exact calculation of how much we need to invest for the ‘goal’ and in what all places I need to start the investment, but this is a good ‘muhurat’, and I will not leave it. Other friends who are in this phase of life should also look at this.


74 Amit $

Hi Hemant,

Its really great to have clarified all things in detail yet simplified manner.
May you please suggest me investing pattern for me in SIPs for monthly investment upto Rs.500. I am new in this area.

Amit $


75 Jitendra Solanki


Very good analysis.

Most of us tend to forget the real objective of investment and run behind returns what may the asset class be.If any investments is such worthwhile then do any of us as a distributor community invest in them.Possibly no.Because we take it as our business.
In a training session to Financial advisors, i was discussing how they can scale up their business.Some one ask me “Where to start from?”
I think this analysis is a good answer for this.You need to analyse every investment of your client in a neutral way then only you can add value to them.

Good work.



76 Hemant Beniwal

Thanks Jitendra for sharing your views.

I believe if someone is going down the wrong road, he doesn’t need motivation to speed him up, he needs education to turn him around. That’s what I am trying to do here. Yes sometime I write harsh comments but I think doctors sometime needs to give injection rather than sweet pills.


77 Tinku shaw

hello sir,
i am confused whether i have to sell reliance gold savings fund or not.I am AMFI certified adviser & want to give right advise to my client.plz tel me what to do?


78 Hemant Beniwal

Hi Tinku,

If you are talking about NFO – good advisor should not sell any Mutual Fund NFO. Read my views on the new article “Who Should invest in Reliance Gold Savings Fund”.


79 Debashis Basu

Confirmation bias, yes. But people posting here are also self-serving.
The same people are pushing the product in our site as well.


80 Hemant Beniwal

Ya Paresh is really active to sell RGSF to every Indian LOL.

I read your views on Reliance Gold Savings Fund “It is expensive and aimed at risk-averse investors, but would they know the risks inherent in buying gold as investment?”

I fully agree with you.


81 Debashis Basu

Congrats for excellent and comprehensive analysis


82 Hemant Beniwal

Thanks Debashish – I think its a big complement.

As Warren Buffet says, investors need to do very little things right as long as he/she avoids big mistakes. We just want the readers of TFL to be aware of what is going on and how NOT to make mistakes.

B/w these days I am reading “THE SCAM” written by you & Sucheta – It’s a master piece.


83 Ajay

Hello Hemant

Very Nice Article

Personally I think this mutual fund is beneficial to only those who do not have a Demat Account and want to take benefit of investing in Gold ETF

Also now from 1st Jan 2011 KYC is compulsory so people would have to get KYC and then invest in this

As far as the costs for Gold ETF are concerned with respect to the Annual Maintenance charges, the charges would be for all the securities the investor is holding so these charges would not only be for an ETF

I would give this mutual fund a miss and rather invest in GOLD ETF


84 Hemant Beniwal

Thanks for sharing your view Ajay.


85 Vijay

Hi Hemant,

I have gone thro..all the comments/views posted by all our friends….
i want to what is reason behind putting “Dual Recurring Expenses/Dual loads”? and why they are showing it is good investment option. they are charging more from cust. then that is good for them, nt for investors….
was they making invstors fools.. and i had chat with Rela..guys saying 1st min application 5k and will come to know how many units allocated is on March 18 2011, they have to declare at the time we buy, i think..wats logic behind this can you exlpain?
and i would like the thank you for extracting those small points which investors neglect most of the time…
Thanks All


86 Hemant Beniwal

Hi Vijay,

You have raised a very good point till 18th March you will not know how many units you will be allocated. That’s the reason in followup article I have clearly said BIG NO to Reliance Gold Savings NFO.


87 Prakash Praharaj

I agree that load is high.If some one has a demat account,we can advise to but gold ETF through the exchange.But if some one does not have a demat account and not willing to open one and at the same time would like to have the convenience of security, purity and easy of transaction,they can get it through the FOF route.However as financial planners we should explain the pros and cons and implications to the clients.


88 Hemant Beniwal

Hi Praksh,

Thanks for sharing your views.


89 Aditya

Dear Sir
[Keeping it short]

This article has helped me thwart one particular mis-selling effort from a bank. I would have fallen for it had I not read this article.

Please keep the great work going. Sincerely hope that you get a great following in the coming years.



90 Hemant Beniwal

Thanks Aditya

Keep visiting & sharing TFL with your friends.


91 Srikanth Matrubai

Excellent analysis.
But, somehow, I feel that you seem to biased against this Fund.
Yes, the fund has its negatives, but it also has some positives.
For someone, who has no exposure to Gold at all, this Fund is an excellent way to get an exposure and set his Asset Allocation right.
But, yes, you an expert and you are entitled to your opinion as much as Paresh is to his.


92 Hemant Beniwal

Thanks for sharing your views :)


93 Vaibhav Sharma

I have following questions. Any of you can help me ?

How was the response for Reliance Gold saving NFO ?
is it over subscribed? what are the collection figures?
When they going to allocate units?
At which NAV reliance gold savings fund will allot units?


94 shankaranarayanan

Dear Hemant

i invest abt 1500 rs pm on gold related schemes in grt chennai, which dont give me much return but still invest in it and buy physical gold after 15 months. I would like to know whether investing (SIP) say rs 500 pm on this fund for next 5 years is good compared to my GRT investment which is (1500* 15 = 22500 investment for that i can purchase 24000 rs worth of jewllery) i feel i dont get enough return for my investment over 15 months but as all Indians my family say gold is safe and it will only increase. im confused whether to invest in this SIP or not..


95 Hemant Beniwal


I will write one article on various ways to invest in gold – I will include your grt or similar scheme in that :)


96 Visahl Garg

Hi Hemant,

I read all the view and concept share by you for Reliance gold savings fund. Now as per the market going up this time can I invest in this fund as 1000/- rs per month. Please advise me.



97 Hemant Beniwal

Take your well thought decision.


98 Ajinkya

Latest NAV of Reliance Gold Savings Fund


99 saraswathy

how reliance banking fund SIP? now i want to invest in that fund. shall i open new a/c or shall i switch from reliance growth fund growth option. i am at present investing 10000 in reliance growth fund, i would like take 2500 from that and invest in other fund called reliance banking fund or reliance regular saving fund. Pls suggest which is the better one?


100 Hemant Beniwal

Hi Saraswathy,

I am trying to explain in simple – I don’t I will be able to actually do it.

My suggestion is don’t go for Reliance banking fund – if you check portfolio of any diversified equity fund you will find already they have heavily invested in banking & financial sector. So when you buy reliance banking fund you are just increasing your risk – which is not good for any investor.

Second if Reliance Growth fund is the only SIP that you have – immediately stop it & invest in 3-4 diversified equity funds.


101 manish

HI Hemant,
Nice article ..thanks for enlighting us.
I am thinking of NSEL account opening. I want to invest in gold & silver for long term.I may trade sometimes not very often. Kindly suggest is NSEL good or what all other options available.



102 shakil

if i invest in reliance gold investement what is return in after 1-2yrs??????
kindly mention in indian rs….


103 Kiran

Dear Sir,

I am Doing from past year in SIP every Month Investment of 3,000 Chosen 3 Funds..
1} Fidelity Equity Growth Fund
2} Fidelity Tax Advantage Growth Fund
3} Hdfc Top 200 Fund
Shell I invest in those 3 funds for 5 Years Sip Investments or Choose best for Investment Period of 5-10 Years


104 Hemant Beniwal

Hi Kiran,
These are good funds – you can continue your investments.


105 Kiran

Please suggest best 2 mutual funds monthly S.I.P of 1,000/- in each plan for 5-6 years investment..Now i am already investing monthly in previous message rather than that please suggest more two best S.I.P



106 Hemant Beniwal
107 Padmanabhan

Dear Hemant,

Seems I am a poor timer… I have yesterday started SIP with RGSF and today visiting your blog. I got it loud & clear about your first views (during NFO time) on RGSF. Should I continue the SIP or close it right away, please suggest.


108 Hemant Beniwal

Hi Padmanabhan,
It’s about asset allocation & expenses – we are OK on both the fronts you can have SIP in this fund.


109 Velu

Hi Hemant,

just like Padmanabhan me too invested in this fund (in SIP) two days back and read your article about this fund today. I am bit confused today dont know what to do?

Also I dont know about the taxation part mentioned here. It would be great if you just let me know in detail.

Also, your article is very easy to understand even to a layman like me (new to MFs).




i wantto invest in reliance gold saving scheme through sip


111 pHANI

Reliance MFs or their business are meant for their profits only and the investors who spent their money in their companies will get loss. – Self Experience.


112 Hemant Beniwal

Hi Phani,
Can you share what happened.



As on date what will you suggest to invest Rs.15000.00 per month for long time (10-15 years).


114 Hemant Beniwal
115 Srini

Hi Hemant,

Just read your articles which helps much to invest optimally. But not able to figure out issues in the portfolio, here are those,

1. Reliance Growth Fund : Rs.2000 per month (from 2009)
2. Reliance Growth Fund : Rs.4000 per month (from Jan-2011)
3. Reliance vision Fund : Rs.50000 (one time on Oct 2007)
4. DSP ML TIGER : Rs.50000 (one time on Oct 2007)
5. Birla Sunlife International Equity (Plan A) : Rs.50000 ( in NFO)
6. SBI Magnum Contra : Rs.2000 (SIP stopped after 3 years)
7. SBI Magnum tax gain : Rs.2000 per month (from Sep 2007)

Now stopped the Reliance Growth (Rs.4000) and started investing in Reliance Gold Savings Fund.

Can you advise where I can improve have better stabilized investments?

Thanks in Advance.


116 jatinder khatri

Is it wise to invest in reliance gold saving fund–growth fund, now a days through SIP, and will it give appox. 10% return after a year and what will be charges deduction after a year if some one want to liquidate it. If 10% not than what will be appox returns. pl confirm, Thanks


117 jatinder khatri

In fact i have started Rs 5000 SIP in reliance gold saving fund –growth plan . Is it good or what i am not clear ( first time investing through SIP ) and what will be the returns after a year and if want to liquidate what will be the charges ? pl reply


118 Ankur Sinha

Hi Hemant
Thanks for all your valuable suggestions and help
Can you pls suggest some ways to invest in Gold or we can just leave Gold and invest only in Equity Mutaul fund compared to gold ?


119 jasson

I have 30 thousand and I wish to invest the amount is such an investment plan where I will receive higher returns after 1 year. Please help me if there is any such plan you may send me an email on jasson1234


120 Ramesh

Hi. There is no place as such u can make HIGHER returns in 1 year. As such financial markets are bleeding without liquidity. Investing in equity needs more time to average price and returns. So have a longer time horizon to deliver good returns. Stay on fixed and debt instruments for a short time investment. Else disciplined investing in equity over a long term will fetch u good results.


121 Ankur Sinha

Hi Hemant,
First of all thanks for all your helpful advice.
I am planning to start investing in Goldman BEES gold ETF through my broker Angel Broking.
They are giving me delivery brokerage of .03 or 30 paisa in delivery.
which will come some where Rs7.5/- for 1 unit = 2500/-
Is this brokerage OK or i should negotiate with some other broker ?


122 Ramesh

All those who were negative on the Reliance Gold Fund..
A Simple Question!! What is the NAV today?????


123 abraham kadavil

I could not see your fund name and NAV in’ Business Line ‘ Why?


124 pandya ghanshyam

dear sir
i am invest planing rs.2000 per monty in gold.
what is best reli.etf or saving or goldbees etf.
ple. give me your best suggation


125 Sudesh Verma

It is eye opening. Tax on Gold Savings Fund !!! 4-5 years long term return in any Gold Savings Fund is low as compared to any other good Mutual fund even in this down market. People invest in Gold Savings Fund keeping in the mind of son / daughter’s marriage. But if it is taxed, it is horrible.


126 RD

Hi Hemant,
I’m investing in Reliance Gold saving fund. I started Rs 1000 sip in this fund on November 2011. Should i close this SIP investment in this fund? I’ve invested 6000 Rs till now. I’m getting lose. Now investment value is only 5600 Rs. Please give me the suggestion on it.


127 Rajesh Kumar Singh

Why is there a difference in returns between reliance gold etf and reliance gold savings fund for the same period?


128 Vivek K

This is generally due to the difference in the expense ratio of Gold ETFs and Gold Savings fund. Gold savings fund normally has 0.5% more expense ratio.


129 Rajesh Kumar Singh

dear sir
i am invest planing rs.1000 per monthly in gold.
what is best reli.etf or saving or goldbees etf.


130 Vivek K
131 Rajesh

sir… I want to invest in Gold mutual fund …plz tell me which fund is cheaper and able to give good returns in long term.


132 Pratik

I am planning to invest in GOLD ETF mutual fund scheme as SIP term. IF I compare return of equity mutual fund with a gold ETF mutual fund of last 1 year, than I finding lots of difference between them. So would you please suggest me any GOLD ETF mutual Fund for SIP?

Thanks in Advance.



133 jagpreet

Hello sir i have done my summer training from reliance mutual fund,patiala plz send me project report on gold saving fund


134 Ram

So today is 19 Sept 2012. What is the status of this fund?
Is it worth buying it or not in SIP?


135 p singh

hi hemant.

in the article “reliance gold saving fund should u invest ? ”
i did not understand the following lines.
1.5% on 8% comes out to be 19%.
2% on 15% comes out to be 13%.

please explain by giving an example.

p singh


136 Jharna

Hi..i want to ask that have already started this scheme since last two years while is this scheme worth while for a long run of around 25 years? I invest 2.5…..reply



I want to invest in Reliance Gold Savings Fund


138 Karthik

Hi i did not understand what is dual load pl explain it in simple way and also i could not understand wat the expences that one incur in order to invest in gold


139 lata

I want to invest Rs.2Lacs for 3 yrs. Can I invest in Reliance Gold saving MF as one time investment? Or simply invest in bank FD. @ 8.75% p.a.kindly advise.Rgds


140 Nivedita

Hi hemant sir,I read ur comment on rel gold fund.honestly speaking I dnt knw anythng abt investment,mutual fund etc.its tooo confusing for me..I wnt to knw tht wat is d bets thing to start as investment wise preferrably whose outcome wud b in investing in wud b a great help.


141 dhanya

hello good morning , how to invest in gold saving ? then who r all can invest in this? what is the procudures to invest ?


142 Kuldeep Thakur

Hi Hemant.
I want to invest in paper gold with the horizon of 10-15 years. Kindly guide me in this regard.


143 Nishant Uniyal

Dear Hemant

Would like to know your opinion about the following sips i have
uti opportunities 3000 growth
reliance opportunities equity 2500
uti bond fund 1500
canara robecco equity 2500
dsp black rock world gold fund 1500
5000 for NPS


144 Shajahan.R


When will grow up ,,, I will hold the Reliance gold SIP


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