Comments on: Quantum gold savings fund – Fund of Funds

By: Srikanth Matrubai

Srikanth Matrubai — Tue, 30 Aug 2011 17:24:05 +0000

Gold recent sharp rise will see it going periodic price correction which will help SIP investors average their cost.

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.

By: Manshu

Manshu — Sun, 17 Jul 2011 22:28:41 +0000

Thanks for your comment Ajay – the point of minimum investment didn’t come to my mind, and if its 1.2% for ETFs with a gram of gold, then for Quantum which is roughly half a gram it is going to be 2.5%. Got it.

By: Ajay

Ajay — Sat, 16 Jul 2011 17:20:23 +0000

Manshu – 2.5% may be right. ICICIDirect charges 2.5% or 25Rs flat which ever is less for trade less than around 4500Rs (or 3500 Rs for another plan, they have 2 plans called as ISaver and ISomeThingElse)
On current rates of gold that turns out to be 1.2% (Rs25/Rs2100)

By: Manshu

Manshu — Tue, 17 May 2011 19:10:54 +0000

Entry load has been banned by SEBI so funds don’t charge entry loads these days. They charge annual recurring expenses which take care of managerial and other expenses. These are normally somewhere between 0.50% to 2.50% for most funds.

By: CA Anmol Wadhwa

CA Anmol Wadhwa — Mon, 16 May 2011 11:23:24 +0000

Except the entry load, does the fund have any other charges as well like Maintanence Charges, Insurance Charges etc ?

By: LalitC

LalitC — Thu, 05 May 2011 21:07:51 +0000

Firstly, FoF like Quantum Gold Savings Fund would avoid the brokerage, transaction and other sess and taxes. If you count those indirect expenses, even with .25% combined expenses, Quantum Gold Saving Fund would make sense. Secondly, you have to be active trader to buy ETF on exchanges. This fund allows SIP as little as 500 which is very convenient and disciplined approach. Unless and until you know exact time to buy the Gold ETF, you should believe in discipline of a SIP. Thirdly, Quantum would have less managerial expenses compared to other AMCs. Look at tracking error of Quantum ETF compared to other AMCs – which is one essential thing to look at while investing in EFT.

By: Manshu

Manshu — Mon, 15 Mar 2010 21:51:10 +0000

For this one the prospectus states that they don’t have any fees on top of the fee of the underlying scheme.

By: Manshu

Manshu — Mon, 15 Mar 2010 21:50:16 +0000

2.5% on commissions! That doesn’t sound correct, I did a review of the charges a little while ago, and for stocks they were significantly lower, and that is what I’d expect on ETFs also.

http://www.onemint.com/2009/12/21/icici-direct-brokerage-options/

By: Vinod Lalwaney

Vinod Lalwaney — Mon, 15 Mar 2010 12:13:13 +0000

My reasons for going for this
- It will Help me SIP onto a ETF.
- ICICI charges me ~ 2.5% brokerage on buy if ETF units, so on a buy+sell it comes to 5%. Inspite of the expenses, i think it is cheaper to go the FOF way, unless can suggest me some other brokerage houses which charge lesser brokerage – The min i have heard is from reliance money which is 1.2% (buy+sell).

By: Indian Thoughts

Indian Thoughts — Mon, 15 Mar 2010 05:43:39 +0000

Plus to me it seems that fund of fund means double fees