Religare Gold Monthly Income Plan Mutual Fund

Religare Gold Monthly Income Plan is an open ended income scheme which plans to generate income through a portfolio of fixed income securities, Gold ETFs, equity and equity related instruments.

As you may have already guessed, the monthly income is not guaranteed, and will be given only if the fund makes money.

There is a dividend and reinvestment option, and even within the dividend option, — if the dividend amount is less than Rs.500, then it will be compulsorily reinvested in the fund.

The minimum application amount for the growth option is Rs.5000 and for the dividend option is Rs.25000. There is no entry load on the Religare Gold Monthly Income plan, but there is an exit load of 1% if you redeem or switch out of the units within a year.

The asset allocation of this fund is dominated by debt instruments, followed by equity instruments and gold ETFs. Here is the suggested asset allocation:

Instruments Minimum Maximum
Debt and money market instruments 65% 90%
Equity 0% 25%
Gold ETFs 10% 35%

I really don’t know what to make of such a hybrid allocation, –  it is debt + equity + gold, — and is going to be actively managed. I am not sure how you should look at it when considering your overall portfolio because it is predominantly debt, but the equity and gold component is still high enough to bring in volatility.

Personally, when I am not clear about such fundamental things and unable to make up my mind, – I steer clear of  investments (but this is just personal preference, not investing advice).

A final word about its recurring expenses which are expected to be 2.25% of daily average net assets, which is about the range I generally see with funds in India.

Disclaimer: This is just a brief summary and personal opinion on this fund and not investing advice tailored for your individual situation.

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