Before you invest in a gold investment fund: the 5 most important information you should know
If you are considering investing your money in gold through an investment fund, here are five essential things you should know before making a decision. This article will give you a comprehensive understanding of how a gold investment fund works, specifically the AZ Gold Fund, and the most important points that you should take into consideration to achieve the best possible returns.
1. What is AZ Gold Fund?
AZ Gold Fund is an investment fund launched in partnership between Azimut and another name (not mentioned), and is compatible with the provisions of Islamic law. The aim of the fund is to provide an investment opportunity in gold for investors, as the fund is managed by a specialized team to ensure achieving good returns on investment.
2. How to buy fund documents?
You can buy fund documents through financial brokerage companies or through electronic brokerage applications. In addition, you can buy directly from Azimut itself. It is important to know that there are ten companies licensed to participate in this fund, which facilitates the investment process and provides various options.
3. Minimum Subscription and Related Costs
- Price of one document: 10 Egyptian pounds.
- Minimum subscription: 100 documents, equivalent to 1000 Egyptian pounds.
- Redemption costs: If you redeem the documents before their due date, you will incur a fee of 4.99% of the document value.
- Additional fees: If you request to receive the gold itself instead of cash, you will also incur an additional fee of 2.4% of the weight of the bullion.
4. Subscription and order execution times
You can submit a request to purchase or redeem documents on any day, but operations are executed only on Mondays and Thursdays. If you submit a request on another day, the operation will be executed at the price available on the first subscription day (Monday or Thursday).
5. How is the price of gold determined?
The price of gold depends on the Egyptian Stock Exchange, which publishes indicative prices for gold through its official website and screens. This step reduces price variance and increases transparency in the market.
Investing: Gold or Mutual Fund?
Ultimately, the question remains: would you rather invest in real gold that can be purchased from a jeweler, or in a gold investment fund? The advice that is always repeated is to diversify your savings sources. You can invest in the fund while keeping some real gold, to ensure that you spread the risks and benefit from the advantages of both types.
Share your opinion:
Do you prefer to invest in real gold or through mutual funds? Tell us in the comments!