An Analysis of Gold investment vis-à-vis other investment option: An empirical study of Indian capital market

Gold, despite of being an excellent investment tool has quite a few drawbacks like chances of theft, storage problem, transaction cost involved etc. This drawback can be taken care by a newer domain of investment i.e. “Gold Mutual Fund/Gold Fund”. This paper has tried to address the issue that it is better to invest in gold fund than to invest in Equity Mutual fund or BSE Sensex. Moreover, gold fund removes the limitations of traditional investment in gold bullions like no storage or cost of carrying or any chance of theft. It has also been empirically proved that investment in funds of companies whose assets comprises of investing primarily in gold mines provide a return either equal to or greater than investment in gold bullions [1].