From Goldaktienfonds clearly distinguish one must the so-called gold funds. They are by no means investing exclusively in gold.You do not invest – as you might initially suspect – in shares of gold mines. Based purely on the term one could first assume that the fund assets are bought exclusively gold.
But that is not the case, since the gold funds approved for sale in Germany are only allowed to acquire gold directly to a certain extent. The remainder of the fund’s assets are distributed among other forms of investment – for example certificates or bonds. Some fund providers even refrain entirely from investing in the commodity gold and instead buy other investment products from the fund assets.
The price of gold should be reflected by the fund, so that investors should also benefit from rising prices. The acquisition of gold is therefore not necessary for investors who only want to benefit from rising prices – according to the argumentation of the providers. However, you do not have a guarantee that the fund manager’s specifications will work. The goal of representing the gold price can also be missed. There is also the risk that the gold price itself will develop negatively.The term gold fund is often used by providers and press for gold equity funds. Investors should therefore clarify exactly how their money is invested and how each investment product works.
Gold funds are also managed funds that incur corresponding costs. High initial and management fees are always a problem as they reduce returns. So please inform yourself in advance about the costs incurred.