Today >>

Gold Share Fund

In a recent series of opinion we have looked at where in the world one invests in a precious metal share and the factors that must be considered. Also, should one invest in a gold fund, holding a spread of gold shares, or in gold shares direct?What is a Gold Share Fund? It is a fund that holds a selection of gold shares in terms of the prospectus of the fund and bought to achieve the objectives laid out in that prospectus.

It may be that the investment manager of the fund buys and sells shares that he feels would better suit the fund's objectives so varying the shares held. It may or may not state that it aims at maximizing total returns. It may set a short-term capital gain objective and earn its fees based to some extent on performance, charging additional fees for that performance. Or it may aim to achieve this objective through a long-term performance.

There can be an enormous variation of objectives or a tremendous amount of leeway given to the investment manager in the fund.  So the first step of any investor is to fully understand what leeway he has given to the investment manager and what the objectives of the gold share fund are, in detail.