Factors affecting gold (globally) and gold ETFs as an investment option .I have tried to give a detailed description about the factors which moves gold prices globally. Moreover I had put some light on mutual fund and ETFs as an investment option. I will also try to show the different ETFs launched till date.

OBJECTIVES:-

My project topic focuses on gold be it the factors which moves the gold prices or gold as an investment option.

Hence, the objectives summed up are:

• Study about different schemes of SBIMF.
• To explain why Gold is considered as a hedge against inflation?
• The demand and the supply of gold

To study Investment in GOLD ETFs and the benefits arrive from ETFs and comparison of different GOLD ETFs launched till date.

It has been tried to identify the pros n cons of investment in gold ETFs and scheme launched by SBIMF (GETS), the purpose for launching the scheme, asset allocation, features and benefits.

LITERATURE REVIEW :-

Now day gold is an important investment option in the world. When world was facing the recession every stock market, countries economy was going down at that time gold show his real value as an investment option over mutual funds, stock market and many other investment. In this assignment I will try to show the factors effecting gold and gold ETF market as an investment option. In the following review is all about the Factors affecting gold (globally) and gold ETFs as an investment option .I have tried to give a detailed description about the factors which moves gold prices globally. Moreover I will put some light on mutual fund and ETFs as an investment option. I will also try to show the different ETFs launched till date. I will also put some light on mutual funds and various schemes launched in the market particularly GOLD ETFs. I am going to identify and analyse the factors which moves the gold prices in a global context while on the other hand I was also required to put some light on GOLD ETFs as an investment option and the perspective of individuals towards it. The features which attract investors before investing in any specific schemes are its tax-efficient returns ,liquidity and efficient diversification.

WHAT IS MUTUAL FUNDS ?

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fundissues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unitholders.

(http://mutualfunds.about.com/)

DIFFERENT TYPES OF MUTUAL FUND SCHEMES-

Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurch