gold fund
Gold Mutual Fund
Precious Metals/Gold Fund
gold fund
Gold fund.
Gold funds are mutual funds or exchange traded funds (ETFs) that purchase shares in gold mining companies, companies that process and distribute gold, and sometimes the gold itself.
Investors purchase gold funds as a hedge against inflation and international instability -- both economic and political. Since the performance of gold as an asset class is not correlated to the performance of stocks, bonds, and cash, by adding such a fund to your portfolio you can help protect it against systematic risk.
Gold funds tend to be extremely volatile, so fund managers try to minimize risk by investing in a diversified portfolio, often purchasing shares in companies that operate in different regions of the world.