With the prices of gold soaring and reaching new highs, you might not be able to buy gold for your family, but you can increase the returns on your investment by investing in them.
This is possible by investing in Gold ETFs. Investing in Gold ETFs has a lot of advantages. Firstly it helps you to bank on the yellow metal when its price is soaring. Secondly, there is a lot of safety and ease in storage since they are not invested in its physical form, so the problem of theft is eliminated.
Investing in Gold ETFs, although, may seem lucrative, but need to be cautiously looked upon. If you are into a debt of a personal loan or even a car loan, try to liquidate any of your assets and prepay the loan and then invest into further investments. Analyze the pros and cons of each Gold ETF offering and then make a prudent decision of getting into one.
Make sure you pick the fund with the least expense ratio. Gold ETFs that were launched in May 2011 have the least expense ratio. Opt for that. Least expense ratio of 0.25% on the total investment is preferred. Although they can be considered a part of your portfolio, make sure it does not exceed more than 5-10% of your investment portfolio.
Opt for it only if you have managed to link all your financial goals to your investments, planned for your retirement and the higher education of your children etc. even paid all your dues and cleared the debt. Try to incorporate insurance in your portfolio as well. A comprehensive health and individual insurance package in your portfolio as it can guarantee to protect your family in case of any medical emergencies.