Another ever increasing avenues of investment in Gold is to invest in Gold Fund of funds. Not too many options are there to invest in Gold in India via Gold fund of funds. Mainly two companies are promoting these funds. They are DSP Black rock and AIG Investment in India. AIG World Gold fund and DSP Black Rock Gold Fund. These funds invest in Global gold funds, overseas mutual funds which invest in Gold and Gold related products, Debt and money market instruments. These funds claim to beat the return of Gold ETF and other Gold related investment in India.

The companies are claiming to offer the investors returns, superior to the returns of Gold ETFs and other investment in Gold in India. DSP Black Rock and AIG investment are offering Gold fund of fund as growth as well as dividend options. These are like mutual funds. We can buy and sell units of Gold fund of funds just like we sell units of a mutual fund subject to certain conditions. One thing to remember before investing in Gold fund of funds in India, is the risk in Gold fund of funds is more when compared with other avenues of investment like Gold ETF and e-Gold in India. Since the returns are more, the risk profile will also be more. Only those investors who can absorb and live with the risks can invest in this mode.