Public Mutual (PMB) now has a new fund that invests in gold ETFs, 90% of the fund will be in gold ETF (Exchange Traded Funds) s while 10% of the fund will be bank fixed deposits.
Do note that this is a Public Mutual e-Series fund, means that it can only be purchased via PMO (Public Mutual Online) and the minimum initial investment is only RM100 compared to the conventional funds RM1,000. Sales charge is 1%, management fees is 0.85%. In my opinion, is better PMB drop the sales charges and just charge the management fees to get more people onboard. The management fees is on the low side because this portfolio is a no brainer portfolio, almost all invested in gold, so it does not need to be actively managed (no stock selection, not so frequent buy and sell).
I think the general economic outlook we are looking at high levels inflation coming and as such gold products funds will become more popular now. I don't speculate on gold prices but I feel some portion of savings need to go to gold as an inflation hedge cushion.
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