Gold Funds

A gold fund gives exposure through its actual portfolio, which may contain commodity certificates, derivatives, cash or other permitted holdings. Read the prospectus and current portfolio rather than assuming each unit is a redeemable gold bar. NAV values assets less liabilities per unit; the exchange price can trade above or below it. Fees, cash holdings, contract basis and valuation timing can explain differences from a physical-gold quote. In Sahmino, compare the fund’s price, NAV timestamp and percentage gap on the same basis.

Worked example (hypothetical)

NAV is 20,000 rial and price is 21,000: the premium is 5%. If NAV rises 10% but the premium vanishes, price becomes 22,000, a gain of about 4.8%, not 10%.

Check your understanding

Does a gold label prove identical returns to a particular coin? No. Compare the underlying exposures, costs and pricing times.

Sources, reviewed 5 October 2026

• Mutual Funds
• Net Asset Value
• Mutual Fund and ETF Fees and Expenses