Gold exchange-traded fund is a special type of ETF that tracks the price of gold and the performance of the fund is exactly same as the performance of Gold.
Gold exchange-traded fund (or GETF) is a special type of exchange-traded fund (ETF) that tracks the price of gold. Performance of the fund is exactly same as the performance and price of Gold.
This should be the right time to do some investment in Gold and preferably in Gold Exchange-Traded Fund. Some reasons I can think of straight away are.
- Commodities all over the world has shown signs of weakness. This should be right time to start accumulating Gold.
- Gold is a commodity which does not loose its value when invested intelligently and with a long term view.
- Buying Gold from Institutions like HDFC / ICICI has an inherent problem of paying 5-10% higher value than market value no matter what offer comes.
- If you buy premium Gold Mudras from HDFC / ICICI they would not buy back from you when you want to sell and so if you sell in the market you would not get the right premium price which you paid when purchasing.
- You would get Tax benefit if you remain invested for 1 year or more but for Gold its 3 years.
If you would like to invest in Gold ETF’s here are few of them
- Kotak Gold ETF
- Reliance Gold ETF
- UTI Gold ETF
The performance of the above funds does not vary much and are all benchmarked to Gold price and you do not hold the risk of keeping gold in your lockers. Gold Exchange Traded Funds can be bought and sold like any other Stock on National Stock Exchange ( NSE ) but on Bombay Stock Exchange ( BSE ) and kept in your Demat account online
how to buy gold from stock markt, i have trading acct with hdfc and sharekhan, which institution have miimum brokarage for transections. Pl guide Shabbir
Brokerage depends on the plans and there is not one such brokerage for particular stock broker.
Can I buy Reliance Gold ETFs now? Is there any specific timing to buy this Gold ETF to get maximized returns?
Gold is something which you can buy anytime for a very long term investment.
Shabbir,
I am 26, bachelor. i am planning to invest in Kotak Gold mutual Fund through 3000Rs Sip. It is a fund of funds and has a higher expense ratio of 1.50% as compared to 1-1.2% for gold ETF.
Suggest me whether i should continue with kotak Gold mutual Fund or switch to gold ETF. my saving prospective is for 20yrs for my kids.
I am never a fan of Gold Mutual funds and if you have horizon of 20yrs you should also not opt for ETF but buy GOLD directly.
Do you do financial advise for NRI ?, If yes can list your contact mail id.
Nope. I don’t do financial advise for anybody apart from myself 😀 . Yes I do share my experience here on my blog.
Shabbir,
How long can i hold this units in ETF ?,
Should it be sold by end of every month ?
No. As long as you wish to hold.
Thanks for your information.
Hello Shabbir,
I want to know more about Gold ETF’s.
I made invested in Mutual Funds. How to invest in Gold ETF?
Is it same like buying share through demat account?
thanks
Suraj
Yes Suraj. It is same as buying any other shares.
Well that’s a brilliant idea! Surely the women folk will be very much excited to hear it.
Actually you cannot. If you want the physical delivery the best bet is to buy either through MCX ( for which you may need to pay VAT ) or through banks like HDFC / ICICI.
Is there delivery in ETF
foe rg. I want to have physical delivery of the gold is it possible