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