Last month, i.e. November, Indians invested around Rs 1,482 crore in gold ETFs. This is likely due to stock market volatility. Earlier, there was an investment of Rs 1,961 crore in Gold ETF in October and Rs 1,233 crore in September.
The confidence of Indian investors in Gold ETF is constantly increasing, in such a situation, if you are also planning to invest in it, then here we are telling you about Gold ETF
ETFs are based on the rise and fall of gold prices The ability to buy stocks similar to gold is called Gold ETF. Exchange traded funds are based on the rise and fall of gold prices. This is a mutual fund. In this, gold is purchased in units. By selling it you don’t get gold but an amount equal to the market price at that time.
It is one of the cheapest ways to invest in gold. It is purchased in units. A Demat account is required for the ETF. Gold ETFs can be bought and sold on BSE and NSE stocks.
5 benefits of investing in a gold ETF
You can also buy gold in small quantities: via the ETF, gold is purchased in units, one unit corresponding to one gram. This makes it easier to purchase gold in small quantities or via the SIP (Systematic Investment Plan). While physical gold is generally sold at the price of tola (10 grams). Often it is not possible to purchase gold in small quantities when buying from a jeweler. You get pure gold: the price of the Gold ETF is transparent and uniform. It follows the London Bullion Market Association, the global authority on precious metals. Different sellers/jewelers may offer physical gold at different prices. Gold purchased through gold ETFs is guaranteed to have 99.5% purity, which is the highest level of purity. The price of the gold you buy will be based on its purity. No jewelry making costs: A brokerage of 1% or less is charged for purchasing a gold ETF, and an annual fee of 1% must also be paid for portfolio management. This is nothing compared to the 8-30% deposit fees that jewelers and banks have to pay, even if you buy coins or bars. Gold remains safe: Electronic gold is held in a demat account, with only demat fees. get paid. Plus, there is no fear of theft. Whereas in the case of physical gold, in addition to the risk of theft, one must also invest in its security. Ease of trading: Gold ETFs can be bought and sold instantly without any hassle. The Gold ETF can also be used as collateral to take out a loan.
These gold ETF funds have given good returns
Fund Name Returns over the past yearReturns over the past 3 yearsReturns over the past 5 yearsNippon Gold ETF23%53%91%SBI Gold ETF22%55%93%Axis Gold ETF22%55%93%ICICI Prudential Gold ETF22% 56%89%Birla Sun Life ETF Gold17%55%94%
Source: Grow, December 9, 2024