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Gold Exchange-Traded Funds (ETFs)

Gold Exchange-Traded Funds (ETFs)

The Gold ETFs offer an alternative to buying gold the old-fashioned way without having to worry about its holdings. Similar to mutual funds

it requires investors to create a Demat account and hold their gold units in a dematerialized form

Depending on the variety of funds a gold ETF’s unit may be 0.01 grams or anywhere between 0.5 and 1 grams


Fund houses provide gold ETFs which are traded on markets including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) It can be purchased by investors directly or through a stockbroker, much like shares






Because 24 karat actual gold is completely backed by gold ETFs there is little risk involved

If you want to invest through a brokerage company, the stock market gives it more legitimacy


Gold ETFs are liquid and have no set tenure however certain mutual fund companies provide investors the choice to redeem in actual gold

Although it seems like a nice alternative, it is typically impossible with a quantity of less than 100 grams Only during trading hours are the quotations available for trading


There are no entrance or exit costs the brokerage fees are paid each time you make a trade. The yearly cost of owning a gold ETF or the management fee may be assessed if you invest through the fund house The cost range for all the assets is mostly between 0.35% and 1% yearly






Since it’s in your Demat account there are no storage or insurance fees to pay


The goods and services tax does not apply to gold ETF Just any capital gains made by selling the ETFs must be taxed by investors


ETFs that track gold can be used as collateral for loans

With gold ETFs investors are unable to obtain gold loans.

Because of their liquidity ETFs are ideal for any investor with medium- or short-term investing intentions


Gold price In India

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