Gold ETFs

What is Gold ETF?

Gold exchange-traded funds are a type of open-ended mutual fund scheme that invest money pooled from investors in standard gold bullion. Investors who wish to own gold but not in physical form can easily invest in such schemes to diversify their portfolios, hedge the risk of inflation and get exposure and access to the gold market online.

Why invest in gold funds?

Safety:  Now you will no longer have to rent a locker or think about the safety of your gold investments with ETFs. 

High purity: Physical gold usually has purity ranging from 18-22 carat but gold ETF s buys gold of high purity. 

Anti-theft: Physical gold can be stolen whereas gold ETFs stores your gold in electronic format, thus making it anti-theft investment. 

Liquidity: ETFs are more liquid in comparison to gold jewellery. You can easily sell an ETF in comparison to physical gold. 

How do gold investment work?

Since these investments are based on the fluctuating rates of gold, they are less volatile when compared to equities. Though it doesn’t involve making charges unlike physical gold, you have to pay the brokerage charges and the fund management charges if you invest in gold ETF. Investment in Gold ETF is beneficial if you are planning to invest high amount for a medium term or indulge in regular trade. This type of investment comes with the dual benefit of stock trading as well as lower volatility on investments. This is an ideal investment for people who have a sound knowledge about gold trading.

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