Gold Exchange Traded Fund or also called gold ETF has been listed and traded on the major stock exchanges. These days this is considered as an easy gold investment which can be made on an online portal. Here, your investment is managed electronically wherein one unit is measured as one gram of gold.
As units of the Gold fund in India can be bought with the help of open-ended mutual funds, thus money which gets collected through the trading of the Gold ETF units is generally invested in gold only. It is said that the returns which are received from the gold ETF units are same as to the earnings which are made through the buying and selling of the physical gold.
So without a further ado, let us see what makes gold ETF a prudent investment-
As we all know that it is listed on the stock exchange with no SIP restriction and exit loads, investors can buy or sell gold ETFs anytime during the market hours and can reap the benefits from the volatility of the gold ETFs. On the other hand, one can also buy and sell the gold funds based on the daily NAV. Gold ETF is a very flexible investment tool where one can invest for a short, medium and long-term.
God ETF is tax efficient if compared to the physical gold. As, the prices of the single units are known to be same as the one gram of physical gold, so it is a great option for a long-term investment where one exempt tax and enjoy no STT(Security transaction tax). Also, you need not worry about the purity, quality, units, and weight of the purchase.
Here the Investors need not to pay out other expenses such as Demat account, brokerages charges, maintenance charges, etc. Plus, the value of gold ETF is rising up because of the Rupee’s strong position in the market.
Investors can invest in a hassle-free way as it is easily accepted and is accessible in every corner of the world.
Gold ETF is an open-ended mutual scheme that invests the money received from the investors in the standard gold bullion which is 99.5 % pure. Plus, the mutual funds are governed by SEBI, so it makes more reliable.
Gold ETFs are a great way to which one can hold on to the balance even during economic distress. According to finance experts, the future for the yellow metal and related bonds seems to be a booming one. It is quite evident that investment in gold ETF is a prudent choice.