ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Start ups
    • Funding
    • Appointments
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » Personal Finance News

Akshaya Tritiya: Should you invest in Gold ETF?

Best way to describe gold ETFs is that they are invisible gold but promising investment.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Akshaya Tritiya: Should you invest in Gold ETF?
Gold ETFs are open-ended mutual funds which are based on every fluctuation in the cost of gold. Photo: Pixabay

With the capital market being so advanced and at peak, there are a host of investment options available for citizens across India. If one is not satisfied with traditional schemes like fixed deposits, small savings, insurance or even recurring deposits, the market is well placed with a diversified investment tool like equities, mutual funds, debt funds, bonds, SIPs, commodities and futures. The only difference between traditional and capital market investment is that the latter is highly volatile does not give guaranteed returns. But there is no doubt that capital gains have been more compared to traditional ones since decades. When we talk about tradition,  one cannot forget that gold is also among this. On Tuesday, citizens across India are celebrating the festival Akshaya Tritiya, where gold, pieces of jewellery, diamond, silver and other metals demand are at higher levels. However, capital markets also have an attractive alternative for gold buyings, which not only is secured but also gives good returns. This is none other than gold exchange-traded funds (ETF). 

Best way to describe gold ETFs is that, they are invisible gold but promising investment. Gold ETFs are open-ended mutual funds which are based on every fluctuation in the cost of gold. One would wonder why they should opt for Gold ETFs than physical gold? Well to your answer, physical gold does not generate income and they come with host of charges such as making, custom duty and production cost. Whereas, one gold ETF is almost equal to 1 gram gold. The ETF gives both gold investment and stock trading benefits. If you have invested in Gold ETF, then as the price of gold rise so does the value of ETF which means more gains in your kitty and vice versa. They also come with low risk

Investors who are looking to diversify their portfolio along with some exposure to gold, can always choose Gold ETFs as their investment resort. They are best suited to conservative investors. Every penny that you invest in Gold ETF, goes to standard gold bullion of 99.5% purity. This indicates that even though being traded like companies on stock exchanges, the gold ETF comes with low risk. 

Here’s how you can invest in Gold ETFs!

The first step to invest in Gold ETF is similar like any equities. You will have to open a demat account at broking firms. You also need trading account online, where you can buy and sell your investment. This can be done by submitting identity proofs like PAN card, Aadhaar card, email address, mobile number and address proof. 

Once opened a demat account you can select your Gold ETF and order one. A investor also has an option to choose mutual funds with underlying gold ETF. This gives best of both worlds gold price rise and market rally benefit. 

The moment you buy your Gold ETF, in third step you will receive a confirmation on your registered mobile number or email address. 

In the last process, you should note that, a nominal amount as fees will be deducted as part of brokerage during the transactions. 

Gold ETFs one stop solution for gold lovers!

There are many benefits to why choosing a gold ETF is a wise decision. 

Among the most common is that, Gold ETFs eliminate the threat of fraud, theft, fire which is high in case of physical gold. You can easily seat home and just buy and sell gold ETF online, which gives more security. Hence, gold ETFs are quite flexible. 

Anything that is traded on stock exchanges, generally has high liquidity, and so does Gold ETFs. You can sell it during market hours at a current price. Apart from this, the brokerage charges are lower compared to physical gold fees. 

The price of 10-gram gold in 22 carat in Mumbai is priced at Rs 30,900 on the occasion of Akshaya Tritiya. The most minimum gram would be in 1 in 22 carat, which is available at Rs 3,090 currently. However, in Gold ETFs, you can buy units at much smaller denomination. Unlike physical gold, the amount is not fixed in Gold ETFs. 

The gains on gold ETF are not subject to sales tax, VAT or wealth tax. They are subject to long term capital gains which are set at 10% tax rate. 

Finally, the gold ETFs are traded on exchange platform such as National Stock Exchange and Bombay Stock Exchange. Hence, they are transparent, one can analyze the real time change in the prices and making their investment decisions. This also indicates, Gold ETFs are safe.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Gold ETFsAkshaya Tritiya
Written By: Pooja Jaiswar
Updated: Tue, May 07, 2019
07:13 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Gold ETFs offer better returns than Silver ETFs, says Mrin Agarwal, Founder of Finsafe Gold ETFs offer better returns than Silver ETFs, says Mrin Agarwal, Founder of Finsafe
Gold ETFs attract Rs 683 crore in November on emergence of Omicron Gold ETFs attract Rs 683 crore in November on emergence of Omicron
Akshaya Tritiya on May 14: Akha Teej alert! Sovereign gold bond, digital gold and ETFs—Check three options before buying physical gold  Akshaya Tritiya on May 14: Akha Teej alert! Sovereign gold bond, digital gold and ETFs—Check three options before buying physical gold
Hefty net inflows! Gold ETFs attract Rs 3,500 cr in H1 2020 - Here is why Hefty net inflows! Gold ETFs attract Rs 3,500 cr in H1 2020 - Here is why
Gold vs Gold ETF: Which one is best suited to make money? Check what experts say Gold vs Gold ETF: Which one is best suited to make money? Check what experts say

LATEST NEWS

Tech Mahindra Q3 Results Preview: Net profit likely at Rs 1,300 crore with 50 bps rise in margin

Indian stock markets achieve complete transition to shorter T+1 settlement regime

Indian women's team beat England to clinch inaugural Under-19 T20 World Cup

Pathaan box office collection: SRK starrer creates history, becomes highest gross opening weekend movie

Google Doodle celebrates Bubble Tea - check history, experiment, other details of this tea

Maruti faces semiconductor shortage, witnesses impact on production – here’s what company mulling as alternative

Market Capitalisation Update: Seven of top-10 BSE listed firms shed Rs 2.16 lakh cr; SBI, HDFC Bank among top losers

Odisha Health Minister Naba Das succumbs to bullet injuries hours after being shot by a cop

India vs New Zealand 2nd T20I Match Live Streaming - When and Where to watch IND vs NZ live today

OPPO Reno8 T 5G: Check expected price in India, launch date, specifications and other details

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV