Why Gold?

1.       Store of Value 

2.       A Safe Haven

3.       Hedge against Inflation

4.       An effective portfolio diversifier

5.       The purchasing power of gold has remained stable over a long time period.

6.       During the times of financial crisis, economic downturns, national crisis, emergencies and wars etc., Gold has been a safe refuge.

7.       The official Gold holdings globally further strengthens the point.

What is an Exchange-Traded Fund?

Exchange Traded Funds or ETFs are the Mutual Fund schemes, whose underlying asset can be a commodity, an index or basket of assets, which can be traded on the stock exchange like normal securities.

Gold Exchange Traded Fund (Gold ETF) – Features

•        It is an Open-Ended Fund, which would invest in gold and track the spot price of gold.

•        Thus, it may be considered as a means of investing in gold without taking actual delivery of gold.

•        Units can be bought/sold like any other stock on National Stock Exchange.

•        Minimum Amount of Investment : 1 Unit   

•        One unit of Gold ETF will represent approximately One gram of Gold

•        Entry & Exit Load: Nil

Gold ETF - Advantages

•          Cost of Investing is much lower

•          Offer greater transparency to the investor

•          Offer small denominations to invest in

•          Tax Efficiency- Long Term Capital Gains after 1 Yr

•          No Wealth Tax

•          No concerns about the physical security, theft and purity