Gold Exchange Traded Funds are a way of trading Gold in stock exchanges. The advantage is, you need not store a physical gold, rather have the value in papers. Gold ETFs are also termed as paper gold. You could also buy/sell any time with out having to carry gold in physical form. Similar to Shares, you need to have a
Demat Account.
Currently, there are 6 Gold ETF companies in India:
- Gold Benchmark ETF (GOLDBEES.NS)
- UTI Gold ETF (GOLDSHARE.NS)
- Kotak Gold ETF (KOTAKGOLD.NS)
- Reliance Gold ETF (RELGOLD.NS)
- Quantum Gold ETF (QGOLDHALF.NS)
- SBI Gold ETF (SBIGETS.NS)
One unit of GETF is about one gram of Gold, however this depends on GETF. Gold ETFs carries additional costs like entry/exit load, brokerage charges etc. One has to look for
Expense Ratio while selecting GETFs. Custodian Banks appointed by the mutual fund companies takes care of safely storing the gold bought on behalf of the investors.
Srikanth Ramu
Posts
Hi Srikanth,
ReplyDeleteJust came across your blog and it is excellent. Indians love buying gold jewellery but there is very little written info on the subject. My family runs an Indian jewellery store in the USA and we also are writing our own blog. Can you please add it you your blogroll or make a post about us.
Thanks
Sameer
http://www.kaypee.com