Gold ETFs: While mutual funds are withdrawing money from the stock market in a record boom of the market, the brightness of gold ETFs is increasing. In January 2021, about Rs 625 crore has been invested in Gold ETFs. At the same time, in the months of December and January, it has got an investment of about Rs 1055 crore. In fact, Gold Exchange Traded Funds (ETFs) have become the choice of investors as a safe investment in the last few months. In the era of coronavirus epidemic, investors have given more preference to Gold ETFs. Experts say that if investing in gold is a priority then it is a good option.
When how much inflow
625 crores in January 2021, 431 crores in December 2020, 384 crores invested in Gold ETFs in October 2020. 597 crores in September 2020, 908 crores in August 2020, 921 crores in July 2020, 494 crores in June, 815 crores in May and 731 crores in April.
What is Gold ETF
The best way to invest in paper gold is to buy gold ETFs. It is an open-ended mutual fund, which is based on falling gold prices. ETFs are very cost-effective. A gold ETF unit means 1 gram of gold. That too completely pure. This gives the flexibility of investment in stocks along with investment in gold. Gold ETFs can be bought and sold just like shares on BSE and NSE.
Benefits of Gold ETF
Gold ETF units can be bought like shares. Purchasing charge is less as compared to physical gold. 100 percent purity is guaranteed. It has the facility of investment through SIP. There is a track record of giving good returns in the long term. Investing in Gold ETFs is less volatile than investing in the stock market. It has high liquidity that means you can buy and sell it whenever you want. You can also start a Gold ETF with 1 gram ie 1 Gold ETF. Physical is cheaper than gold in terms of tax. Long-term capital gains have to be repaid on gold ETFs. Gold ETFs can also be used as security to take loans.
The right opportunity to invest in gold ETFs
Commodity experts believe that this is the right time to invest in gold ETFs. In fact, Sola is trading at a discount of around Rs 8000 from its record high. In August 2020, gold on MCX had crossed 56000 per 10 grams. On February 10, it is seen near 48068 on MCX. They believe that a lot of correction has come from the upper levels in gold. On the other hand the stock market is at its record valuation. Interest rates of central banks around the world are down. Markets around the world have recovered from the decline, but uncertainty has not ended. Due to this, further investors will invest money in gold as a safe investment.
How to Invest in Gold ETFs?
Gold ETFs can be purchased online through a Demat account. It is necessary to buy at least one unit for investment. Each unit is of 1 gram. Buying gold ETFs is like stocks. Gold ETFs can be purchased only from the existing trading account. Units of Gold ETF are deposited in Demat account. Gold ETFs are sold through a trading account only.