Gold ETF 2020: 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. According to data from the Association of Mutual Funds in India (Amfi), gold exchange-traded funds invested Rs 2,426 crore in the September quarter. It invested Rs 172 crore in the same quarter a year ago. Gold ETFs have performed better this year. In such a situation, if you are planning to buy gold, Dhanteras can be a better option for you. Know its benefits, how does this work and who should invest… ..
Investment of 5,957 crores in 9 months
202 crores in January, 1,483 crores in February, 195 crore rupees in March, 731 crores in April, 815 crores in May, 494 crores in June, 921 crores in July, 908 crores in August and 597 crores in September. Net investment has been made.
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.
- There is no hassle of buying and maintaining physical gold.
- Investing in the long term also gives good returns.
- It has the facility of investment through SIP.
- Investing in Gold ETFs is less volatile than investing in the stock market.
- Gold ETF does not have any problem regarding purity due to being in electronic form.
- Gold ETFs can be purchased online through a demat account.
- High liquidity means that 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.
- On physical gold you have to pay the making charge. But this does not happen in Gold ETFs.
How to invest in Gold ETFs?
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.
Money will be made even further
Divam Sharma, co-founder of Green Portfolio, says that investment in this asset class has increased due to better returns of Gold ETFs in the last one year. Coronavirus infection cases are increasing worldwide. The interest rate of central banks around the world is down. The stock market has reached pre-Covid level, which is likely to cause correction. In such a situation, gold seems to be the right option even further. Grow co-founder Harsh Jain said that investment in gold has increased due to the economic uncertainty caused by the coronavirus epidemic. Markets around the world have recovered from the decline, but there is uncertainty about the time to come.