Compared to bodily gold investments, gold ETFs are identified to be inexpensive and provide an investor the pliability to buy as little as one unit of gold.
Industry consultants say, buyers have a boon investing in Gold ETFs as the acquisition is in digital type, and the investor doesn’t have to fret in regards to the storage and safety of the gold. Hence, the investor is saved from the effort of storage and safety and the fear of gold purity.
Who ought to put money into Gold ETFs?
Chintan Haria, Head of Product Development & Strategy, ICICI Prudential AMC says, “All investors should allocate to Gold ETF as a part of a good portfolio construction approach.”
Basis the necessities, consultants say buyers can make investments both in lump sums or in a staggered method by a scientific funding plan (SIP). Gold ETF permits an investor to buy as little as one unit (1/one thousandth gram ~ Rs 50 per unit).
Advantages of shopping for gold ETFs
Gold ETFs provide some distinct benefits. Since ETFs are held in digital type in a Demat account, an investor might be comfortable concerning issues like safety, storage and gold purity.
Haria explains, “An investor can buy or sell Gold ETF units just like an equity share on the exchanges during market hours through a trading account.”
He additional provides, “The convenience of investing in multiple of 1 unit (approx Rs 50) allows every investor to participate in the Gold ETF and makes it easy to accumulate units over a period.”
The value of acquisition of Gold ETFs is low given the absence of constructing fees and different associated bills.
Tax remedy of Gold ETFs
Gold ETF is a tax-efficient manner of proudly owning gold as earnings earned from Gold ETF is handled as capital features, short-term or long-term, relying on the holding interval.
“Long term capital gains (more than 3 years) are subject to 20 per cent tax with indexation benefits while short term capital gains get added to your income and are taxed as per the investor’s tax slab rate,” provides Haria.
Source: www.financialexpress.com”