Gold is a precious metal that has been use for coinage, jewellery and other arts throughout the recorded Industry. Bank Regulator like RBI also sometimes use gold to implement a monetary policy. Every Financial institution has gold as a large asset.

As of 2019, a total of 197576 tonnes of gold exists around the world. This is equal to a cube with each side measuring roughly 21.7 metres. The world consumption of new gold produced is about 50% in jewellery, 40% in investments, and 10% in industry.

In India, Gold is an emotional metal. On every occasion like Diwali, Akshay Tritiya and Marriage, everyone wants to buy gold jewellery from Shop. India is the Largest Gold importer in the World. Around 8000 tons of gold imported in India every year and 23% of total gold import done by India. But there is a problem with gold jewellery for investment. If you buy gold jewellery then you need to pay a making and sometimes if you exceed the limit of gold you need to pay a heavy fine to the Government of India Income-tax Department. In this situation, Gold ETF Funds comes in front to solve every problem.

ETF: – An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold throughout the day on stock exchanges while mutual funds are bought and sold based on their price at the day’s end. ETF trading is more flexible, freedom and more earning options than Mutual Funds.

Type of ETF: –

  • Bond ETFs – It might include government bonds, corporate bonds, and state and local bonds like municipal bonds.
  • Industry ETFs – It tracks a particular industry such as technology, banking, or the oil and gas sector.
  • Commodity ETFs – It invests in commodities including crude oil, gold or silver.
  • Currency ETFs – It invests in foreign currencies such as the Euro, US dollar or Canadian dollar.
  • Inverse ETFs – It attempt to earn gains from stock declines by shorting stocks. Shorting is selling a stock, expecting a decline in value, and repurchasing it at a lower price.

Gold ETF: – Gold ETF is one type of Commodity ETF those trade in gold. Gold as a commodity is slow-moving but a secure investment. Gold Price in the various year in India.

Gold Price in India

Anyone invest in Gold as a commodity in the last four year they got a huge profit. But those who are trying to Espace from trading because of fear have gold ETF as the best option. If you invest in Gold ETF it’s not mean that you are invested in physical gold.

Gold ETF Tax Rates: –

  • Investment Holding Duration Tax Gold Fund Short Term(Less than 3 Years) – Depending on the tax bracket of the investor.
  • Long Term Investment Holding(More than 3 Years) – Tax will be more than 20% with indexation.

Benefits and Risk: –

  • You can choose Gold ETF as a hedge and investment instrument.
  • Better Risk management if you invest your money through diversification.
  • Invest more Gold ETF diversify you will get a low risk.
  • When gold price fluctuates then Gold ETF also fluctuates. If this happens then you don’t have much scope to minimize the loss.

Gold ETF in India: –

Company NameLast Price%change 52 Week High52 Week LowMarket Cap(Cr.)
SBI Gold ETF4320.45-0.05%5135.753935330
Birla Gold ETF4447.90.20%54453798.6101
Invesco G-ETF4390.60.15%5599.9361050
Kotak MF-GETF423.25-0.22%508.138516
HDFC Gold ETF43.20.00%53.3936.66
UTI-Gold430.00%53.7536.35
Nippon ETF Gold42.170.09%51.535.84
Axis Gold ETF42.080.05%53.236.93

Top Performing Gold ETF Right Now: –

Name3 Years
Invesco G-ETF55.23%
Axis Gold ETF55.13%
Kotak MF-GETF53.95%
UTI-Gold52.67%
SBI Gold ETF52.46%
Birla Gold ETF51.41%
Nippon ETF Gold 51.09%

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