Sukra - Personal Finance

Gold ETF are exchange traded funds which tracks the price of gold.
Investors can buy/sell units from the stock exchange and each unit will be backed by physical gold held by the custodian of the scheme.
Gold ETF offers investors a way to invest in gold without the need to hold the metal in physical form.

Each Fund has different expenses, entry and exit loads. Choose the fund which has least expenses.

Requirements to Buy/Trade :-

• You need Demat account to hold your Gold ETF units
• A trading accoount in NSE

Benefits of Gold ETFs -

• Easy to invest.
• Safest way of owning gold.No Storage and security required.
• Investments are exemmpt from wealth tax
• If held more than 12 months, then the gain is treated as long term capital gains
• Dividents are exempt from income tax in the hands of investors
• Secuirties Transaction Tax (STT) is not applicable

List of GOLD ETF’s in India :-

Benchmark Gold ETF ( Gold BeES) :-

- Traded in NSE:GOLDBEES
- Each Unit will track 1 gram of gold
- First ETF for Gold in India
- Fund expenese 1%

Kotak Gold ETF :-

- Traded in NSE:KOTAKGOLD
- Open ended fund started in June 2007 by Kotal Mahindra to track the spot price of gold
- Each unit is equal to 1gram of gold
- 90 to 100% of the fund is allocated in Physical Gold
- Fund Expenses 2.5%

Quantum Gold Fund  QGF :-

- Traded in NSE:QGOLDHALF
- Each unit is equal to half gram of gold.
- Estimated annual expenses 1.25%

Reliance Gold ETF :-

- Traded in NSE:RELGOLD
- Fund by Relaiance Mutual Fund.
- Expense Ratio 1%

UTI’s GOLDSHARE : -

- Traded in NSE:GOLDSHARE
- Open ended fund started in 2007
- Each unit tracks 1 gram of gold