Skip to main content

Gold ETFs: An excellent alternative to physical gold

 

Holding Gold In The Electronic Form Offers Several Benefits To An Investor. Read On To Know More…

 


   Gold has been a traditional asset creation vehicle in India. It is popular as a hedge against inflationary pressures and is considered a safe haven for investors. Gold has historically shown a low correlation with stocks, which makes it a valuable component of any portfolio to smooth out any negative performance in equities. While the global economic meltdown of 2008-09 resulted in the plunging of stock prices, gold continued to hold strong and delivered appreciable returns even in those distressing times.


   Buying gold in India was earlier limited to physical holdings in the form of jewellery, bars and coins. But, with the introduction of Gold Exchange Traded Funds (GETFs) in 2007, investors have been presented with a smart route to invest in gold.


   GETFs invest in gold bullions, are passively managed and endeavour to track the domestic spot prices of gold. These open ended funds are listed on both the NSE and the BSE and can be traded (bought and sold) in units much like stocks. You need to have a trading account and a demat account to be able to invest in these funds.

THE FUTURE    

Emergence of GETFs have made life simpler for the investors as there is transparent pricing, efficient and convenient resale and hassle free storage. We can safely say that although paper gold in India is at a nascent stage, its future looks upbeat! Gold ETFs over the next few years has the potential to become one of the biggest asset generators for the mutual fund industry.
   

WHY PAPER GOLD?



Security-

Since the investment is in a non-material form, you don't have to worry about storage or security.

Quality-

SEBI regulations mandate the purity of the gold in GETFs to be 99.5 per cent or above.

Liquidity-

Gold ETFs can be traded on a real time basis.

Cost of buying and selling -

Brokerage rates applicable (between 0.5 to 2 per cent) are comparatively low.

Long term capital gains benefit -

Gains become long term on completion of a holding period of 12 months vis-à-vis 3 years for physical gold.

SUMMING UP    

The many benefits of paper gold over jewellery and bars have made it a good investment vehicle.


   Investors can strategically use it to diversify their portfolio and cushion themselves against losses in other asset classes.

 

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

SBI Magnum Taxgain

Grown 37 times in 23 years- SBI Magnum Taxgain Scheme   Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGet Rich on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300  

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

Mutual Fund Riskometer

Mutual Fund Riskometer   Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Down
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now