Skip to main content

Which is better investment in Gold? e-Gold vs Gold ETF

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Buy Gold Mutual Funds

Before investing in Gold, one should carry out comparative study on Gold ETF and E-Gold. Both are the two best investment in Gold in India. There are very little differences among the two. Both these products score very heavily when compared with Gold coin, Gold funds, Gold fund of funds, Ornaments etc.... The choice is limited to these two. Between the two, one should do detailed study. Both of these products have their own merits and demerits. Differences are very little. Still we can point out a few. Now we are going to do the comparative study of Gold ETFs and E-gold.

 

Parameters

E-Gold

Gold ETFs

1

What is?

E-gold is the dematerialized electronic units of Gold

Gold units are units representing Gold in dematerialized or physical form

2

Who run it?

National Spot Exchange limited

Various mutual funds own Gold ETFs and are listed in stock markets

3

How many?

E-Gold only (No permutation)

11 Gold ETFs run by 11 mutual funds

4

Where to buy?

From the online trading platform run by NSEL

From stock markets like NSE and BSE

5

Unit of purchase

1 gm

0.5 gm in Quantum gold ETF to 1gm in others

6

Physical delivery

as low as 8gm. 15 cities where you can take delivery

Mumbai only. Physical delivery of minimum of 1 kg.

7

Demat account

Separate demat account with NSEL

Same demat account used for stock markets

8

Wealth tax

yes

No

9

Long term capital gain tax

After one year

After 3 years

10

Short term capital gain tax

Before one year

Before 3 years

11

Liquidity

More or less same

More or less same when compared with leaders like GOLD BEES

12

VAT and Sales tax

No

No

13

Purity of Gold

99.5

99.5

14

Intra day trading

Yes

Yes

15

Trading session

10.00 am to 11.30 pm

9.00 am to 3.30 pm

16

Charges

1) Rs.10 per lakh as turn over charge

2) 60 Paisa per unit of e-gold per month as storage charge

3) Brokerages.

4) Transaction charge of Rs.1 per gram

5) Almost nil recurring expense

1) Brokerages

2) Annual recurring expense ranges from 1 to 2 %

3)Transaction charge of Rs.1 per gram

17

Price as on 17/03/2010

1700.80

1648.40

18

Price as on 24/10/2011

2714.40

2584.80

19

Return

59.60%

56.81%

20

Comparative price

Indian Gold price

International gold price

21

Impact cost

10 to 20 paisa

Rs. 4 to 5

 

Upon comparing the two, we can find out that there are fewer differences among the two. E-gold scores over gold ETFs in trading hours and expenses. Whereas Gold ETFs has lot of choices and competition and selection for the investors to choose from. Although some Gold ETFs have less liquidity in the exchanges, investors have the option of 3 to 4 Gold ETFs which are having good volume in the stock exchanges. With e-Gold, liquidity is not at all a problem. Volume of e-gold is picking up fast. Tracking error is almost nil with E-gold. Whereas in gold ETFs tracking error and expense ratio and impact cost come into play. Lastly, e-Gold is better investment in Gold than gold ETF in respect of less expenses, no tracking error, less impact costs, more liquidity, extended trading hours. But these differences combined make to return percentage gap of 2 to 3% between e-gold and gold ETF. Above said are the reasons behind the increased return percentage for e-Gold when compared with Gold ETFs in India

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

Health for Wealth - How to buy Health Insurance ?

Tax Saving Mutual Funds Online Current open Infra Bond Application form   HEALTH insurance is a relatively new phenomenon in India. Hence, it is not on the top of the mind for most people to make a conscious commitment towards health insurance. However, it is imperative for each one of us to plan for better health for our families and ourselves. There's no better way than to start with making health your top priority this year. So, your health insurance resolution charter would look something like: ■ Invest in health for wealth: Timely investment in health insurance can help build a security net and hedge sudden dilution of another financial asset class in the event of a health emergency, making it imperative to opt for a comprehensive health insurance plan. ■ Buy a comprehensive health cover that fu lfills your health needs for life: Buy a personal health insurance cover even if you have an employee cover because 'employer provided' health insuranc...
Read more
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