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

Mutual Fund Exit Load Changes

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 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
Read more

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...
Read more

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...
Read more

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
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