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Gold ETFs Vs Gold funds

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Gold ETFs are funds that invest in physical gold of 99.5 per cent purity. A gold ETF invests 90-100 per cent in physical gold sourced from the RBI approved banks and 0-10 per cent in debt instruments. It is for this reason that Gold ETF returns are mostly in line with the prices of physical gold.

 

The minimum that you can buy in ETFs, is gold worth at least one unit, which is equivalent to one gram of physical gold, with the exception of Quantum AMC, which offers half a gram option for each unit. The units of gold ETFs are traded in exchanges and hence offer liquidity and the right price for both buyers and sellers. However, this liquidity varies across fund houses, which makes liquidity an important factor when investing in a gold ETF.

 

On the other hand, a gold fund is an open-ended fund that invests in a gold ETF. For an investor, buying a gold fund is easier because you don't need a demat account, which is required to invest in a gold ETF. However, this convenience comes at a slightly higher cost in the form of annual expenses of about 1.5 per cent of the asset under management, whereas it is around one per cent in case of gold ETFs. Investors in gold funds can invest through the SIP route, which is not possible when investing in the ETF. However, both these forms of investments in gold track the price of gold and have similar returns and little to choose from other than liquidity in case of ETFs.

 

As for converting gold ETFs to physical gold, most ETFs allow investors to convert only a minimum of one kg of physical gold, except Motilal Oswal's MOSt Gold shares which allows investors to redeem units for a minimum of 10 grams of gold.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

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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. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

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