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Investment Tips: Invest money here on Dhanteras, you will get true trust like gold and easy investment like shares

Highlights

Gold ETFs are held in electronic form like mutual fund units.
Gold ETFs are also listed and traded on stock exchanges.
One can easily buy and sell Gold ETFs at any time.

New Delhi. Buying gold on auspicious occasions has always been a part of Indian tradition and in this festive season people have prepared to buy gold ornaments. As an investor, you can buy a variety of gold products and invest in it. With the changing environment, gold ETF is becoming a better option than investing in physical gold. In this, if you get true confidence like gold, then there is also a bumper return of the stock market.

In fact, gold ETFs also invest your money in physical gold and it is held in electronic form like mutual fund units, which are stored in a demat account. Each unit of Gold ETF is similar to physical gold of very high purity. Like every other ETF, Gold ETFs are also listed and traded on stock exchanges. Hence, one can easily buy and sell Gold ETFs at any time. So, this Diwali you too can create a double profit opportunity by investing in Gold ETFs.

Also Read – Earn Money: This Diwali, banks will shower money, a lot will be spent on Diwali – these stocks will give better returns

Advantages of Gold ETFs
Small Quantity Investment: Investors can start investing in Gold ETFs with as low as Rs 45, which is the cost of 1 unit of ICICI Prudential Gold ETF (as of October 20, 2022). In such a situation, an investor does not need a huge amount to invest in gold ETFs, whereas to buy physical gold, more money is required.

Affordability: The cost of investing in ETFs is much lower as compared to the purchase, storage and insurance of physical gold.

Reliability : The Gold ETF aims to buy gold of 99.5% purity or above, thereby protecting the customers from any kind of adulteration.

low cost: The cost associated with ETF gold is much lower as compared to investing in physical gold, as there is no making charge involved. For example, ICICI Prudential Gold ETF has an expense ratio of 0.5% which is the cheapest among gold ETFs.

Liquidity: Gold ETFs can be sold (liquidated) at any point of time on the exchange at real time NAV (Net Asset Value) of 1 unit during the trading hours. As a result, it is much easier than selling jewellery, coins or bars.

Also read – Bank FD: Now this bank will pay more interest on FD, customers will get up to 7.50 percent interest

Collateral: ETFs are accepted as collateral for loans, so whenever you need money in an emergency, you can take a loan through ETFs.

Tax Savings: If gold ETF is held for more than 3 years, then the income earned from it is treated as long term capital gain. This is a tax efficient way to save gold.

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Diversity: Gold ETFs can also be used as a tool to diversify one’s portfolio.

This information is important
ETF prices rise or fall like physical gold prices. As a result, gold ETFs are used as a tool to profit from the price of gold. That is, investors can get the benefits of investing in gold without buying the actual asset. On redemption, the investor gets cash and not physical gold. While investing in Gold ETFs, an investor has the option of investing through a Systematic Investment Plan (SIP) or a lump sum investment.

Tags: business news in hindi, Dhanteras, Gold ETF, gold investment

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