Gone are the days when buying gold in physical form was the only option among investors to park their hard earned wealth. Investors today prefer the unconventional way to invest in gold.
Gold ETFs are mutual funds listed on NSE and BSE. ETFs are instrument offered by mutual fund houses that are listed on a stock exchange. It aims at representing a sort of ownership in an underlying security, commodity or asset.
Among other asset classes, gold is considered the most robust asset class as it counters the effect of inflation and exchange rate fluctuations.
As per the Securities and Exchange Board of India (SEBI) regulations, the purity of underlying gold in Gold ETFs should be 0.995 fineness and above.
Gold ETFs has got many advantages which physical gold does not hold. What is that attract more and more investors towards gold ETF? What makes ETFs a good match for your portfolio?
- Low cost
- Long-term capital gains tax
- Low cost
Unarguably, gold counters the effects of inflation, currency fluctuations and also performed as economically secure asset during times of recession.