Investing in gold in our country is very much popular. Whether the educated service person receives bonuses in the office or income from a farmer’s crop. Gold is chosen for investment. Gold is always considered a risk-free investment. Often in India, the household gold continues to the generation and never sold. But whenever there is a disaster on the family, it also comes to work at the same time.

Gold ETF is a modern alternative to buying gold from traditional goldsmiths here. ETF is the Exchange Traded Fund which is open-ended mutual fund scheme.

gold etf

 

Gold ETF is a fund in which investors invest their money for gold. You can also invest in 10 gm, one gram or half gram in Gold ETF. Along with the price of gold, Gold ETF prices are also rising. You can buy it from your broker or mutual fund house.

Gold ETF units you have purchased are deposited in your demat account. Whenever you want to redeem these, you can take cash equivalent to the price of your gold ETF. In some Gold ETF schemes, you can also get the option to buy equally priced gold at maturity.

Benefits of Gold ETF

Easy to buy:

As we used to purchase gold from gold smith it becomes very hectic but Gold ETFs can also be bought online by staying at home, you do not need to go to the goldsmith to buy gold.

Easy to handle:

Gold ETF is lying in your demat account and there is no risk of missing or stolen. There is no hassle for the maintenance of gold. As if you keep real gold with you it’s is always a risk of missing and stolen.

Fewer Charges:

In comparison to physical gold as there is making charge (if brought in the form of ornament) and other charges , buying and selling of electronic gold takes very little charge, while buying and selling physical gold is more chargeable.

Also Read: What is Mutual Fund?

Guarantee of Accuracy:

I bet you that you can’t check the accuracy of gold as for your kind information gold comes in market with various carat such as 18 to 24 carat. The purchase of physical gold becomes difficult to guarantee the purity, whereas electronic gold is not physical, there is no appetite for adulteration.

SIP facility:

If you cannot afford to purchase gold in bulk, through Gold ETF you can buy gold in a fixed amount every month through ETF, hence it is called SIP. Thus you can buy one or half gram of gold per month. This is a great way to invest in gold for those who earn monthly income.

Also Read: What is SIP?

Purchase in small quantities:

Gold ETF can also be bought in units of one gram or half gram. But gathering physical gold in small quantities can be inconvenient. Reality is that you cannot buy real gold in such small quantity.

So if you are planning to invest in gold, then adopt the modern way of investing in Gold ETF and be sure to keep it in a demat account.