First let us understand the advantages of investing in Gold ETF over investing in a Physical Gold.
An ETF is like a share so you can buy it from the broker like you buy any share.
- Held in Electronic Form
- Quick and convenient dealing through demat account
- No storage and security issue for investors
- Transparent pricing
- Taxation of Mutual Fund
- Can be traded on stock exchange like buying / selling a stock
- Ideal for retail investor as minimum lot size to trade is one unit on secondary market
- NAV of a unit will track price of approximately ½ or 1 gram of gold
and yes,
can invest as low as Rs.100 per month via SIP
lets suppose, you need about 250 gms of gold for your sister's marriage..
start buying regularly in gold etf, so that you can accumulate 250 gms gold by that time. its pure, liquid and tax efficient investment.
When each GOLD ETF is investing in the same asset (Gold) and all the gold ETFs will move up or down based on the price of gold, So, from where do you think that a significant difference in performance will come that you will be able to differentiate the good, the better the best in business?
Yes, there is indeed a differentiator!!!
yes it is true that all Gold ETFs are the same.
But, there is a difference in performance in each Gold ETFs. this is due to Expense Ratio and Tracking Error.
After painstaking research, I have zeroed in on RELIGARE GOLD FUND as the BEST Gold ETF as not only it has the least Expense Ratio among all the Gold ETfs but also the least Tracking Error.
What is this Expense Ratio??
The expenses are deducted from the fund and you will never feel its direct impact. The NAV will reduce to the extent of the expenses and then the price will adjust to the NAV.
Please note, if you are looking purely from a Liquidity perspective, then Goldman Sachs GoldBees is the one which is most traded on the stock exchanges, but if you are going through the Mutual Fund route, then RELIGARE GOLD FUND is the one I recommend.
Best of luck,
Srikanth Matrubai
Also visit
http://equityadvise.blogspot.com
An ETF is like a share so you can buy it from the broker like you buy any share.
- Held in Electronic Form
- Quick and convenient dealing through demat account
- No storage and security issue for investors
- Transparent pricing
- Taxation of Mutual Fund
- Can be traded on stock exchange like buying / selling a stock
- Ideal for retail investor as minimum lot size to trade is one unit on secondary market
- NAV of a unit will track price of approximately ½ or 1 gram of gold
and yes,
can invest as low as Rs.100 per month via SIP
lets suppose, you need about 250 gms of gold for your sister's marriage..
start buying regularly in gold etf, so that you can accumulate 250 gms gold by that time. its pure, liquid and tax efficient investment.
When each GOLD ETF is investing in the same asset (Gold) and all the gold ETFs will move up or down based on the price of gold, So, from where do you think that a significant difference in performance will come that you will be able to differentiate the good, the better the best in business?
Yes, there is indeed a differentiator!!!
yes it is true that all Gold ETFs are the same.
But, there is a difference in performance in each Gold ETFs. this is due to Expense Ratio and Tracking Error.
After painstaking research, I have zeroed in on RELIGARE GOLD FUND as the BEST Gold ETF as not only it has the least Expense Ratio among all the Gold ETfs but also the least Tracking Error.
What is this Expense Ratio??
The expenses are deducted from the fund and you will never feel its direct impact. The NAV will reduce to the extent of the expenses and then the price will adjust to the NAV.
Please note, if you are looking purely from a Liquidity perspective, then Goldman Sachs GoldBees is the one which is most traded on the stock exchanges, but if you are going through the Mutual Fund route, then RELIGARE GOLD FUND is the one I recommend.
Best of luck,
Srikanth Matrubai
Also visit
http://equityadvise.blogspot.com
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