Introduction
Hello, everyone. In this blog, I’m going to share about Gold ETF investment and how investors invest in gold ETFs. As we know, in the past few months, gold has performed well, touched high prices, and created massive wealth if people invested in gold. GOLD ETF is one of the best investment schemes for those who don’t want to invest physically or digitally but want to expose gold, so Gold ETF is a good investment plan for the long term.
What is gold ETF?
GOLD ELECTRONIC TRADED FUND gives exposure to physical and digital gold, gold ETF tracks the performance of gold bullion having 99.5% purity.
Gold ETF is the most popular investment option for investor who want to diversify their portfolios, protect wealth from market volatility, and also help hedge against inflation.
What are the benefits of gold ETF?
1- Cost-Effective: Investors can start investment with Rs 50 whereas physical gold requires a huge amount but in gold ETF one unit of gold investor can buy at Rs 50.
2- Liquidity: Gold ETFs offer high liquidity because investors can buy and sell gold ETFs at any time like individual stocks.
3- Transparency: High Transparency is involved in gold ETF because there is no need to pay making charges, or storage charges, and no hidden charges are given. It provides real-time prices to investors and a high guarantee of purity is given in gold ETF
4- Diversification: Gold ETF protects the wealth of investors from the fluctuation of price and volatility and it diversifies the portfolio and hedges against inflation.
5- Expense ratio: In gold ETF there is expense ratio is very low compared to mutual funds or any other fund.
4 BEST GOLD ETF.
A) NIPPON INDIA ETF GOLD
Fund Name: NIPPON INDIA ETF GOLD.
SYMBOL: GOLDBEES
NAV: Rs 63.99.
AUM: Rs 15,248 Cr
Expense ratio: 0.81%
Minimum Lumpsump Investment: Rs 10000.
B) UTI Gold ETF.
Fund Name: UTI Gold ETF.
SYMBOL: GOLD SHARE
NAV: Rs 70.99
AUM: Rs 1473 cr
Expense ratio: 0.50%
Minimum Lumpsump Investment: Rs 1000.
C) Kotak Gold Exchange Traded Fund.
Fund Name: Kotak Gold Exchange Traded Fund.
SYMBOL: GOLD1.
NAV: Rs 70.04.
AUM: Rs 5221 Cr.
Expense ratio: 0.55%.
Minimum Lumpsump Investment: Rs 1000.
D) HDFC Gold Exchange Traded Fund.
Fund Name: HDFC Gold Exchange Traded Fund
SYMBOL: HDFCGOLD
NAV: Rs 71.73
AUM: Rs 6529 cr
Expense ratio:0.59%
Minimum Lumpsump Investment: Rs 1000.
Conclusion:
Past few months Gold has performed well and still it is performing so gold ETF is the best choice for investors who want to invest in gold but don’t want to buy digital gold, or physical gold as we know that physical gold buying is very tough for the retail investor, if a retail investor wants to invest in gold so Gold ETF is the best choice for long term and it will create good amount of wealth if invested timely so given above GOLD ETF is just for educational purpose so don’t take it as recommendation before buying any GOLD ETF first consult with your financial investors.