I want to invest in a gold exchange traded fund (ETF)…
Veer Sardesai: Oct 06 2008, 16:06 IST
…for the long term using a systematic investment plan (SIP). I am a government servant and a small investor. I have a demat account with FMS Securities, Ajmer. My queries are as follows: how many gold ETFs are there in the market? Please suggest the best gold ETF. For investing in gold ETF, is online demat/trading account compulsory? Can you buy gold ETF both on the BSE and the NSE? Which fund is better — DSPML World Gold Fund or gold ETF?
R.S. Chouhan, Ajmer
A gold Exchange Traded Fund (ETF) is a financial instrument like a mutual fund whose value depends on the price of gold. In most cases, the price of one unit of a gold ETF approximately reflects the price of 1 gram of gold. As the price of gold rises, the price of the ETF is also expected to rise by the same amount. Similarly, a fall in the price of gold will also be reflected by a drop in the price of the ETF. However, unlike a mutual fund, the units of a gold ETF have to be purchased or sold on the stock market. To do so, one needs to have a demat account and a brokerage account with an online brokerage like ICICIdirect, or you may purchase it through your local stock broker.
Most gold ETFs are traded on the National Stock Exchange (NSE), so you will need a broker who is a member of the NSE. There are five gold ETFs in the
R.S. Chouhan, Ajmer
A gold Exchange Traded Fund (ETF) is a financial instrument like a mutual fund whose value depends on the price of gold. In most cases, the price of one unit of a gold ETF approximately reflects the price of 1 gram of gold. As the price of gold rises, the price of the ETF is also expected to rise by the same amount. Similarly, a fall in the price of gold will also be reflected by a drop in the price of the ETF. However, unlike a mutual fund, the units of a gold ETF have to be purchased or sold on the stock market. To do so, one needs to have a demat account and a brokerage account with an online brokerage like ICICIdirect, or you may purchase it through your local stock broker.
Most gold ETFs are traded on the National Stock Exchange (NSE), so you will need a broker who is a member of the NSE. There are five gold ETFs in the
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Reader's Comments (16)| Post a Comment
Best Tax saving Mutual Fund scheme / Gold ETF Mutual Fund
Bhagirathsinh B Jadeja | 04-Oct-2012Reply | Forward Dear Sir, I am a 29 Year old employee from a reputed co. and yearly package of 3.30 Lack,already having PF saving but yearly my taxable amount is around 9000 to 10000, please suggest how to plan to save Tax and increase wealth Ple guide me to plan better tax saving scheme and if i invest in SBI GOLD ETF is better or not .I have one daughter and want to invest such that it helps for her education, marrige..
Nirav | 02-Apr-2012Reply | Forward Hi, My income is around 30,000 P.M. I have a one year old daughter. Please let me know good investment options for me. I want to invest such that it helps me for my daughter education, marriage and as well as how I increase my wealth by investing in different fields.. Thanks..
Re:- investing
Bibhu | 17-Oct-2012Reply | Forward Dear Mr. Nirav, first of all segregate your monthly income from ur monthly expenditure. how much u can save from that in investment. if looking for ur daughter marriage &edu, then invest in long term basis for 20yrs min., invst. take a edu plan from hdfc or icici which will help full after she complete 15yrs.
