Transparency plays an important role in investment which is available in Gold ETF. Gold ETF are the instrument that is based on gold prices. NSE gold recommends gold ETF to be the smarter option over any other form of gold. Buying Gold ETF is purchasing gold in electronic form. The fund behaves as a stock that can be bought by you from any broker. Gold ETF makes it easier for you to invest in gold. The investment objective of Gold ETF is to provide you with returns that closely correspond with the domestic price of real gold. They are easy to buy since you can even buy just one gram at a time. You can build up your gold portfolio to the level you want, just as you would with your bank or jeweler, only this is easier.
Statistics says that gold held in ETF securities European exchange traded product rose to a record 10 billion dollar. In June 2011 ETFs physical gold product held 5.2 billion dollar of metal and ETFs gold bullion securities contained 4.8 billion. People had started believing in circulating their money in each and every kind of investment.
- Gold ETFs offers investors an innovative, cost-efficient and secure way to access the gold market.
- It offers investors means of participating in the gold bullion market without taking physical delivery of gold.
- The Scheme offers only Growth Option.
BENEFITS OF ETF
- Potentially cheaper to have price exposure to gold price as compared to other available avenues.
- Quick and Convenient Dealing through Demat Account.
- No Storage & Security Issues for investors.
- Transparent Pricing.
- Mutual Fund Taxation.
- Listed and traded just like a stock.
- Ideal for Retail Investor as min lot size is one unit.
- Diversification: An ETF represents an investment portfolio, which provides diversified exposure to an asset class through a single investment.
- Global exposure: Some ETFs invest in a pool of overseas securities, offering investors exposure to a foreign market.
- Trades like a share: ETF units are traded like shares listed on a stock exchange. Moreover, market makers may be designated to promote the liquidity of ETF units.
- Low transaction costs: ETFs, in general have lower transaction costs than traditional open-ended investment funds. The transaction costs of trading an ETF are similar to those of trading stocks, including brokerage and other relevant fees and expenses payable for dealing through the stock exchange.
- Information Dissemination: ETFs being exchange-listed instruments need to comply with the information disclosure requirements of the relevant stock exchanges. The level of the index and the constituent stocks which make up the index are publicly available information that investors can easily access. Price quotations of ETF units for potential buyers and sellers are available even during exchange trading hours.
The gold ETF has been so popular and effective that banks also have started this service for the investors. Let us provide you the names of the banks and introduced this investment project for the fresher to secure their capital and earn benefits at a very good hand. The banks that have started this service are:
- Sibs gold ETF
- Gold ETF meaning
- Kotak gold ETF
- icici gold ETF
- Axis gold ETF
- Reliance gold ETF
- hdfc gold ETF
- motilal oswal gold ETF
Thus, the exchange trade fund has been so easy and accessible as the banks have been authorized this facility for investors. The smart traffic has started thinking of their future and initiated plans and ideas for their future betterment. Every individual is becoming independent and liberal from all sort of independency. Instead they are supporting their grandsons for launching new business. Intellect is the greatest gift with its capability and power human race is day by day developing and reaching far to the height of tranquility and success.