Gold is considered to be an important traditional investment in many Indian households who buy and hold Gold for generations. Many families purchase Gold on the occasion of marriage or during the festive seasons like Deepawali and Akshay Tritiya etc. With the wedding season coming up in a few weeks, jewellers are expecting a further boost in gold demand. Apart from auspicious and cultural reasons, gold is also an important asset class from an investment standpoint. While the traditional way of buying Gold has been in the form of physical gold e.g. gold jewellery, coins, biscuits etc, investors in the developed markets usually buy gold as a financial asset e.g. Gold ETF or Gold exchange traded fund. Gold ETF in India were launched for the first time around 15 years back. Since then, the popularity of Gold ETF fund have steadily increased even though most retail investors still prefer to invest in physical gold. In this article we will discuss why you should consider to invest in Gold ETF and what it does to your investment portfolio.
Exchange traded funds (ETFs) are passive mutual fund schemes, which tracks a particular market Index like Sensex, Nifty, BSE – 100, Nifty – 100 etc. or prices of commodities like Gold, Silver etc. and tries to replicate its return. Gold ETF or Gold exchange traded fund track the price of pure Gold. Gold ETFs are backed by physical Gold. One Gold ETF unit is equal to 1 gram of gold and is backed by 99.5% pure physical gold bars. Gold ETF price can be found on the website of www.amfindia.com or on the websites of the asset management companies who have launched Gold ETF in India.
Disclaimer:
An Investor Education and Awareness Initiative by Mirae Asset Mutual Fund. All Mutual Fund investors have to go through a one-time KYC (Know Your Customer) including the process for change in address, Phone number, bank details, etc. Investors should deal only with registered Mutual Funds details of which can be verified on SEBI website (https://www.sebi.gov.in) under ‘Intermediaries /Market Infrastructure Institutions’. For further information on KYC, RMFs and procedure to lodge a complaint in case of any grievance, you may refer the Knowledge Centre section available on the website of Mirae Asset Mutual Fund. Investors may lodge complaints on https://www.scores.gov.in against registered intermediaries if they are unsatisfied with the responses. SCORES facilitate you to lodge your complaint online with SEBI and subsequently view its status.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.