Saturday, December 31, 2011

Why Invest in Gold ETF Funds

      
Gold Exchange Traded Funds (ETFs) have become quite popular in the last couple of years with a number of asset management firms launching this ETFs.In fact Gold ETFs are the most popular asset ETFs in currently.The asset size of these ETFs has increased sharply with the increasing popularity of gold as an investment asset.Here is a listing of the Gold ETFs found in India  currently

                        Advantages Of GOLD ETfs
1.      Purchases can be made in small denominations: An investor can purchase gold ETFs in small denominations. For example, one gold ETF unit represents one gram of gold. Therefore, an investor can even buy small amount of units at a time and then accumulate more units over time to shore up his investment.
2.      No worries about quality: When buying a gold bar or gold coin, a buyer has to make sure he buys it from a trustworthy source, lest he gets saddled with gold of lesser purity. There have been instances when one has paid for a 24K/10 gram gold coin and has got a 19-20K/10 gram coin. This cannot happen in the case of a Gold ETF as an investor does not need to take physical delivery of the gold.
3.      Convenient resale: Since Gold ETFs are traded on the exchange, an investor can buy or sell units easily anytime during market hours. Try comparing this with the headache of selling a gold bar, coin or jewelery. An investor always tends to lose some amount towards making charges in case of jewelery and banks do not buy back gold coins, even when purchased from them.
4.      Hassle-free storage: In case of Gold ETFs, there is no hassle of storage as it is in demat form. In case of gold bars, coins or jewelry, one may have to hire a bank locker, which again comes at a considerable cost.
5.      Taxation: Physical gold needs to be held for three years or more to be eligible for long-term capital gains. If physical gold is sold before the stipulated period of three years then short-term capital gains tax will be applicable. Comparatively, if Gold ETFs are held for less than a year, then the gains fall under short term capital gains. This means, that gains are clubbed with the overall income of the investor and depending on the tax slab he falls in, taxes will be applicable. Further, if the Gold ETF units are held for over 12 months; then the gains are classified as long term capital gains tax, where the investor will pay either 10% on the gain (profit) without indexation or 20% with indexation, whichever is lower.

                        Different ETFS available in India

1. Benchmark Gold BeES
2. UTI-Gold ETF
3. Kotak Gold ETF
4. Reliance Gold ETFs
5. Quantum Gold Fund :
6. SBI Gold ETFs
7. Religare Gold ETF
8. HDFC Gold ETFs
       9. ICICI Prudential Gold ETF

       

      Related Articles

9 comments:

  1. Hi Ashish
    Nice post do visit - www.bhavikkshah.blogspot.com

    Your regular reader
    Amit

    ReplyDelete
  2. Stock market is a place where many new stock market traders join the share trading league daily and trade daily in SHARE MARKET NSE BSE FREE TIPSNSE and BSE. Intraday traders, stock market investors and market beginners should understand the meaning of the stock market for beginners cutting the learning curve
    Regards
    BIGPROFITBUZZ TEAM

    ReplyDelete
  3. Hey

    Very Nice post...you always posts good blog...Please Keep Continue

    Thanks
    BSE NSE

    ReplyDelete
  4. Nice post. Thank you for sharing. Stock market trading can fetch you a lot of profit if we play it smart.

    ReplyDelete
  5. Share trading is very easy if proper hardwork & study is there.If you want to make quick money in market then always trade in blue-chip stocks.never trade in highly volatile & illiquid stocks.Because may be these stock can give you good return but once you stuck in these stocks then you will loose your capital too. SHARE MARKET FREE TIPSBefore trading always select a scrip you want to trade & then give at least half an hour to that particular script after market.This will tell you how the script moved in whole day.Do this atlest 15-20 days.After some time you will get the levels on which it get support& resistances or the range that it is showing .Try to invest half of your investment amount to that script & If price comes down then make the average with your remaining amount.Then wait for a good level for the script.Never trust anyone advise with checking his credibility &accuracy. This will the best process by which you can make a handsome profit without risk.
    Regards
    BIGPROFITBUZZ TEAM


    ReplyDelete
  6. SHRISTOCKTIPS is a stock advisory firm which provides intraday equity, intraday future, intraday nifty & Intraday option tips. We have 85% accuracy in all our tips. We provide tips through sms and yahoo messenger. you can take our 2days free trail to check our services though these two days are not enough to judge anyone’s service yet we do our best on daily basis to provide you the best call in the stock market. You can take trialSTOCK MARKET TIPS INTRADAY, COMMODITY TIPSBut the safe way to check the trial is to never trade on the calls just check the timing of the call & check whether the calls are hitting the target or not. In these two days you will come to know that the accuracy & the timing of the call are Up to satisfaction mark then only you can take the risk in share market Never join us. Without testing our calls. we do not make fake promises or commitment that we will make your money double in stock market. Remembers market is not a gamble it is like a business in which you need patience plus knowledge. We have both if you are ready to learn the stock market. Basic then only you have the right to earn otherwise it is 100% sure that you will lose your all capital if you play as a gamble or without knowledge in this. First learn the stock market with our calls then earn handsome profit with confidence not with coincidence.
    Regards
    SHRISTOCKTIPS TEAM

    ReplyDelete
  7. Investors should have the fair knowledge of the stock market to be proactive and take control of their financial investments.
    stock Market tips
    Commodity tips
    Equity tips

    ReplyDelete
  8. Share Market Investment made profitable by SHRISTOCKTIPS- Get NSE/BSE Tips via SMS and Yahoo Messenger. As suggested last week that NIFTY & NIFTY stocks has shown consolidation. Till now consolidation is not completely over so we suggest all the traders not to trade with a heavy quaintly. Best strategy one can follow in theNSE BSE, INTRADAY TIPSmarket is can make a buy position at current level 6100-6150 & can do average around 6000-6050 with stoploss 5900. This is best strategy trader can follow to earn a good profit. NIFTY is still in consolidation phase but it is sure that NIFTY has entered in the bullish trend so be in the buy side to earn a handsome profit. For further updates you can visit our website.
    Regards
    SHRISTOCKTIPS TEAM

    ReplyDelete
  9. Today indian share market is so fluctuating that it is very hard to work & earn money but some companies giving really very good calls so that we can earn in this Share market.Epic Research is one of them. They are giving regular 5-7 calls and Best Stock Tips with high accuracy. Go for Free Share Market Tips

    ReplyDelete