GOLD ETF Investment – Best option

POSTED BY Ragavan ON August 25, 2012 7:58 pm COMMENTS (10)

Wat is gold ETF ? Is it best to choose than mutual funds?

Hw to invest in ETF? SIP option avail? what i smin requirement?

What are charges for it? any brokerage ? Any lessor brokerage suggestion for same if applicable ?

10 replies on this article “GOLD ETF Investment – Best option”

  1. Ragavan says:

    plz elaborate on SIP or STP option. How to opt for it. What are charges how to redeem. Is this bet than gen mutual funds on getting returns.

    I dont like to trade with golds. I wud rather use SIPs to invest. Now issue is which to choose Gen MFs SIPs or Gold ETFs funds like SBI GOLD ETF or ICICI whch are giving great returns

    1. Dear Ragavan, in the light of the last reply, Please do nothing as of now. Please devote some time to read & understand. be it Gold based MFs or General MFs in your own language. All MFs are same, at least in working principal – To collect small amounts from so many small investors & then invest that amount into a single asset class like Shares or Gold or Debt papers or in a mix of these asset classes.

      Please read first & do not think of any return from your investment at this juncture, till you finish your readings.

      Thanks

      Ashal

      1. Ragavan says:

        k i ll start with QLET 1st.
        can u say which is good fund to start with min invst.
        i plan to start with 1k sips pm

        1. Dear Ragavan, you may start with HDFC Prudence as your first fund. You may invest 1K Rs. mly as SIP amount.

          Thanks

          Ashal

  2. Dear Ragavan, instead of answering your query dierectly. I w’d like to know from you – Are you aware of Stock ETF? If yes, please share the info on the same.

    Thanks

    Ashal

    1. Ragavan says:

      no i have no idea of wat is stock etf. i have read abt gold etf. their performances and all such. so just wanted to get insight of ppl here

      1. Dear Ragavan, No issue. Next question, Do you have a Demat account in your name for share trading & investments?

        Thanks

        Ashal

        1. Ragavan says:

          No. i dont have. I thought its just funds so cant opt for SIPs. it was in Demat form i cme to know last week. So only i thought to find best option to deal with it. So i asked how to transact in it. With lessor charges and its basics all details

          1. Dear Ragavan, here are the details. Gold ETF stands for Gold Exchange Traded Fund.

            As the name suggests, this is a MF where the underlying asset is pure Gold but the difference lies in the fact that you can sell & purchase the units of this Gold ETF just like any other share listed in the exchanges. So having a Demat account is a precondition to invest in Gold ETF.

            Alternate route & that too using SIPs & STPs in gold ETF is available via feeder funds. These feeder funds are called as Gold saving funds. You ‘ll invest your SIPs or STPs in to these gold saving funds & then on behalf of you, these funds ‘ll invest that money into Gold ETF of the same AMC.

            To invest or not to invest in Gold ETF or Gold saving funds ‘ll be a personal call.

            Thanks

            Ashal

  3. sanjay says:

    Dear Ragavan, sip is the best choice of investors for investment in gold.But there is no sip option.

    Regards,
    Sanjay

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