Gold ETF or Gold Fund

POSTED BY Amol Patgaonkar ON November 14, 2012 11:44 am COMMENTS (7)

Hi,

What would be better, to start SIP in Gold ETF through demat or Gold fund. I am investing through SIP in Kotak gold fund. Would it be better to start SIP in gold ETF like Gold BeeS instead of Kotak gold fund?

7 replies on this article “Gold ETF or Gold Fund”

  1. Dear Amol, on what basis you decide that 2500 Rs. mly is OK & you ‘ll reach your target?

    Thanks

    Ashal

  2. Amol Patgaonkar says:

    Hi Ashal,
    I am investing 2500 per month. I am doing it for my daughter’s marriage (After 20 yrs)
    I wanted to invest in Gold for diversification to add to my investment in PPF, NPS and SIP.

    Thanks,
    Amol

  3. Dear Amol, why do you want to invest in Gold at all in first place? How much you are investing on mly basis? Is it linked with any Goal or you are putting your money at stake just for sake of investing?

    Please clarify.

    Thanks

    Ashal

  4. sainath says:

    I agree with Biswa. Because the expense ratio will be twice in case of gold fund.

  5. Amol Patgaonkar says:

    Thanks for your help

  6. Biswa Singh says:

    I am not sure about the article but i have read many articles and investing in GoldFund is everywhere discouraged. Unfortunately in this article its been tried to convince that GoldFund is the best. For example:

    The demerit of GoldFund is that you can not convert it into physical form. But in the merit section of eGold ti is not mentioned that you can convert it into physical form. But the writer has carefully put the points like Delivery Charges, Making / Packing charges, VAT as its disadvantage.

    eGold demat is primarily for investing in gold and not buying physical gold. Its a option and if anybody wants that they have to pay these charges.

    The charges in eGold is the least as compared to gold etf and gold fund. Also with nesel demat account you can buy silver (there is no silver etf or fund), nicket, zinc,etc. This is a big advantage.

    Gold fund is good when you dont have huge money to invest and s you can invest small amount like 500 in gold fund.

  7. BanyanFA says:

    Hi Amol,
    It is a very interesting question and is often debated about. Both options have their pros and cons and in my opinion, it is better to invest via a Gold Fund rather than a Gold ETF. You can refer to my article which explains all the options to invest into Gold and the pros/cons of each one
    http://insight.banyanfa.com/different-options-to-invest-in-gold/

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