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POSTED BY ON August 2, 2011 10:21 am COMMENTS (5)
I am looking to invest in gold without physically possessing it. The want my returns to be aligned with the gold rates fluctations. Is there any way to do so.
Some points which I am considering are:
1. I want to do it online without physically possessing the gold coin etc.
2. These investments needs to be for > 5 years.
3. Can be sold online.
4. The returns should be aligned with the current market price of Gold.
Is there any way to do such investments? Whats are the suitable and reliable companies?
Thanks in advance.
-Vinay
2021 © Jagoinvestor.com All Right Reserved
@Vinay
You can get all the information u want in this article – https://www.jagoinvestor.com/2011/06/gold-saving-funds-gold-etf.html…. do read the comments also.
am just picking one of the comments made by Mr.Srikanth of fundsindia which will summarize the information u asked for.
“Please mention about brokerage charges for trading ETFs, and the demat maintenance expense when comparing costs.
My advice to my clients is simple – if you already have a demat account that you are using for stocks, go with gold ETF. If you are going to open one just for gold ETFs, don’t do that; go with gold savings fund instead. The Quantum gold fund has the lowest expense ratio – 1.25% which at the end of the day would work out pretty cheap.
Another important advantage of gold savings fund is the ability to invest in terms of rupees instead of grams or half-grams. You want to do a SIP of Rs. 1000 per month in gold? Gold savings fund is the only way to go. SIP of Rs. 5000, Gold savings fund will give you Rs. 5000 worth of gold. ETF will give you, say, two grams of gold leaving about Rs 600 on the table uninvested since you can’t buy fractional shares”
Note: Dont invest more than 10% of your monthly savings in gold.
Regards
Jagadees
Invest in GoldBEES, it invests entire amount in Physical gold, this is not the case with any other ETF.
The company is being taken over by Goldman Sachs, hence you can be assured about reliability. (But who knows if something like Lehman Brothers happens to this company ;))
@ Sanchay
Please explain why you have said other ETF do not invest entirely in Physical gold?
also, being taken over with goldman sachs doesnt increase or decrease the reliability.
ETF are directly linked with the physical gold reserves (or other underlying), and not with the holding company.
You may invest in Reliance Gold ETF, which fulfills all your criteria.
Is the NAV of a unit means 1 Gram of gold or something?