Is charges more in Gold MF or Gold ETF?

POSTED BY Sunil Kumar ON May 2, 2011 11:48 pm COMMENTS (3)

Hi All,

How is buying gold different in Gold MF and Gold ETF different?

Which is less cheaper in terms of additional cost like brokerage, tax, exist load….?

Is there is any better way to buy demat version of Gold? If yes, then details, please.

Thanks

Sunil Kumar

3 replies on this article “Is charges more in Gold MF or Gold ETF?”

  1. Jagadees says:

    @sunil kumar

    Gold prices are rising in the past five years because global investors believe that gold to be safe asset as dollar will loose its value over the time to bloating debt in US govt balance sheet i.e. they are ditching dollars and taking shelter in gold…..
    The above condition can reverse if
    1. US federal reserve start to act prudently like our RBI or
    2. Their economy and unemployment recovers miraculously……

    For the dollar and rupee relationship on gold, u can read the following 2 articles to know more – http://moneylife.in/article/gold-all-told/15410.html#comment-12950#comment-13354 and http://www.tflindia.in/2010/07/should-indians-buy-gold-now.html

    Regards
    Jagadees

  2. Sunil Kumar says:

    Thank you very much for sharing your insight. Can you please clarify as how the gold price can go down after 5yrs(just taking some yrs)? How is it linked to Rs Vs Dollar ratio?

  3. Jagadees says:

    @Sunil kumar
    To invest in Gold ETF we need demat account which will have transaction charges each time u purchase and annual maintanence charges…..
    Gold MF product designed by fund house for people who want to invest in gold but dont have demat account. This gold fund is Funds of Funds scheme, so bascially they invest in gold ETF on behalf of investor money pooled…..
    NSDL has option to invest in e-gold…..

    You can visit this moneylife article to compare advantages, disadvantages, cost involved for the various gold investment options – http://moneylife.in/article/gold-option/15959.html

    I am really amazed in sudden jump in investors interest in commodities. If you graze through the recent forum questions, u will feel tat….so here is the standard disclaimer: Remember greater fool theory. Dont jump into the bandwagon of commodities just because it is keep rising for the past few years……Please analyze the pros and cons before investing in the commodities…… Try to keep within 10-15% of ur investment portfolio and diversify across all asset classes…..

    Regards
    Jagadees

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today