Gold ETF – A Golden Opportunity..
People always want to invest in gold. We always have some sentimental attachment with gold. Gold plays a vital role in all special occasions of our life. But, ‘Is gold a good bet?’ ‘Is it really necessary to invest in gold?’ ‘How much I can invest in gold?’ There are millions of questions about investing in gold. Here we will find answer for few of them which are really helpful in financial planning.
Why should I invest in Gold?
Gold is considered as one of the best investments available to beat inflation. Gold reserve is a tool to determine a country’s wealth. So it seems like investing in gold is good bet. Isn’t it?
How to invest in Gold?
Once we decided to invest in gold, the next thing we should know is, "How to invest in gold?" There are many ways to invest in gold, like,
# Buying Physical Gold (Which includes Gold coins, bars & Ornaments),
# Purchasing Gold ETF,
# Purchasing E – Gold and
# Investing in Gold funds.
Physical gold has security issues which are not there in others. You need to protect them from fire, flood, thieves, robbers and what not. When coming to taxation, Gold ETF and Gold funds scores better than Physical and E – Gold. This means, investing in Gold ETF and Gold funds are better options left to us.
How to Purchase Gold ETF?
Now we know Gold ETF or Gold funds are better options to invest in gold. So the next question to be answered is How to Purchase Gold ETF? It is not that difficult. You just need a demat and a trading account to Purchase Gold ETF. If you already have Online Trading account , you can buy Gold ETF through that account. If you don’t have a demat account and if you don’t want to open one, you can go for Gold funds.
Which is the Best Gold ETF in India?
We always want to go for the best. We never want to lose our hard earned money. You have a demat account now. So “Which is the best Gold ETF in India?”. Before answering which is the best Gold ETF in India?, we should know the concept of Gold ETF. Gold ETF belongs to Mutual Fund and it is measured in Units (where as grams in case of physical gold). Gold ETF is investing the investor’s money in gold. Price of 1 unit of Gold ETF is approximately equal to the Price 1 gram of gold. Gold prices have direct effect on Gold ETF prices. Fund manager of Gold ETF fund do not have more active part as changes in Gold prices determine the price of Gold ETF. So, you don’t need to worry Which is the best Gold ETF in India? But there is small difference in the Gold ETFs of different mutual funds which is due to demand and supply in the market. If you are still keen to know Which is the best Gold ETF in India? and want to invest your money in that Gold ETF, you can take a help of your financial advisor/planner who can help you in this regard.
Is that All?
We know that Gold ETF is secure and is a better way to invest in gold as it also have tax advantage. But is it all about Gold ETF? The answer is NO. There are few more things to share about Gold ETF. We have seen before that, price of 1 unit of Gold ETF is approximately equal to price of 1 gram of gold. In physical gold (in general), we have 18K, 22K and 24K. The price of 1 unit of Gold ETF is equal to 1 gram of 24K gold price. The only difference is Gold ETF price is same throughout India where as physical gold price changes from place to place, sometimes even shop to shop. It is very important difference don't you feel so?
How much I can invest in Gold?
We find answer for most of the questions about gold investment, but there is an important question to be answered which is ‘How much I can invest in gold?’ The simple answer is – It depends! Every individual is not same, so are their needs. A person who has a daughter and saving for her marriage will have more gold in his portfolio when compared to another person who invests in gold just for diversification. You can consult your financial planner/advisor to find your risk appetite and once you found it, you can invest in gold as per your need and risk appetite. But always remember,
Too much of anything is good for nothing.
Investing in gold is a way to beat inflation. If you are really searching more ways to beat inflation you can avail our 30 min FREE financial consultation services by clicking the button below.