investmenttype

Advantages of Investing In Gold ETF


Gold ETF or Exchange Traded Fund is a dematerialized or digital form of gold that runs at the same price as physical gold. The gold ETF funds provide peace of mind to all the investors as they can conveniently invest in online gold. There is no need to store online gold funds, and investors also exempt from the fear of theft which is quite associated with offline gold.

The gold mutual fund prices are based on offline gold prices, and one gold ETF is equal to one gram of pure offline gold, which is 99.5%. In recent years, gold mutual funds are increasingly becoming one of the most popular investment choices as they offer various benefits for investors. In this article, we will discuss some of the key takeaways of investing in gold ETF.

What is Gold ETF trading?

Investing in digital gold is quite similar to investing in stocks, and when you trade them, you don’t get physical gold in return, but you get the price equivalent in cash. Many investors love to invest in the electronic form of gold because of its transparency and direct pricing.Where Can Investors buy digital gold?

All the investors can buy a gold fund in India from BSE (Bombay Stock Exchange) or NSE (National Stock Exchange) from a broker by using a DEMAT trading account. Investors must also pay brokerage fees and minimum fund management charges while trading gold mutual funds.

Benefits of Investing In Gold ETF:

Safe Investment:

Unlike, physical gold investing in gold ETF funds is relatively safer and efficient as you don’t have to take the stress of managing and securing expensive physical gold.Easy To Trade:

Buying or selling physical gold can be daunting; hence trading in a digital gold fund is as easy as buying or selling any other equity. One gold ETF is equal to one gram of pure gold. One can invest in digital gold by their smartphone or contact their stockbroker, who will buy or sell the digital gold in their DEMAT account.

Transparency:

One of the best advantages of investing in the digital gold fund in India is all its prices are openly available on the stock exchange. You can check or sell the price of gold on a specific day or hour on the internet with ease.

Tax Benefits:

If you plan to invest in tax-saving equity, then investing in a gold ETF is one of the best options available in the market. There is no wealth tax on gold ETF; therefore, all your profit is yours as you don’t have to share it with the administration in the form of tax.Stress-Free Transactions:

Anyone can buy or sell digital gold from their comfort zone without stepping outdoor in the digital age. Investors don’t have to pay GST while buying or selling gold ETF; hence you can buy or sell digital gold from any part of the country.

All in all, buying and selling digital gold is rapidly becoming a popular choice of investment in the country. Many investors use gold ETF as security collateral while applying for a loan in India.

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