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Exit Guide

Characteristics of Gold ETFs

For how long do you need to invest?

Gold Exchange Traded Funds (ETFs) don’t have a maturity period. They can be bought and sold on stock exchanges anytime.

This makes them more liquid than Sovereign Gold Bonds, which have a long-term maturity period.

Where can you find Gold ETFs to invest in?

You can invest in Gold ETFs through your bank or your Demat account, or your investment broker account.

Pro tip:

An investment broker account is a virtual account from which you can invest in different investments.

What are the returns offered by Gold ETFs?

  • Gold ETFs track the prices of gold.
  • Therefore, your invested value rises with the rise in the gold price and declines with the fall in gold prices.
  • Since it is difficult to predict how the price of gold will change, you cannot be certain (sure) about the returns you can get.

What is the minimum amount you can invest every month? 

 

  • If you are buying Gold ETFs directly from the broker, Demat account website or mobile app, you at least need to purchase one unit of the ETF
  • The price of one unit of ETF can differ from fund to fund.
  • If you do not have a Demat account, you cannot invest in Gold ETF. However, you can invest in a Gold ETF FoF.
  • You can invest through the Lump Sum or Systematic Investment Plan (SIP) route for ETF Fund of Funds (FoFs).
  • An ETF FoF is a mutual fund that invests in other mutual funds.

 

  • These are also called Gold Mutual Funds.
  • The minimum investment required through monthly SIP can be ₹500/-. For some, it can be as low as ₹100 per month also.
  • The minimum investment for every lump sum can be ₹500 to ₹1000, depending on the Asset Management Company (AMC).

Pro Tip:

The minimum investment required through monthly SIPs can be ₹500/-. For some, it can be as low as ₹100 per month also.

Pro Tip:

The minimum investment for every lump sum can be ₹500 to ₹1000, depending on the Asset Management Company (AMCs).

Pro Tip:

Learn about SIP and Lumpsum investments in Mutual Funds here.

Pro Tip:

Learn about AMC here.

Sounds interesting. Keep scrolling to learn more about recurring deposits.

 

What are the features of Gold ETFs?

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    Virtual Gold investment.

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    Can be traded on stock exchanges.

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    No maturity period.

     

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    Low minimum investment.

     

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    Can be invested one-time or monthly.

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    Demat account needed to invest.

     

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    A type of mutual fund.

     

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    Tracks the value of gold.

     

What are the benefits of investing in Gold ETFs?

 

  • Better than investing in physical gold.
  • More liquid than Sovereign Gold Bonds.
  • Can be bought and sold anytime.
  • No maturity period.
  • The value of the investment is the same as the value of gold.
  • Can invest in units, SIP and lumpsum.
  • Available from various companies.

Scroll along to know about the things to be kept in mind while investing in a Gold ETF!

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