Is Gold ETF a Good Investment?

Mutual Funds
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Is gold etf worth investment? Share thoughts.

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Yes, according to me Gold ETFs can be a good investment if you want exposure to gold without the hassles of storing it.

When I found out that each unit typically equals one gram of 24-carat gold, and the fund backs it with physical gold of high purity, I was convinced.

However, there were more reasons why I chose to invest in a Gold ETF. They are:

  1. Safe and convenient with no storage risks.
  2. Highly liquid since you can buy or sell anytime during market hours.
  3. Cost-effective because there are no making charges or locker fees.
  4. Transparent pricing as it reflects real-time gold rates.
  5. Useful for diversification and as a hedge against inflation or uncertainty.

Here is how you can start your investment journey:

  1. Open a Demat and trading account with a SEBI-registered broker.
  2. Select a Gold ETF listed on the exchange.
  3. Place a buy order through your trading account.
  4. Your Demat account shows the units once you buy them.

Lastly, returns of Gold ETFs depend on gold prices. You pay tax on short-term gains (within 3 years) as per your income slab, while long-term gains attract 20% tax with indexation.

Gold ETFs are simple, flexible, and a practical way to include gold in your portfolio.