Indians are fascinated by gold. So much so that investing in gold has been a tradition since times immemorial. People would buy gold and pass it down several generations. Gold has always been considered a safe investment option and there is a lot of sentimental, value attached to gold (and silver). India’s First Free On call Financial Advisory Moneymindz has observed that even today the most popular investments are made in gold, silver and government schemes like Public Provident Fund, Fixed Deposit, etc.
If you are also looking to invest in gold, you should certainly try Gold Exchange Traded Funds, whose principle asset is gold. It suits investors looking to diversify their portfolio with certain exposure to gold.
What are Gold Exchange Traded Funds?
Gold exchange-traded products are exchange-traded funds, closed-end funds and exchange-traded notes aiming to track the price of gold. Gold Exchange Traded Funds are traded on stock exchanges. India’s First Free Online Financial Advisory Moneymindz says that Gold Fund is an Exchange Traded Fund which invests in gold-producing companies. The rate of shares within a gold fund has to tally with the spot price of gold itself closely, with an assumption that the fund holds a major portion of in gold-producing companies or in the stocks and bonds of gold miners and manufacturers.
Investing in Gold Exchange Traded Funds doesn’t mean you receive or own gold. It means you receive the cash equivalent.
Features of Gold Exchange Traded Funds
Gold exchange-traded funds can be purchased online and placed in your demat account which is trade on the stock exchange by asset management company. You can enter/exit at any time.
- Quick and easy transaction
Gold exchange-traded funds can be used as security for secured loans. Apart from that, transactions are easy and quick to make.
The rates of gold are publicly available. This transparency is ensured. Checking the prices of gold at a point of time will tell you the value of your portfolio at that time.
Merits of Gold Exchange Traded Funds
- Small Denomination
Gold exchange-traded funds can be purchased and sold in tiny quantities. Approaching retailers will make you pay more money.
- Cost Efficient
You can purchase gold exchange-traded funds at the global price with no mark up.
You can be assured about purity because each unit is backed by the price of pure gold.
You can find out more about Gold Exchange Traded Funds by visiting www.moneymindz.com or giving a missed call to 022-62116588
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