How to invest in Gold Exchange Traded funds
Gold Exchange Traded Funds (ETFs) is a commodity-based Mutual Fund that invests in assets Like gold. Gold ETFs has been the most popular investment products. While if you purchase gold in the form of jewellery, gold coins come at a huge price owing to its making charges. The yellow metal on paper through Gold Exchange Traded Funds comes at a price closer to the current gold rate. Theses exchange traded funds work like individual stocks and are traded similarly on the stock exchange.
Benefits of Gold ETFs
Here we have mentioned some of the key benefits of gold investments.
1. Tax Benefits- One of the key benefits of gold ETFs is to gain tax benefits. When gold ETFs are older than a year, they get tax benefits on long-term capital gains.
2. Easy Trading- To start gold investment you just need to buy a minimum of 1 unit of gold, which is equal to 1 gram of gold, for gold ETFs investments.
3. Simple Transaction- You can trade in gold ETF anytime from anywhere in trading hours.
4. Safe Asset- Gold prices do not fluctuate frequently, so even if your returns on equities go down, gold ETFs can protect your money from any losses.
5. Open Trading- Gold prices on the stock exchange can be viewed publicly. On the other side you also have an option to check the gold prices anytime during the trading hours.
6. No entry or exit loads- Gold ETFs do not include nay entry or exits loads, ensuring no additional charges when purchasing or selling these funds. Investors need to pay only 0.5% to 1% brokerage on transactions.
How to purchase a gold ETF?
For Gold investment all you need to have Demat and trading account then you can ask to your broker for ETF investments. If you are already buying/selling the stocks, then buying ETFs is simple.
Here how’s to buy Gold ETF online:
1. Log in to your account.
2. Go to Gold ETF options and select your desired ETF.
3. Place order to buy.
4. Do payment through your linked bank account.
5. The gold ETF units are credited to your demat account.
If you want to invest in Gold ETFs, you can visit the following links to open your account.
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