Best Gold ETF in India 2012
72Why Invest in Gold ETF For 2012?
In this scenario of gold prices sky rocketing, investing in gold etf in India for 2012 is a wise choice that can yield great results very quickly. The returns from the gold are as good as the returns from shares given by well-performing companies. Invest in Gold without buying physical gold. That’s what a gold etf does for you. Typically, a unit of etf is equivalent to 1 gram of gold. Actually, gold etfs are open ended mutual funds available in the share market. They can be brought and sold just like any other share in the market. You need a valid dmat account to buy gold etfs. One of the major advantages of gold etfs are that it doesn’t need any locker facility like physical gold and the returns from the gold investment can be enjoyed directly during the depositing term unlike physical gold.
The Best Gold ETFs In India
- Gold Benchmark ETF
- Axis Gold ETF
- HDFC Gold ETF
- Kotak Gold
- Quantum Gold ETF
- Reliance Gold ETF
- Riligare Gold ETF
- SBI Gold ETF
- UTI Gold ETF
The Following May Lead to Decrease In Gold Price
- If the value of dollar like currencies increase in the global market.
- If United States increase the interest rates
- If the interest rates in India increase again, then people migh choose ‘Fixed Deposits’ in banks as an investment option and buying of gold might decrease.
Charges with Investing in Gold ETFs In India
The charges for each transaction lasts from .25 to .85 percentage depending on the provider and the annual charges will be upto 1 percent of your investment. These charges are incurred because of the charges for managing your mutual fund porfolio by making investments that gives you more profit than physical gold investment. Read on for the full explanation on this.
Gold ETFs give more Returns than physical Gold
A comparison between physical gold returns and several gold etfs profit are analysed and presented in the table below. You will see that for long term the gold etfs are more profitable. The reason for this is that the professionals who manage your portfolio foresee the price drops in gold and make small investments (like .10%) in other shares that give profit during that time period.
Physical Gold vs Gold Etf
SCHEME NAME
| 3 YEAR RETURN
| 1 YEAR RETURN
|
|---|---|---|
Physical Gold
| 17.42
| 27.05
|
Gold Benchmark ETF
| 20.49
| 25.31
|
UTI Gold
| 20.4
| 26.09
|
Reliance Gold ETF
| 19.8
| 25.44
|
Kotak Gold ETF
| 18.52
| 25.73
|
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