GOLD ETF
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Transcript of GOLD ETF
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Gold ETFs – Best Tool for Investment in Gold
SAURABH MAHESHWARI, INDEPENDENT RESEARCH ANALYST (SELF), NSE CERTIFIED MARKET PROFESSIONAL, www.nifty-analysis.blogspot.com
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Road Map for Presentation
Importance of Gold for Investment
Instruments Available for Gold
Conclusion
About Gold ETFs
Why Gold ETFs ?
Gold ETFs in India
Instrument Available for Gold
Gold Coins Gold Jewellery Gold Biscuits Derivatives of Gold Gold ETFs
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Comparison of Instruments Available for Investment in Gold….Basis Gold
JewellersGold Coins/ Biscuits
Gold Futures
Gold ETFs
Purchase & Sale Mode
Physical Form
Physical Form
Future Contracts
Demat Form
Security of Assets
Investor’s Concern
Investor’s Concern
Taken Care by Exg.
Taken Care by Fund
Transparency
Very Low Very Low High Very High
Impurity Risk
High High Nil Nil
Pricing (For Retail Investors)
Neither Standard nor transparent
Neither Standard nor transparent
Transparent and traded on commodity exchanges
Transparent and traded on NSE
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Comparison of Instruments Available for Investment in Gold….
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Basis Gold Jewellery
Gold Coins/ Biscuits
Gold Futures
Gold ETFs
Liquidity Low Low Very High Very High
Denomination
Available in Standard Denomination
Available in Standard Denomination
Available in Kg, 100 Grams, 8 Grams & 1 Grams
Available in 1 Gram & ½ Gram
Impurity Risk
High High Nil Nil
Wealth Tax Yes Yes No No
Comparison of Instruments Available for Investment in Gold
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Basis Gold Jewellery
Gold Coins/ Biscuits
Gold Futures
Gold ETFs
Price Risk High High Very High Very Low
Long-Term capital gain Tax
Applicable after 3 Years
Applicable after 3 Years
Not Applicable
Applicable after 1 Years
What is Gold ETFs ?
Gold ETF (Gold Exchange Traded Funds) are Mutual Funds Listed on Stock Exchange. The investment objective of Gold ETFs is to provide returns that, before expenses, closely correspond to the returns provided by domestic physical gold price.
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Gold ETFs…………
Gold ETFs are units representing physical gold, which may be in paper or dematerialized form. Gold ETFs are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of Gold, and to buy and sell that participation through trading of security on a Stock Exchange.
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14 Gold ETFs in IndiaSymbol AMC Unit
GOLDBEES Goldman Sachs Gold Exchange Traded Scheme
1 Gram
GOLDSHARE UTI Gold Exchange Traded Fund
1 Gram
IDBIGOLD IDBI Gold Exchange Traded Fund
1 Gram
CRMFGETF Canara Rebeco – Gold ETF
1 Gram
AXISGOLD Axis Gold ETF 1 Gram
KOTAKGOLD Kotak Mutual Fund – Gold Exchange Traded Fund
1 Gram
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Gold ETFs in India…..
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Symbol AMC Unit
QGOLDHALF Quantum Gold Fund – Exchange Traded Fund
½ Gram
HDFCMFGETF HDFC Gold Exchange Traded Fund
1 Gram
MGOLD Motilal Oswal MOST Shares GOLD ETF
1 Gram
SBIGETS SBI Gold Exchange Traded Scheme
1 Gram
RELGOLD Reliance Shares Gold Exchange Traded Fund
1 Gram
RELIGAREGO Religare Gold Exchange Traded Fund
1 Gram
Gold ETFs in India………
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Symbol AMC Unit
BSLGOLDETF Birla Sun Life Gold ETF
1 Gram
IPGETF ICICI Prudential Gold ETF
1 Gram
Conclusion
Gold ETFs – Best Tool For Investment in Gold
Gold ETFs can be held in Demat Form There is no Impurity Risk There is full transparency in terms of
pricing There is very High Liquidity There is no Wealth Tax, VAT, STT etc.
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Conclusion......
It is Simple, Safe & Trusted Gold ETFs can be converted into
Physical Gold because every ETF unit is backed by Physical Gold.
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