Investing in Gold ETF
ETF = Exchange Traded Funds.
This funds invest into physical gold. Like Equity fund manager ETF fund manager follows a mandate on how to utilize funds.
ETF trades in units which represent the Net Asset Value per unit.
Each unit usually represents certain fraction of physical gold.
Why ETF:
No tension of theft or burglary.
No tension of hidding gold in boxes or invisible corners/racks of the house.
Safe in case of natural calamity like Earthquake & Tsunami (Imagine house been destroyed & physical gold is inside your house).
Lastly u get fair price based on Net asset value (Imagine u buy physical gold & then when u try to sell it, goldsmith says “arey yeah to copper mix hai, or purity ishke sahi nahi hai”. Now you know whey goldsmiths are super rich.
Online transaction & Internet banking makes life easier.
No need of storing physical certificate if you have online Bank account (example I stay in Singapore, buy MF’s & stocks via Internet Banking).But u need to remeber ur online banking id & password.
Disadvantages of ETF:
If charter is not planned properly there will be erosion of wealth.
Secondly ETF management team takes a part of earnings has his salary.
Fund house takes portion every month as operating expense. (Per 100 rupee invested cost of Operating expense would range from .05 to .050 paisa.
My Suggestion chose Gold ETF with lowest cost of operation like SBI & UTI.
Liquidation takes 2 days somewhat like Goldsmith.
If you have baby girl or boy start investing now in Gold.
This will be help to fund their education as Equity is not always a reliable asset class.
Start investing in using Systematic Invesment plan Rs100 p.m.
Currently gold seems to be in consolidation phase.
I'm not Goldsmith by profession. I do personally invest in Gold as buying gifts for my parents n wife & via ETF.
Friends do read article by Prof Anil Selarka on Gold as an Investment Alternative.
This funds invest into physical gold. Like Equity fund manager ETF fund manager follows a mandate on how to utilize funds.
ETF trades in units which represent the Net Asset Value per unit.
Each unit usually represents certain fraction of physical gold.
Why ETF:
No tension of theft or burglary.
No tension of hidding gold in boxes or invisible corners/racks of the house.
Safe in case of natural calamity like Earthquake & Tsunami (Imagine house been destroyed & physical gold is inside your house).
Lastly u get fair price based on Net asset value (Imagine u buy physical gold & then when u try to sell it, goldsmith says “arey yeah to copper mix hai, or purity ishke sahi nahi hai”. Now you know whey goldsmiths are super rich.
Online transaction & Internet banking makes life easier.
No need of storing physical certificate if you have online Bank account (example I stay in Singapore, buy MF’s & stocks via Internet Banking).But u need to remeber ur online banking id & password.
Disadvantages of ETF:
If charter is not planned properly there will be erosion of wealth.
Secondly ETF management team takes a part of earnings has his salary.
Fund house takes portion every month as operating expense. (Per 100 rupee invested cost of Operating expense would range from .05 to .050 paisa.
My Suggestion chose Gold ETF with lowest cost of operation like SBI & UTI.
Liquidation takes 2 days somewhat like Goldsmith.
If you have baby girl or boy start investing now in Gold.
This will be help to fund their education as Equity is not always a reliable asset class.
Start investing in using Systematic Invesment plan Rs100 p.m.
Currently gold seems to be in consolidation phase.
I'm not Goldsmith by profession. I do personally invest in Gold as buying gifts for my parents n wife & via ETF.
Friends do read article by Prof Anil Selarka on Gold as an Investment Alternative.
one prime reason for timing the article this time is due to festive season coming up. we can get decent gains of 10% by 5mnths.
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