Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu

Wealthgeo.com/Wealthgeo website Aim is to provide Financial Stock Market,Binary option trading,crypto currencies trade ,Forex trading and Feature and option trading and help in terms of investment ideas ,area for investments ,technical stuff related to financial markets for making wealth. After years of research i found the way to share financial market fundamental and technical info updates in this website. To know more follow and subscribe to this website.

GOLD ETF or SAVING FUND -WHAT TO CHOOSE

ETF which is called as Exchange Traded Funds are not only for Gold,There are other ETFs Too.This article will help you to understand the details of the ETFs and its feature.Also i have collected and provided the information about ETF vs Gold Mutual funds.One can choose either ETF or Gold savings Mutual Funds according to their needs.

Difference between Gold Saving Funds and Gold ETF’s ?


Gold ETF’s : Let’s understand this for a moment. In simple terms, these are financial products which invests in physical gold and tracks its pricing on day to day basis. These ETFs have their own expense ratio which is considered very high if compared to US market, but that’s the price we pay to invest in gold electronically. You need a demat account to invest in Gold ETF and you can trade these ETFs through stock exchange.


Gold Saving funds are nothing but mutual funds which invests majority of its corpus (90%-100%) in Gold ETFs (of the same sister company), a small portion might also be in money market instruments or some short term debt products. For example Quantum Gold Saving Funds of Funds as per its mandate can invest anywhere from 95%-100% in the units of Quantum Gold ETF’s, and rest in money market instruments and other short term debt products. But the important point you should note here is that the underlying investment is still gold, but not directly! It’s indirectly through gold ETF’s, and now as there are two layers in between, you pay charges two times!


So you pay charges for Gold saving funds and also for gold ETF’s, this part is generally not revealed by the agent who sells you these Gold saving funds. Also for the gold saving funds there are high exit load’s


So which one is better and which one you should choose ? 


We can’t make a general statement that one is good and the other is bad, because it’s not like that. If someone does not have a demat account and wants to automatically invest in gold each month through SIP, gold saving funds are the best option. But for someone who is conscious about the expenses and can invest through his demat amount each month, Gold ETF’s are a good option. But high charges will surely hurt in long run! One important point is that do not confuse gold saving funds with “gold mutual funds” which are mutual funds investing in gold mining companies, they are totally different.

Conclusion


A lot of investors are lured into these gold saving funds without giving any information on the charges, which is not right. Gold saving funds over a long-term can really eat away your returns because the high charges will cut a big pie out of the returns earned.



LIST of GOLD ETF and its Links Details:
Goldman Sachs Asset Management
GOLD ETF






UTI Mutual Fund
GOLDSHARE - GOLD ETF






Kotak Mutual fund
KOTAKGOLD - GOLD ETF






Reliance Mutual Fund
RELGOLD - GOLD ETF






Quantum Mutual Fund
QGOLDHALF - GOLD ETF






SBI Mutual Fund
SBIGETS - GOLD ETF






Religare Mutual Fund
RELIGAREGO - GOLD ETF






HDFC Mutual Fund
HDFCMFGETF - GOLD ETF






ICICI Prudential Mutual Fund IPGETF - GOLD ETF






Axis Mutual Fund
AXISGOLD - GOLD ETF

Birla Sun life Mutual Fund
Mutual Fund - GOLD ETF

1 comment:

  1. Good updates on Religare i got to learn here. For better returns learning is must. Sample calls can be learned by following service providers like epic research .

    ReplyDelete

GOOD ONE

Related Posts Plugin for WordPress, Blogger...