Let's know about Gold ETF …
What is Gold ETF (Exchange Traded Fund) There is only one type of mutual fund which invests in gold. The units of this mutual fund scheme are listed on the stock exchange.
Now getting only 7.9% profit on FDIf you FD in RBL bank for a period of one year, then at the rate of 7.9 percent, your amount will increase from Rs 10 thousand to Rs 10,814.At the same time, if you invest in Lakshmi Vilas Bank's FD, then this amount will increase to Rs 10,798 after the interest received at 7.75 per cent. Let us tell you that apart from this, other banks of the country are now paying interest at the rate of 7 percent.
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Getting three times more return- Kotak World Gold Fund has given 32 per cent returns in a month. After this, DSP World Gold Fund has given 38 per cent returns in a year. The one-year average CAGR return for gold funds is 26 per cent.
Still have a chance Gold prices are increasing rapidly. This is the trend in the international market as well. Gold was at $ 1,300 an ounce in June. It rose to $ 1,500 an ounce in August. In the domestic market, gold was at Rs 33,000 in June. At the same time in August it reached its highest level of Rs 38,000. In August, gold has risen nearly seven percent within 10 days. Further, experts are expecting the price of gold in India to reach 41 thousand rupees per ten grams.
Getting three times more returns
Experts say that one should not invest in gold just to get returns. It should be a risk diversifier (risk-diversifying scheme) in everyone's portfolio. Gold ETFs are very price efficient. Gold ETF brings the wholesale market price efficiency at retail level. In this, you do not have the problem of keeping gold in a physical way. The biggest advantage is that you can sell it at market price whenever you want.
Gold ETFs are hardly aware of these benefits- Ajay Kedia, head of Kedia Commodity told News18 Hindi that Gold ETF is a modern, low-cost and safe means of investing in gold. Units purchased by you are deposited in your demat account.
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Whenever you want to redeem them, you can take cash equal to the price of your gold ETF. In some gold ETF schemes, you also get an option to take gold of equal value at the time of maturity.
How to spend money-You have to open your trading and demat account with any share broker. You can also buy them at regular intervals through Lump-Sum or Systematic Investment Plan (SIP). You can also buy one gram of gold. In this way, instead of giving more time to the market, invest in a systemic way.
Open your trading and demat account with a share broker. Login to the broker's online portal with your login ID and password. Select the gold ETF you want to buy. Place your purchase order for as many UTF units as you want to buy. Money will be deducted from your account. Units will be credited to your demat account on the day of trading or the next day.