Gold ETF is a type of Exchange Traded Funds that are passively managed. These ETFs track domestic gold prices.

2. Do Gold ETFs have a lock-in period?

No. Gold ETFs don’t have a lock-in period.

3. Is a Gold ETF better than physical gold?

It depends on the purpose of buying. In case you want to buy gold for ornamental uses on an immediate basis, physical gold is the answer. However, if you want to hedge your portfolio or diversify it, Gold ETFs are a good option as you can reduce costs by saving storage charges.

4. How can I invest in Gold ETFs?

To invest in Gold ETFs, you must have a Demat account with a stockbroker. After that, you can buy units of Gold ETFs like you buy stocks.

5. How to check Gold ETF price?

One of the quickest ways to find the Gold ETF price is on Tickertape. Simply search for your desired Gold ETF on Tickertape. Once the ETF Page opens, you can see the Gold ETF price on the price chart.

Best Gold ETFs in India

Gold Exchange-Traded Funds (ETFs) are financial instruments that keep you ahead regarding the performance of gold and trade on stock exchanges like NSE, similar to shares. Here are the best Gold ETFs in India.

Best Gold ETFs (2024)

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Overview of the Best Gold ETFs in India

Nippon India ETF Gold BeES

Launched in 2007, the Nippon India ETF Gold BeES tracks the price of physical gold, offering a transparent and efficient method for investors to invest in gold. It is one of the more popular gold ETFs in the Indian market.

SBI Gold ETF

Launched in 2009, SBI Gold ETF aims to reflect the price of gold in India, offering an efficient and cost-effective method for investors to gain exposure to the gold market.

Kotak Gold ETF

Kotak Gold ETF, established in 2007, provides an investment avenue for those looking to invest in gold through an ETF. The fund’s objective is to closely match the returns of gold in the domestic market.

HDFC Gold Exchange Traded Fund

HDFC Gold ETF, established in 2010, provides investors with an option to invest in gold without the need to physically store it. The fund’s objective is to track the price of gold in India.

UTI Gold Exchange Traded Fund

The UTI Gold ETF, launched in 2007, offers investors an opportunity to invest in gold by replicating its domestic price. The fund is designed to provide returns that closely correspond to the price of physical gold.

Advantages of Investing in Gold ETFs

Available at Low Cost

Since ETFs are available in the form of units, you can buy your desired quantity at low costs.

Highly Liquid

Gold ETFs are liquid, just like stocks. You can buy and sell them as and when you need them.

No Locker Required

You can access these as you require without having to depend on your locker provider.

Less Volatile

Gold ETFs act as a hedge against market volatility, giving your portfolio some stability.

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Factors to Consider Before Investing in Gold ETF

Expense Ratio

The expense ratio directly affects your returns, so opting for a low cost gold ETF can help maximise your gains over time. Even a small difference in expense ratios can have a significant impact, especially over the long term.

Liquidity

High liquidity ensures that you can easily buy or sell your Gold ETF units without affecting the market price. It’s important to choose a top gold bees in India that is actively traded on the exchange to avoid issues with liquidity.

Tracking Error

A low gold ETF tracking error indicates that the ETF closely follows the price movements of gold, ensuring that your returns mirror the actual gold price. The gold ETF with lowest tracking error in India is ideal for investors looking for accurate tracking of gold prices. Be cautious of ETFs with high tracking errors, as they may lead to lower-than-expected returns.

Investment Horizon

The best gold ETF in India 2024 is typically suited for medium to long-term investment horizons, allowing you to benefit from potential appreciation in gold prices over time. If you have a short-term focus, consider the market conditions carefully before investing.

Tax Implications

Be aware of the tax treatment of gold ETF India, as short-term gains are taxed according to your income slab, while long-term gains are taxed at 20% with indexation benefits. Understanding these implications can help you plan your investment strategy more effectively.

No Physical Storage

Since Gold ETFs are held digitally, you avoid the risks and costs associated with storing physical gold. This makes Gold ETFs a convenient option for those who prefer not to deal with the hassles of securing and insuring physical assets. When doing a gold ETF comparison India, this factor can be a deciding point for many investors.

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Frequently Asked Questions on Gold ETFs

1. What is Gold ETF?
Gold ETF is a type of Exchange Traded Funds that are passively managed. These ETFs track domestic gold prices.
2. Do Gold ETFs have a lock-in period?
No. Gold ETFs don’t have a lock-in period.
3. Is a Gold ETF better than physical gold?
It depends on the purpose of buying. In case you want to buy gold for ornamental uses on an immediate basis, physical gold is the answer. However, if you want to hedge your portfolio or diversify it, Gold ETFs are a good option as you can reduce costs by saving storage charges.
4. How can I invest in Gold ETFs?
To invest in Gold ETFs, you must have a Demat account with a stockbroker. After that, you can buy units of Gold ETFs like you buy stocks.
5. How to check Gold ETF price?
One of the quickest ways to find the Gold ETF price is on Tickertape. Simply search for your desired Gold ETF on Tickertape. Once the ETF Page opens, you can see the Gold ETF price on the price chart.