What is Gold ETF?
5paisa Research Team
Last Updated: 27 Jan, 2025 04:06 PM IST
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Content
- Gold ETF Meaning
- How Do Gold ETFs Work?
- Why Should You Invest in a Gold ETF?
- How to Invest in a Gold ETF?
- How is Gold ETF Different from Physical Gold?
- Benefits of Investing in a Gold ETF
- What are the Risks Involved with Gold ETFs?
- What are The Top Gold ETFs in India?
- Conclusion: Should You Invest in Gold ETFs?
If you’ve ever found yourself wondering how to invest in gold without dealing with the hassle of buying physical gold, then a Gold Exchange-Traded Fund (ETF) might be the answer you’ve been looking for. Gold has been a symbol of wealth and security for centuries, but in today’s fast-paced world, owning physical gold might not always be the most convenient option. That’s where Gold ETFs come into play. So, let’s break it down and see how they work, why you should consider them, and how to get started.
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Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.
Frequently Asked Questions
The minimum investment in a Gold ETF is typically the price of one unit, which can range from ₹1,000 to ₹3,000 depending on the ETF’s value and the gold price.
Gold ETFs are subject to capital gains tax. Short-term capital gains (STCG) tax applies if you sell within 3 years, and long-term capital gains (LTCG) tax applies if you hold for more than 3 years. The tax rate on LTCG is 20% with indexation.
Yes, you can invest in Gold ETFs through a Systematic Investment Plan (SIP). Many brokers and mutual fund houses offer this facility, making it easier for you to invest regularly.
Gold ETFs are generally safe, but they carry the risk of price fluctuations based on market conditions. As with any investment, it’s important to do your research and diversify your portfolio.
No, Gold ETFs cannot be redeemed for physical gold. You can only sell them in the market or exchange them for cash.