Comments on: How to buy ETFs?

By: Tax Savings

Tax Savings — Thu, 27 Oct 2011 11:48:20 +0000

Investing in gold is pointless if not in ETFs. If you buy physical gold, you lose money in making charges and storing gold in lockers etc. ETF is convenient to transact and is certianly a more sophisticated way of investing in gold.

By: bemoneyaware

bemoneyaware — Thu, 27 Oct 2011 02:17:14 +0000

How to buy ETF:

As Manshu said it is like buying a share. Demo of icicidirect.com shows how to buy a share. For ETF steps are as follows

1. You need a Demat account along with broker who is a member of NSE to buy a Gold ETF.
Some of the brokerage firms are ICICI Direct, HDFC Securities, KOTAK Securities and India Infoline, Geojit, IndiaBulls, Sharekhan.

2. Once you have a brokerage account you can buy Gold ETF by placing an order like a normal stock order to buy listed Gold ETF. Just like shares they have Symbols:
Benchmark Mutual Fund – Gold Benchmark Exchange Traded Scheme (NSE Symbol: GOLDBEES)

Kotak Mutual Fund – Gold Exchange Traded Fund (NSE Symbol: KOTAKGOLD)(See price chart)

UTI Mutual Fund – UTI Gold Exchange Traded Fund (NSE Symbol: GOLDSHARE)

Reliance Mutual Fund – Gold Exchange Traded Fund (NSE Symbol: RELGOLD)(See price chart)

Quantum Gold Fund – Exchange Traded Fund (ETF) (NSE Symbol: QGOLDHALF)

Hope it helps.
P.S:Icicidirect.com is just mentioned for demo and is not suggested that u open an account there.

By: Arijit Upadhyay

Arijit Upadhyay — Wed, 26 Oct 2011 18:34:37 +0000

True, but if the gold prices are seen over a period, for even say 40 year period, this is one commodity whose price has mostly been upward.
Ref: http://goldprice.org/gold-price-india.html

Following is a table of 22 carat gold prices per gram over 37 years, which will give an accurate idea of gold price fluctuations.

Date Goldrate Years Compound Rate of increase per year
1-Jan-74 19 37.84 13.96%
1-Jan-92 332 19.83 11.09%
6-May-98 425 13.48 14.60%
11-Nov-03 572 7.96 21.35%
5-Oct-07 948 4.06 29.05%
17-Jan-09 1319 2.77 28.96%
11-Aug-10 1910 1.21 31.95%
25-Oct-11 2670 0.00 0.00%

Now if an investor wants to unlock the potential of family gold while not completely parting away with it, I thought buying Gold ETF from Gold Loan money could be a way, since ETF’s are investing around 95% money in physical gold only.

As you correectly said, risks are definitely there and so caution and proper knowledge of Gold ETF’s should be there before taking the risk.

By: Manshu

Manshu — Wed, 26 Oct 2011 13:24:08 +0000

Just because gold has gone up in the last 3 years doesn’t mean it will go up at the same rate in the next year as well. Leveraging up to bet on some stuff that *may* go up is not wise.

By: Arijit Upadhyay

Arijit Upadhyay — Wed, 26 Oct 2011 06:50:12 +0000

I think one option could be to take Gold Loans from Muthoot, Manappuram, or even HDFC Bank now! They charge approx 1% per month for the amount taken, So it is around 12% a year if you pay the interest monthly or about 14% if you pay intrerest cumulative. On the other hand Gold returns are approx around 35-40% for over last 3 years. So you gain about 20-25% every year at current trends for last 3 years.

By: Manshu

Manshu — Wed, 28 Sep 2011 10:45:07 +0000

The same way you buy any other shares – you can buy them through any trading account.

By: sunil prasad

sunil prasad — Wed, 28 Sep 2011 08:18:13 +0000

how can buy etf gold fund

By: Manshu

Manshu — Thu, 03 Feb 2011 02:22:11 +0000

You can’t give a gift of a physical gold ETF.

I’m not sure how one goes about gifting a gold ETF but that will be similar to transfer of share, you will have to figure out the details and tax implication though because I’m not familiar with those.

By: Mala

Mala — Wed, 02 Feb 2011 02:56:27 +0000

Hi,
Is there a way to gift someone Gold ETFs in place of physical gold ?

By: Manshu

Manshu — Thu, 27 Jan 2011 15:37:37 +0000

Kiran,

The buyer will be another individual like you. It is exactly like shares, so there will be someone else at the other end of the trade.

The amount you get will not depend on the current gold price, but on the future gold price – I mean the gold price on the date when you decide to sell.