SBI Gold ETF

by Manshu on October 1, 2009

in ETF

Update: Click here to read about the latest SBI Gold Fund launched on 19 August 2011.

SBI GETS is a Gold ETF by SBI and is open to investors in India. You can invest in this ETF through a stock exchange much like any other stock.

The SBI Gold ETF invests in physical gold, and at any time -  it will have 90% – 100% of its investments in gold and gold bullion. Up to 10% of its investments can be in debt and money market instruments.

The expense ratio of this scheme is 2.5% for Plan A and 1.5% for Plan B. Plan A is for retail investors and Plan B for institutional investors. So retail investors should really think about the expenses as 2.5% of average daily net assets.

Bank of Nova Scotia is the gold custodian for this scheme and all the physical gold will be held with either them or sub custodians appointed by them.

The price of SBI Gold ETF is dependent on two things:

  1. Price of gold: Since this is an ETF that invests in gold, the price and NAV will be dependent on the gold that this ETF owns, and the price movement of gold.
  2. Demand and supply: At the same time, this is an ETF, so it trades on a stock exchange and therefore the value of the ETF also depends on the how it is trading.

Because of these two factors it is possible that the market price is different from the NAV of the ETF. It can be higher or lower based on the demand in the market.

SBI publishes its latest NAVs on its website and you can find that here. You can take a look at the latest NAV of SBI GETS, and then compare it with the price it is trading at on the stock exchange to find out the difference between NAV and actual market price at any given time.

SBI Gold ETF is one of six Indian gold etfs available to Indian investors right now.

This is a brief summary of this plan and is not a buy or sell recommendation. It doesn’t cover several risk factors related to the price of gold or ETFs..

Click here to read about the latest SBI Gold Fund launched on 19 August 2011.

{ 38 comments… read them below or add one }

Vikas Meshram December 20, 2009 at 9:37 pm

sir,
i want to invest in SBI Gold ETF.i want to know what are the procedure to invest in gold

Reply

Sapna Sharma January 4, 2010 at 3:54 am

Sir,
i want to invest in SBI Gold ETF.i want to know what are the procedure to invest in gold
thanks &regards
Sapna

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Manshu January 4, 2010 at 11:10 am

You can invest in it like any other stock or share. You can use your current broker to buy it.

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MOHINI RAUTELA May 13, 2011 at 10:39 am

what will be better for investment e-gold or gold etf ?

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ritesh goel January 2, 2010 at 12:30 am

plz send the details how we can invest in sbi gold ETF
we are placed at bahraich (U.P.)

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Manshu January 2, 2010 at 8:35 am

Ritesh you can can buy an ETF just like you buy any stock or share. Do you have a broker? You can buy ETFs from your broker.

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Attma Nand January 22, 2010 at 11:47 pm

Sir,
i want to invest in SBI Gold ETF. I want to know what is the procedure to invest in gold

Attma Nand

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srinivas February 7, 2010 at 9:06 pm

Good Morning,
I want to invest in gold ETF, I have read the details, but have some doubts ,
1. If I buy a Gold ETF now, can I sell it in the same bank at anytime I like?
2. what are the additional charges an ETF is subjected to?
3. Any Risk factors?
4. when exactly should I buy , a small advice from you side?
5.

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Paul Rongong March 13, 2011 at 7:45 am

I would like to go for sbi gold etf.

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BHARATI February 22, 2010 at 11:39 pm

Sir,
i want to invest in SBI Gold ETF.i want to know what are the procedure to invest in gold
thanks &regards
Bharati.

Reply

Manshu February 23, 2010 at 5:14 am

It is just like a stock or share Bharti. You can buy an ETF in the same way you buy a stock. Contact your broker and he will help you. Here is a post I did on the subject too.

http://www.onemint.com/2009/10/20/how-to-buy-etfs/

If you have any questions, leave a comment, and I will try and answer them.

Reply

sankar dey May 14, 2010 at 10:36 am

i am interested in gold etf. so please contact me in -9433098065

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alpa June 9, 2010 at 2:12 am

interested in SBI GOLD ETF. Please let me know the procedure for this. Can local SBI branch provide help for investment?

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sunu June 23, 2010 at 9:48 pm

pls advise good time to invest in gold etf.Also can i get a market study chart of last 3 years of gold etf.

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Suman J November 9, 2010 at 1:13 am

Manshu,

What exactly does expense ratio means? How it will impact investments in ETF? Planning to invest in SBIGETF now. Whatz your opinion, do you think is it the right time to invest? Please advise. Thanks in advance.

Reply

Manshu November 9, 2010 at 4:19 am

Suman,

Every mutual fund incurs some expenses to run its operations. These expenses are expressed as a percentage to its assets, so if you run a fund with assets of Rs. 100, and your Expense Ratio is 1% then that means you spend one rupee in expenses and this is deducted from NAV. So, expenses reduce the NAV of ETFs, and the lower the expense ratio the better it is.

As for investing GETS…..I guess I should point you towards my post on comparison of gold ETFs, and my take currently on gold (though this is just the opinion of some blogger on the internet 🙂

http://www.onemint.com/2010/04/19/which-is-the-best-gold-etf-in-india/
http://www.onemint.com/2010/10/07/my-opinion-on-gold-and-silver/

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Paul Rongong March 13, 2011 at 8:05 am

Tell me about sbi gold etf plus points and negative points.

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Manshu March 14, 2011 at 3:34 pm

Did you read the post? What did you make out of it? Here is another post on best gold ETF that might help you.
http://www.onemint.com/2010/04/19/which-is-the-best-gold-etf-in-india/

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nagarajan m April 26, 2011 at 12:18 am

i would like to invest in gold so give me suggestion where better to buy gold coin or share certificate ? i am new

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saroj kumar April 30, 2011 at 9:13 am

dear sir ,
i want to invest in sbi gold etf . but i do not know much about it .what is the procedure .
what a minimum amount in sip plan yearly? please tell me in detail

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Manshu April 30, 2011 at 2:39 pm

Saroj – An ETF can be bought exactly like a share, so if you have ever bought a share then you can buy the ETF in the same manner. If not, then there are mutual funds that invest in ETFs and you can do SIP in them. Have you every bought a share in the share market, are you familiar with how that is done?

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Sanjeev kUMAR August 20, 2011 at 4:42 pm

I want to know ,IF I WILL BOOK Rs 10 lacs in PHYSICAL GOLD IN CURRENT RATE THROUGH SBI GETS ,WILL IT POSSIBLE I WILL PAY THE WHOLE AMOUUNT OF RS 10 LACS IN 180 MONYHLY INSTALEMENT and what will be the rate of interest.

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Manshu August 21, 2011 at 10:16 pm

If understand this comment correctly – you want to know two things.

1. Can you lock into a price right now, and continue buying gold at that price even when the price of gold goes up?

No, you can’t do that.

2. Can you get physical gold after buying GETS?

No, you can’t do that either. Let me know if my understanding is correct, or you want to know something else.

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mohini August 23, 2011 at 9:08 pm

Hi Manshu..

I want to invest in gold but at this current scenario at Rs.280000/ per 10gms.. its not seem good or profitable.. suggest me what do I do at this stage?

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Manshu August 24, 2011 at 5:10 am

Hi Mohini,

I’ve been wary of gold for the past two years and had you listened to me you would have missed the appreciation in the last two years. But, my view has still not changed about gold, and I’m personally staying away from it. In my opinion, if you are interested then you can go invest in it in small quantities not exceeding 5% or so of your portfolio.

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SANJAY LAHA April 2, 2012 at 3:25 pm

i am interested in sbi gets. i want to invest in regular interval ( monthly). what is the minimum amount / qty that i can purchase each time. actually i may require physical gold after 20-22 years from now. please advice me whether this kind of investment is suitable for me.

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Manshu April 2, 2012 at 7:20 pm

The least you can get is one unit which is about Rs. 2800 right now. ETFs won’t allow you to convert these units to gold but that will probably not make too much difference to you since you can sell the units at the prevailing gold price at the time and then buy gold.

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BROJA GOPAL MANDAL August 3, 2012 at 7:46 am

HI MANSHU,
PLEASE SEND ME BROCHEOURE FOR INVESTING IN SGI GOLD ETF AS EARLY AS POSSIBLE. I WANT TO INVEST SMALL QUANTITY OF UNIT THROUGH MUTUAL FUND.
THANK U YAAR.
BROJA GOPAL

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Harsha September 13, 2012 at 1:25 am

Hi Manshu,
I have following queries,
1. Is the GoldBees is an foreing company – USA?
2. To invest for long term say 10 years or more than 10 years which one would be the best ETF SBI or GoldBees?

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Manshu September 13, 2012 at 3:33 am

1. It is owned by a US company – Goldman Sachs.
2. There should be little difference.

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Harsha September 13, 2012 at 8:44 pm

Thanks.
Please explain that little difference as well?

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Manshu September 14, 2012 at 5:32 am

If you read this post from some time ago Harsha, then this should help clarify some of the questions you have.

http://www.onemint.com/2011/08/16/gold-etf-in-india-performance-and-volumes-in-last-year/

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santosh kumar September 23, 2012 at 12:25 pm

plz send the details how we can invest in sbi gold ETF
we are placed at baddi himachal pradesh

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Mohini September 24, 2012 at 9:39 pm

Hi, Manshu, how are you?
Now in this present scenario how do you see the future of gold.

Reply

Jyotsna Chaturvedi November 1, 2012 at 2:43 pm

Hi Manshu

I have two questions:
1. do you still recommend buying gold etfs
2. what is the tracking error of sbi gets
regards
jyotsna

Reply

Jyotsna November 1, 2012 at 2:44 pm

Hi Manshu

I have two questions:
1. do you still recommend buying gold etfs
2. what is the tracking error of sbi gets
regards
jyotsna

Reply

antony November 12, 2012 at 2:46 pm

my folio no is 13263566 and pan no is ABGPC5001Q

LET ME KNOW HOW I CAN CHECK MY NAV

Reply

antony November 12, 2012 at 2:48 pm

WHAT IS MY NAV TODAY FOLIO NO 13263566 AND PAN NO AGPC5001Q.HOW CAN I CHEK MYSELF
PL ADVISE .

Reply

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