Investment in Gold is widely considered as a safe bet in the long term. The history of Gold prices for the past 80 years is also proving that Gold as an investment will give good returns in the time of economic depression and slowdown. Gold Exchange Traded Funds (GETF) are the latest trend in investment strategies. These are known as GOLD ETFs. These ETFs primarily invest the money they have collected in the bullion market. Gold ETF first came into existence in India during the second quarter of 2007. Investors need DEMAT account and trading account to buy or sell these ETFs. The pattern is same as for stock trading. In India, there are about 10 Gold ETF companies listed on NSE and BSE and the number is raising year after year as investors are finding it more convenient that n other forms of investment in Gold such as buying physical gold and coins or bars. Following is the list of Gold ETFs in India and their symbols in NSE / BSE exchanges:
1. Benchmark Mutual Fund – Gold Benchmark Exchange Traded Scheme (Symbol – GOLDBEES)
2. Reliance Mutual Fund – Gold Exchange Traded Fund (Symbol- RELGOLD)
3. SBI Mutual Fund – SBI Gold Exchange Traded Scheme – Growth Option (Symbol- SBIGETS)
4. Axis Mutual Fund – Axis Gold ETF (Symbol – AXISGOLD)
5. ICICI Prudential Mutual Fund – ICICI Prudential Gold ETF (Symbol- IPGETF)
6. Kotak Mutual Fund – Gold Exchange Traded Fund (Symbol- KOTAKGOLD)
7. HDFC Mutual Fund-HDFC Gold Exchange Traded Fund (Symbol- HDFCMFGETF)
8. Quantum Gold Fund -Exchange Traded Fund (ETF) (Symbol- QGOLDHALF)
9. UTI Mutual Fund – UTI Gold Exchange Traded Fund (Symbol- GOLDSHARE)
10. Religare Mutual Fund – Religare Gold Exchange Traded Fund (Symbol- RELIGAREGO)
There are many advantages of investing in gold through ETFs. There will be no theft concerns as like in physical gold. You can buy and sell any quantity starting from minimum 1 unit. You can dematerialise the money on any trading day and purchase the physical gold. The unit prices of Gold ETFs differ based on the fund company you choose. The minimum and maximum difference would be between Rs. 100 – 300 per unit. The fund houses charge minimum transaction charges and it is very less comparing to making charges of Jewellery shops. Benchmark Mutual Fund is the biggest and leading company in ETFs with an approximate asset size of Rs. 1375.65 crore as on 31st October 2010.