Learn: Gold ETF
A Gold ETF is an exchange-traded fund that aims to track the domestic price of physical gold. Units can be held in dematerialised form in a demat account and are bought and sold on the stock exchange. Gold prices can rise and fall, and Gold ETFs are subject to market risk.
This page is for education only. Money Grow is not registered with SEBI and does not recommend, sell or manage any Gold ETF.
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Gold Exchange Traded Funds (ETFs) can be an option if you find buying physical gold inconvenient, or if you want to diversify your portfolio. Gold prices can rise and fall, and gold ETFs are subject to market risk, so please understand the risks before investing.
Gold mutual funds invest in gold ETFs while gold ETFs invest in 99.5% purity gold. Gold ETFs have no exit loads while gold mutual funds charge an exit load when one redeems their holdings before one year. Gold mutual funds allow for SIP investments whereas the same is quite cumbersome in gold ETFs.
Can I convert my Gold ETF into physical gold? Yes, you can do that. But for that you need to have a minimum number units that are worth one kg of gold. This is because the standard size of one gold bar is one kilogram.
Gains from gold ETFs are taxed as per the income-tax rules in force at the time of sale, which depend on your holding period. Tax rules change from time to time, so please check the current rules or consult a tax adviser.
Tax treatment depends on how long you hold the units and on the law applicable when you sell. Please consult a qualified tax adviser for your situation.