Investing in gold has traditionally been considered a safe and profitable option, but buying physical gold can be expensive and risky. Gold ETFs (Exchange Traded Funds) have made it possible for small investors to own gold digitally, starting with as little as ₹1,000.
Recently, Choice international Limited, a financial services company, has launched a new gold ETF under Choice Mutual Fund, providing a simple and convenient way for indian investors to invest in gold.
🔹 What is a gold ETF?
A Gold ETF is a type of mutual fund that tracks the price of gold.
· You buy units of the ETF, and each unit represents a small quantity of physical gold held by the fund.
· gold ETFs are traded on stock exchanges like shares, making them highly liquid and transparent.
· Returns are linked directly to the market price of gold, minus fund management charges.
Advantages of gold ETFs:
· No need for physical storage
· Lower risk of theft
· Can be bought/sold anytime on stock exchanges
· Small investment amount (starting at ₹1,000)
🔹 Who Can Invest?
· Any Indian resident above 18 years of age.
· Individuals with a demat account and a bank account can invest.
· Both long-term investors and traders can participate.
Gold ETFs are suitable for investors looking to:
· Hedge against inflation
· Diversify their portfolio
· Invest in gold without physical handling
🔹 Step-by-Step Process to Invest in Choice gold ETF
Step 1: Open a Demat and Trading Account
· If you don’t have a demat account, open one with a registered broker or bank.
· Demat account is necessary because Gold ETF units are held in electronic form.
Step 2: Complete KYC
· Provide PAN card, Aadhaar, and bank account details.
· KYC is mandatory to comply with SEBI regulations.
Step 3: Link Your bank Account
· Your demat/trading account must be linked to a bank account for transactions.
Step 4: Buy gold ETF Units
· Log in to your trading account.
· search for Choice gold ETF on the stock exchange (NSE/BSE).
· Decide the amount to invest (minimum ₹1,000).
· Place a buy order like purchasing a stock.
Step 5: Monitor Your Investment
· Track your gold ETF units on your demat/trading account.
· Prices move with the international gold market and can be sold anytime.
🔹 Benefits of Investing in gold ETFs
1. Low Initial Investment: Start with just ₹1,000.
2. Safe and Secure: Backed by physical gold held by the fund.
3. Liquidity: Can buy or sell anytime on stock exchanges.
4. No Storage Worries: No risk of theft or storage cost like physical gold.
5. Diversification: adds gold exposure to your investment portfolio.
🔹 Things to Keep in Mind
· Expense Ratio: Small annual charge by the fund for management.
· Market Fluctuations: gold prices can go up or down; invest with a long-term perspective.
· Trading Hours: ETFs can only be traded during stock market hours.
🔹 Conclusion
The launch of Choice gold ETF makes investing in gold easier, safer, and accessible to small investors. With just ₹1,000, anyone can start building a digital gold portfolio and benefit from gold’s price appreciation over time.
Gold ETFs are an excellent way to diversify your investments, hedge against inflation, and invest in India’s most trusted precious metal without the hassles of physical gold.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
Investing in gold has traditionally been considered a safe and profitable option, but buying physical gold can be expensive and risky. Gold ETFs (Exchange Traded Funds) have made it possible for small investors to own gold digitally, starting with as little as ₹1,000.
Recently, Choice international Limited, a financial services company, has launched a new gold ETF under Choice Mutual Fund, providing a simple and convenient way for indian investors to invest in gold.
🔹 What is a gold ETF?
A Gold ETF is a type of mutual fund that tracks the price of gold.
· You buy units of the ETF, and each unit represents a small quantity of physical gold held by the fund.
· gold ETFs are traded on stock exchanges like shares, making them highly liquid and transparent.
· Returns are linked directly to the market price of gold, minus fund management charges.
Advantages of gold ETFs:
· No need for physical storage
· Lower risk of theft
· Can be bought/sold anytime on stock exchanges
· Small investment amount (starting at ₹1,000)
🔹 Who Can Invest?
· Any Indian resident above 18 years of age.
· Individuals with a demat account and a bank account can invest.
· Both long-term investors and traders can participate.
Gold ETFs are suitable for investors looking to:
· Hedge against inflation
· Diversify their portfolio
· Invest in gold without physical handling
🔹 Step-by-Step Process to Invest in Choice gold ETF
Step 1: Open a Demat and Trading Account
· If you don’t have a demat account, open one with a registered broker or bank.
· Demat account is necessary because Gold ETF units are held in electronic form.
Step 2: Complete KYC
· Provide PAN card, Aadhaar, and bank account details.
· KYC is mandatory to comply with SEBI regulations.
Step 3: Link Your bank Account
· Your demat/trading account must be linked to a bank account for transactions.
Step 4: Buy gold ETF Units
· Log in to your trading account.
· search for Choice gold ETF on the stock exchange (NSE/BSE).
· Decide the amount to invest (minimum ₹1,000).
· Place a buy order like purchasing a stock.
Step 5: Monitor Your Investment
· Track your gold ETF units on your demat/trading account.
· Prices move with the international gold market and can be sold anytime.
🔹 Benefits of Investing in gold ETFs
1. Low Initial Investment: Start with just ₹1,000.
2. Safe and Secure: Backed by physical gold held by the fund.
3. Liquidity: Can buy or sell anytime on stock exchanges.
4. No Storage Worries: No risk of theft or storage cost like physical gold.
5. Diversification: adds gold exposure to your investment portfolio.
🔹 Things to Keep in Mind
· Expense Ratio: Small annual charge by the fund for management.
· Market Fluctuations: gold prices can go up or down; invest with a long-term perspective.
· Trading Hours: ETFs can only be traded during stock market hours.
🔹 Conclusion
The launch of Choice gold ETF makes investing in gold easier, safer, and accessible to small investors. With just ₹1,000, anyone can start building a digital gold portfolio and benefit from gold’s price appreciation over time.
Gold ETFs are an excellent way to diversify your investments, hedge against inflation, and invest in India’s most trusted precious metal without the hassles of physical gold.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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