Gold is regarded as one of the most vital elements in Indian ceremonies. Although most people would like to invest in gold as a physical asset there is one better option to invest in this precious metal. Gold Exchange Traded Fund, popularly known as Gold ETF, is one of those instruments, which has become a popular investment for the investors both within India and across the world. This has been a success investment option since its launch in India in the year 2007.
Gold ETF’s are a type of open ended mutual funds which help investors to invest their money in gold that is 99.5% pure. Gold ETF’s are listed over the stock exchanges where the investors are given the units of a mutual fund. Many a times a unit may represent one gram of gold. It is one of those funds which are passively managed and reflect the actual fluctuation of the gold prices in the market more or less. This means that the returns investors get for their investments would nearly match to the ones if gold is purchased and sold offline. As an investor these funds can be bought and sold on stock exchanges during trading hours. [click to continue…]