InvestmentTrading

Invest in Gold ETFs

This Diwali, BUY Gold through ETFs with Fyers

For many years, Gold has been considered as safest mode of investment in India, and the returns on it have certainly proved so. Buying Gold during Diwali, especially on Dhanteras is considered to be very auspicious too.

We at FYERS are providing a platform, for Easy, Cost Effective and Safe way to buy Gold directly through Gold ETFs.

So what is Gold ETF? And how can we invest in Gold ETF through Fyers.

What are Gold ETFs?

Gold ETF is an exchange-traded fund (ETF) that enables to Buy & Sell Gold in Demat form (not physical) at prevailing market price of Gold. In short, Gold ETFs are units representing physical gold, which may be in paper or dematerialized form. One unit of Gold ETF is equal to 1 gram of gold and is backed by physical gold of highest purity.

Buying Gold ETF simply means purchasing gold in an electronic form. Similar to stocks, Gold ETFs can be bought and sold on both BSE & NSE.

How Does Gold ETFs Work?

Gold ETFs are backed by 99.5% pure physical gold bars. Gold ETF prices are listed on the website of BSE/NSE and can be bought or sold anytime through Demat account. A brokerage fee and nominal fund management charges are applicable (by ETF’s) while buying or selling gold ETFs.

Advantages of Buying Gold ETFs over Physical Gold.

  1. Safe Investment Option: Gold ETFs are ideal for investors who wish to invest in gold but not in physical form, due to the storage hassles and purity issues. The purity of gold is guaranteed, and each unit of ETF is backed by physical gold of 99.5% purity.
  2. Easy Trading: A person can buy and sell gold ETFs on any trading day at prevailing market prices. Moreover, purchase can be done in small quantity of 1 gram (and multiples) as represented by every unit of ETF.
  3.  Tax Benefit:  Income earned on Gold ETFs held for over 1 year, qualifies as long term capital gain. Further, there are no additional /hidden charges or levies such as security transaction tax, VAT, and sales tax.
  4. Economical: No entry and exit load. There is no premium or making charges, like in case of physical gold.
  5. Loan collateral: ETFs are accepted as collateral for loans.

Buying Gold ETFs through FYERS

  1. Log-in into your Fyers Demat account.
  2. On the watchlist panel, type ‘Gold ETF’, which provides several options of ETFs by different Fund houses, to choose from. For buying your preferred/ selected Gold ETFs press Shift B, which opens the order entry window. Fill your desired quantity details and click on the buy tab. Like in case of orders for stocks, the order executed will be flashed on the screen.

We hope this article has helped you in understanding Gold ETFs and how one can Trade Gold ETFs through Fyers. From Fyers Wishing You All A very Happy and Prosperous Diwali.

Happy Trading.

Suruchi Kapoor

Suruchi Kapoor

Suruchi Kapoor, has 15 years of rich experience in financial markets with hands-on expertise in Technical Analysis and Trading. Prior to joining FYERS, Suruchi worked with several brokerage houses in various roles with focus on Technical Analysis and Trading.   

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