InvestorQ : Can I use Gold Exchange Traded Funds (ETFs) and PO deposits to park money in short term?
prachi Patwardhan made post

Can I use Gold Exchange Traded Funds (ETFs) and PO deposits to park money in short term?

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Moii Chavate answered.
1 year ago
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Gold ETFs can be bought directly from the stock market and held in your demat account. Apart from being a more efficient way of holding gold, it broadly tends to protect and enhance value over a period of 1-3 years. There is the price risk in these instruments as the ETF is linked to the market price of gold. Also in tax terms, gold ETFs will be classified as LTCG only if they are held for more than 3 years. Else it will be classified as STCG. Post office time deposits can also be bought across the counter at any post office. They normally tend to offer a slightly higher return compared to bank FDs. Like a bank FD, you can also leverage your POTD and raise funds against the same in an emergency.

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