InvestorQ : What is Gold Mutual fund???
simran Kaur made post

What is Gold Mutual fund???

Answer
user profile image
Anushri Vasa answered.
2 years ago


Gold Mutual fund or Gold ETF is an investment of the pooled amount of small investor in 99.5% pure Gold Bullion. These funds are open-ended and are traded in a similar manner of any stock. This easy mechanism of Gold ETF helps investor or Mutual fund house to buy and sell any number of units, anytime. The buy Golf ETF is the same as buying physical gold of the same value. The purity of Gold in physical market varies, while the purity of Gold ETF is stated to be pure as it buys 99.5% pure gold Bullion. Also, buying physical gold attracts making charges, that range from 10% to 20% extra cost, which is not in the case of Gold ETF. However, it should be noted that if you buy Gold ETF you will not get physical delivery of Gold but hold the same value of gold units. One can accumulate these gold units and sell whenever is in need of making physical Gold at the prevailing gold price. Gold ETF derives if the value from the value of Gold and so it tracks the same movement of Gold. If you are planning to buy gold for yourself or your children for future or just want to hedge your investment portfolio then Gold ETF or gold Mutual funds is the best choice, as you can keeping buying the Gold ETF as an when required and sell at the time when you need a physical Gold.

Here are some of the NSE listed Gold ETFs

Source: NSE