Funds collected by the mutual fund will be invested in gold and hence the net asset value of the ETF will be largely dependent upon price of gold minus the administrative costs of the AMC and the mutual fund.
'If gold's recent surge has increased its allocation beyond 15 per cent in your portfolio, now may be a good time to rebalance.'
An ETF is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities or bonds.
Investing in ETFs is similar to buying and selling shares on exchanges through your trading account, points out Ashwani Bhatia, MD and CEO, SBI Mutual Fund.
Sebi's probe against Jane Street is part of its efforts to mitigate losses for individual derivative traders.
If one compares returns, the two public-sector ETFs have done better over the past year, but the ELSS category has done better over the trailing three and five years.
Eight persons remained trapped inside the tunnel since February 22, after a part of it collapsed.
Experts attributed the inflows to sudden rally in gold prices, mainly due to uneasy trade negotiations between the US and China and lower than expected global GDP growth.
Indian retail investors continue to sell gold ETFs.
Commodity ETFs (exchange traded funds) attempt to track the price of a single commodity, such as gold or oil, or a basket of commodities by holding the actual commodity in storage, or by purchasing futures contracts.
One risk of investing in a very low-cost ETF is if a fund house runs it at below cost, it could close it if it fails to attract institutional money
Gold prices rose by Rs 70 to hit yet another record high of Rs 98,170 per 10 grams in the national capital on Thursday amid firm global demand, according to the All India Sarafa Association. On Wednesday, the precious metal of 99.9 per cent purity soared by Rs 1,650 to hit an all-time high of Rs 98,100 per 10 grams.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Cadaver dogs from Kerala police have joined the rescue operation at the partially collapsed SLBC tunnel in Telangana, where eight people have been trapped since February 22. The dogs, specially trained to locate missing humans and human bodies, are being used to identify the presence of survivors in the tunnel. Rescue personnel, including NDRF teams, are also working tirelessly to reach the trapped individuals amidst challenging conditions, including slush and seepage of water.
Mutual fund assets surged 23 per cent or over Rs 12 lakh crore year-on-year to reach a record of Rs 65.74 lakh crore in FY25, propelled by robust net inflows and mark-to-market gains amid buoyant equity and debt markets.
The inflows meant assets under management of gold ETFs climbed by over 4 per cent to Rs 13,503 crore at the end of August from Rs 12,941 crore at July-end.
Given that the ETF has given exceptional returns over the past year, start small and buy more in a staggered manner.
The exchange traded fund (ETF), the most exciting investment in the market, is capable of giving sweeping returns.
The conveyor belt at the partially collapsed SLBC tunnel in Telangana has been repaired and made operational, making it easier for rescue personnel to shift muck and debris. The belt was damaged following an accident on February 22. Rescue efforts continue on the 11th day of the accident, with a team from South Central Railway cutting the platform of the damaged Tunnel Boring Machine inside the tunnel. The government is exploring the option of deploying robots in the rescue operation to prevent any threat to the rescue personnel.
Gold prices inched closer to the psychological mark of Rs 1 lakh per 10 grams as the bullion rates surged Rs 1,650 in the national capital on Monday on weak dollar and uncertainties over US-China trade war driving demand. According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity reached Rs 99,800 per 10 grams on Monday. Its value had declined Rs 20 to close at Rs 98,150 on Friday.
Gold demand in India witnessed a 5 per cent on-year rise at 802.8 tonnes in 2024 supported by reduction in import duty, and purchases related to weddings and festivals, and going ahead consumption of the yellow metal in 2025 is likely to be between 700-800 tonnes, according to the the World Gold Council. The World Gold Council (WGC) in a report on Wednesday said gold demand in the country in 2024 stood at 802.8 tonnes, as against 761 tonnes in 2023.
EPFO had started investing ETFs in August last year.
Total market funds are ideal for long-term investors who prefer a simple, hands-off approach, making them suitable for those unwilling to manage multiple funds.
The fear of losing purchasing power due to inflation and low-interest rates has led many to explore safe alternatives to fixed deposits with high returns
Market downturns or regulatory shifts can reduce liquidity, making it harder to buy or sell assets when needed.
In their short history, Gold ETFs have been quite successful in capturing investors' fancy. It must be noted that while ETFs as investment avenues may not be very popular among investors, it is the Gold ETFs segment wherein the interest is palpable. The fact remains that Gold ETFs are like any other investment avenues and have their fair share of pros and cons. This in turn highlights the need for investors to properly evaluate the Gold ETF option.
The Rs 84,000 crore domestic fund of funds (FoFs) space, which was in the doldrums over the past 18 months, has now caught the attention of investors due to a change in the tax structure in Budget 2024. The broader category, which includes offerings across equity, debt and commodities, has seen a spike in the inflows over the past two months. FoFs typically deploy the pooled capital in one or multiple MF schemes rather than investing directly into equities, debt or commodities.
Though gold ETFs are traded on stock exchanges, they are taxed at a higher rate.
Are you debating between buying physical gold and investing in paper gold schemes or ETFs? Anil Rego has the answer
Do a proper asset allocation and invest through systematic investment plans where one can benefit.
"We are now looking at a new fund under the gold category, which will enable small investors to subscribe to the units from the offices of UTI, without even having a demat account," said sources at UTI Mutual Fund. "With the equity markets rising by almost 30 per cent between mid-March and April, investors are no longer interested in gold ETFs. Also most Indians prefer holding physical gold, rather than gold ETFs," said a broker.
ITC's move to hive off its hotel business will have implications for passive funds and exchange traded funds (ETFs) similar to that seen during the Reliance Industries-Jio Financial demerger. As ITC is part of popular indices such as Nifty and Sensex, it is held by several index funds and ETFs.
Asset managers are betting big on ETFs these days.
Gold prices advanced Rs 700 to reach a new lifetime high of Rs 91,950 per 10 grams in the national capital on Wednesday on the back of continued buying by jewellers ahead of wedding season, according to the All India Sarafa Association. Besides, increased tensions in the Middle East and concerns about the US economic slowdown have kept the demand for safe-haven assets intact.
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The ETF is expected to fetch the govt Rs 3,000 crore.
Investors should view the increase in the LTCG tax rate in conjunction with the increase in capital gains exemption from Rs 1 lakh to Rs 1.25 lakh, which will provide some relief.
Most investors should have a 5% to 10% allocation to gold for diversification. They should stagger their investments to mitigate timing risk.
With more exchange traded funds coming into the market, are they a better alternative to mutual funds?
Unlike mutual funds, an ETF trades like a common stock.
The Reserve Bank of India (RBI) on Wednesday came out with comprehensive draft guidelines to harmonise and regulate gold loans across all financial entities, including putting a cap of 75 per cent on loan-to-value (LTV) ratio. The draft guidelines also aim to address concerns related to certain lending practices, provide clarity on specific aspects, and strengthen the conduct-related standards in the sector.
