Investing in Gold ETFs is as good as investing in physical gold

In addition to cultural and traditional reasons, gold also plays an important role in one’s portfolio, as a diversifier and a hedge against inflation and volatility in other asset classes.

Chintan Hariya, Head of Product Development and Strategy, ICICI Prudential AMC said that investors who are looking to buy gold for investment purposes. Diwali You can consider Gold ETFs.

“Investing in Gold ETFs is as good as investing in physical gold. Since Gold ETFs are held in demat, the investor need not worry about the storage and security aspects. People without demat can invest in Gold Fund of Funds,” said Chintan

In terms of purity, Gold ETF buys gold of 99.5% purity or more. Furthermore, they can be bought or sold at any time during trading hours, just like equities on the exchanges. He said investors can transact at a price as low as one unit of gold.

Chintan Hariya said that from an allocation perspective, investors can consider allocating 5-10% in gold in their portfolio through Gold ETFs or Gold FoFs.

Meanwhile, Domestic Gold Exchange Traded Funds (ETFs) saw an influx 330.24 crore in September after two months of total outflow 495 crores. The yellow metal is down 7% in the past three months from $1802 per ounce (31.10 grams) to $1677.

with Dhanteras The jewelery industry is cautiously optimistic about demand, mainly due to an exceptionally high base last year, inflation concerns and overall rising cost of living.

Disclaimer: The views and recommendations above are those of individual analysts, not Mint’s.

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