not into both. am not yet fully comfortable with options or futures.Quote:
Originally Posted by great
ippodhaikku I have invested only in MF and planning to invest in Gold ETF.
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not into both. am not yet fully comfortable with options or futures.Quote:
Originally Posted by great
ippodhaikku I have invested only in MF and planning to invest in Gold ETF.
Yeah, its been few months I actively traded. Infact, Market made me long time Investor during PY and year before that. I am just going through F&O market thought of speculating a meagre portion to start of with.My major(atleast 50%) investment are in stable stocks only. 2010 seems pretty good for short term investmentQuote:
Originally Posted by rajraj
Looks like your risk appetite is higher. Majorly on equities?Quote:
Originally Posted by rajraj
GP, are you following MF? Though I invest, i hardly track the performance :oops:
I'll be interested on this topic. Do you have any Gold ETFs in mind? Please share if you have more information on Gold ETF.Quote:
Originally Posted by GP
Vithagan, u r from US?
In India, we have few Gold ETFs like Benchmark, UTI, Quantum, Reliance, SBI, Kotak, Religare...
HDFC and ICICI have also just entered this market.
Performance-wise all of them perform similarly in line with Gold price.
Am planning to invest in Benchmark's Gold BeES, the first company to introduce Gold ETF in India.
A gold Exchange Traded Fund (ETF) is a financial instrument like a mutual fund whose value depends on the price of gold. In most cases, the price of one unit of a gold ETF approximately reflects the price of 1 gram of gold. As the price of gold rises, the price of the ETF is also expected to rise by the same amount. Similarly, a fall in the price of gold will also be reflected by a drop in the price of the ETF. However, unlike a mutual fund, the units of a gold ETF have to be purchased or sold on the stock market. To do so, one needs to have a demat account and a brokerage account with an online brokerage like ICICIdirect, or you may purchase it through your local stock broker.
Most gold ETFs are traded on the National Stock Exchange (NSE), so you will need a broker who is a member of the NSE. There are five gold ETFs in the market today, namely Gold BeEs, Kotak Gold, Quantum Gold, Reliance Gold, and UTI Gold ETF. According to data published by Valueresearchonline, the returns from all the gold ETFs over the last one year have been practically identical.
http://new.valueresearchonline.com/s....asp?str=13118
Gold ETF Positives
What are the advantages of investing in Gold ETFs? Do they declare dividends? When there is a high rise or a huge fall in prices, how is the investor affected?
- Shaileja Mammen
Gold ETFs offer manifold benefits over buying gold in physical form. Gold ETFs are a lot convenient because there is no physical delivery of gold involved and hence, investors are saved of the burden of storage and security.
Another advantage of gold ETFs, like any other ETF, is that the units of such funds are traded on the stock exchange and can be bought and sold like stocks on a real-time basis during trading hours. Gold ETFs also have the assurance of the purity of the underlying gold which one can never be sure of while purchasing physical gold from a jeweller. When investing in gold ETFs, one needs to have a demat account. One is not required to pay entry or exit loads, though brokerage is applicable.
When physical gold is sold, the jeweller will deduct the making charges and banks do not buy back gold while units of gold ETFs can be easily sold on the stock exchange at the prevailing market price.
Gold ETFs make it easy for retail investors to invest in gold as they allow investment in small denominations. Further, investing in paper gold gives tax advantages over investing in physical gold. Gold ETF units held for more than one year qualify for long-term capital gains whereas the holding period in physical form has to be three years to qualify for long-term capital gains. Also, gold held in paper form is not liable for wealth tax.
Regarding declaring of dividends, currently there is just one gold ETF-Reliance Gold ETF that has a dividend plan and it has not yet declared any dividend since its launch in November 2007.
Coming to your last question, by a huge rise or fall in prices of gold ETFs, it is apparent that you want to know the effect of a drastic price change of an ETF that stems from a big change in the demand or supply of units on the exchange. A huge rise or fall in the prices of gold ETFs is not possible as all ETFs are structured in a way that large differences between their price and the value of the underlying asset does not exist for a long period of time. If there is a huge increase in the demand or supply, then creation unit holders counter the impact of demand and supply of ETF units by buying and selling the units in the market and also by creating or destroying units, if need be. Thus, the price of the ETF units remains in line with the value of the underlying asset.
Gold ETF is quoting at 1800+ . :(
But the past performance has been 16% pa. Instead you can go for some volatile stock and the returns would be higher with a lesser lock in period
great: Do companies in India offer retirement savings plans with matching contribution?
Yeah, though we will get lesser returns in Gold ETF than in stocks, I would prefer to invest in it to neutralise the risk.
my proportion is 80% in MF, 20% in Gold ETF.
even when I invest in shares, I would maintain 20% in Gold ETFs.
You wont have a crash in Gold markets at anytime.
I would check and let you know tomorrow.Quote:
Originally Posted by rajraj