Comment
Author: Admin | 2025-04-28
The stock exchange, it is easy for an investor to purchase and sell the investment. Consequently, an investor enjoys the benefits of liquidity and is also able to conduct transactions with ease.Lower Costs: Gold ETFs offer lower costs to investors due to no entry or exit loads or other associated costs.Tax Benefits: Although gold ETFs are subject to long-term capital gains tax, they are exempt from other taxes such as value-added tax (VAT) or Securities Transaction Tax (STT). By investing in a gold ETF, an investor can benefit from a lower tax burden.Gold Funds vs. Gold ETFs: Key DifferencesThe table highlights some of the significant differences between gold funds and gold ETFs:Gold Funds vs. Gold ETFsPointGold Mutual FundsGold ETFsMeaningGold mutual funds invest in gold or gold-related assets, such as gold ETFs, gold producers, and mining companies.Gold ETFs are instruments that track the performance of gold. These ETFs invest in gold by purchasing bullion or futures contracts.Demat AccountGold mutual funds do not require a demat account.To invest in Gold ETFs, an investor requires a demat account.SIPAn investor can invest in gold mutual funds through a systematic investment plan (SIP). It is not possible to invest in Gold ETFs through SIP. ETF units need to be bought with a lump sum payment.CostsGold mutual funds have higher costs, such as entry and exit loads.Gold ETFs have no entry and exit loads. However, demat and brokerage charges are applicable.TaxabilityLong-term capital gains, along with taxes applicable to jewellery, are levied on gold mutual funds.Although gold ETFs are subject to long-term capital gains tax, they are exempt from VAT and Securities Transaction Tax.You may also be interested to know1.ULIP vs ELSS – A Comparative Analysis2.Demat Account vs Statement of Accounts3.Multi Cap Funds Vs Flexi Cap Funds4.Index Funds Vs ETFs5.Nifty Total Market Index vs Nifty 50: A Comparative AnalysisConclusionInvestment in gold is a good way for investors to diversify their portfolios. Gold investments act as a hedge against inflation and can be a great asset to rely on during unforeseen circumstances. When it comes to gold funds vs. gold ETFs, both instruments offer various benefits and features to investors.Gold mutual funds and Gold ETFs allow investors to easily invest in gold without needing to purchase physical gold. Both instruments are a great way to invest in an alternative asset in a hassle-free and safe manner. Investors should consider their investment goals and risk appetite before making an
Add Comment