Gold ETF : Gold has been an attractive medium of investment since ancient times. However, there is definitely a concern about its safety. Gold Exchange Traded Fund (Gold ETF) removes this concern. According to the data of Association of Mutual Funds in India i.e. Amfi, investors invested a lot of money in gold ETFs in the last month i.e. January. There was investment of Rs 657 crore in gold ETF in January. This is 7 times compared to last month.
Amfi data shows that with this investment, the asset under management (AUM) of the gold fund increased by 1.6 percent to Rs 27,778 crore by the end of January. This amount was Rs 27,336 crore at the end of December 2023. According to the data, net investment in gold ETFs in January increased to Rs 657.4 crore from Rs 88.3 crore in the previous month.
What is Gold ETF?
The facility of buying gold like shares is called Gold ETF. Because they are in electronic form, they are safe. Their buying and selling is also done through Demat account only. In this, gold is purchased in units. By selling it, you get not gold but an amount equal to the market price at that time.
Benefits of Gold ETF
- Gold ETF shares purchased by investors remain in the demat account. In such a situation, there is no worry about keeping it safe.
- There is always doubt about the purity of gold purchased from jewelers, but this is not the case with gold ETFs.
- One unit of ETF is equal to 1 gram of gold. Investors can also invest in gold ETFs on a small scale.
- Gold ETF is bought and sold at wholesale price only.
