Investing in GOLD ETFS this Diwali
Gold BeES (Gold Benchmark Exchange Traded Scheme) are offered by Benchmark, Kotak, SBI, UTI etc.
We recommend Benchmark, the minimum will be 1 unit. It is listed on the stock exchange and needs a trading and demat account. No SIP option is available.
Gold BeES offers a new, innovative, relatively cost-efficient and secure way to access the gold market. Gold BeES is a means of participating in the gold bullion market without the necessity of taking physical delivery of gold. It allows you to buy and sell that participation through the trading of a security on a National Stock Exchange. It is designed to provide results that, before expenses, very closely correspond to returns provided by domestic price of gold through physical gold.
How Does this work? The Gold BeES will be credited to the client's demat account based on his purchase value. One unit will be approximately equal to the price of 1 gm of gold. These units can be sold later on through your trading account in the secondary market.
Advantages of Investing through Gold ETF's:
- Potentially cheaper to have price exposure to gold price as compared to other available avenues.
- Quick and convenient dealing through demat account.
- No storage and security issues.
- Taxation, as of a debt mutual fund.
- Listed and traded on NSE just like any other stock.
- Ideal for retail investors, as one single unit can be purchased from the secondary market.
Benchmark Asset Management Co.: The ETF has been launched by Benchmark Asset Management Co., India's first AMC to focus on indexing and quantitative asset management. It is the largest ETF and index fund manager in Indian with total assets under management of Rs. 8172 crores as on Dec '06.You can buy these on a month on month basis.
Article Source: ArticlesBase.com
