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Digital gold vs gold etf

digital gold, you buy the actual value of gold which is stored in physical form in a vault. ... Gold ETFs incur recurring annual charges of around 0.5-1%. You don't need to hold a Demat account to buy digital gold, like in the case of gold ETFs and SGB.<br>

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Digital gold vs gold etf

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  1. Digital gold vs gold etf

  2. Digital gold, you buy the actual value of gold which is stored in physical form in a vault. ... Gold ETFs incur recurring annual charges of around 0.5-1%. You don't need to hold a Demat account to buy digital gold, like in the case of gold ETFs and SGB. This is done to mimic the price performance of the physical form of gold. Put simply, gold ETFs are expected to offer returns similar to that offered by physical gold, Digital gold vs gold etf

  3. before scheme expenses and tracking error. Lower the tracking error, better it is for the investor. Expense ratio for these funds range between 0.55% and 1.18%, according to Value Research -a mutual fund tracking firm. An investor can purchase and sell units of a gold ETF on the stock exchange. He/she, however, needs a demat account to purchase the units of gold ETF.

  4. A gold ETF negates the need to hold and store physical gold. But it has one drawback: it doesnʼt allow you to do a systematic investment plan. Also, one may find it painful to keep placing buy orders at regular intervals on the stock exchange. A few brokers allow purchase of gold ETF units at a predetermined interval, say monthly or weekly using Equity Systematic Investment Plan (Equity SIP). However, in that case the investor needs to specify the number of units to be bought at the time of each purchase. Not everyone is comfortable with such an arrangement.

  5. To overcome all these issues and allow investors to buy gold ETFs of a fixed amount per month (or at a regular interval of choice) without insisting on a demat account, the mutual funds came out with gold saving funds. These are feeder funds that buy units of gold ETF. These schemes allow investors to make SIPs and help them allocate money in a staggered manner. Of course, this convenience comes at an additional layer of costs.

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