Gold etf

Hi

i want to invest in gold etf. Plz tell me the procedure for investment. I want to invest rs.1 lakh in gold etf so how much brokerage and other charges will be levied on my investment. As i m totally new to investment market. Plz plz help me.

buying gold etf's is like buying shares only. so, u have to have a PAN card, demat account, etc. Once if u have a demat account, through any sharebroker u can buy gold etf. The brokerage depends on the broker's rate. In any case, normally, it may not go beyond 1%.

thnks mr.rvm123

plz could let me knw tht brokerage will charge once when i bur or sell it will be charged on monthly basis and also plz tell me cn i buy or sell gold etf anytime???

Pradeep,

think of buying an etf like buying a share. In your broker's terminal select NSE for exchange , then select equity under instrument , then select GOLDBEES, they have the lowest charges for ETF when ompared with UTI , HDFC etc.

You will now get quotes ( live , if u have a live terminal ) just like you get for shares of any company. Now go ahead and buy. Since this is a delivery based product brokerage will be as per delivery brokerage which will again depend on what you negotiated with your broker at the time of opening the account.

Selling can be done anytime just like in shares.

U can open trading account with HDFC Securities Ltd.

User Friendly website...Order placing is available / quick on internet, telephone, branches.
They have recently started mobile trading.

for more information you may contact there customer care desk at 39019400 & they will assist you further

brokerage will be on buying and selling. no monthly charges will be there. Normally 1 unit of gold etf will be equivalent to the cost of 1 gm of gold. (except Q-gold which is of 0.5 gm denomination). Cost of each unit will vary from 2520 to may be 2800. I think reliance gold is costing around 2520. HDFC, etc may be little more.
1 unit of gold etf can be converted to 1 gm of physical gold in some places like Mumbai, Ahmedabad, etc, after paying some % as conversion charges. In other places, so far, this facilitiy is not available. However, u can sell in open market like any share.

Demat account is a must. you can buy any of them. all will give almost the same return only.

This is a million dollar question. If you look at the historical price of gold, it is always appreciating only. What is the saturation point is not known. Considering that we may conclude that, it may not fall. But the % of return cannot be anticipated at any point of time.

Hello,

Should we do one time investment (NFO) in lets say HDFC Gold ETF or should we invest as SIP???
Because SIP fundas say that its not very useful when the proces go up OR down continuously?

Also, does anyone know if the price of gold has ever gone down, is there always appreciation???



Regards,
Kunal.

You can refer to the Economic Times group edition "Wealth" dated 24.10.2011. There was an article regarding this. In this it is mentioned that during the past 6 or 7 years, only in one year gold price has gone up by 0.5%. in all other years it has gone up much more and some years more than 25%. The exact % I can give tomorrow, as the paper is not readily available with me. Seeing this trend, there MAY not be any price reduction.