ETF are basically a passively managed fund similar to Index Funds which tracks benchmark index. They can be traded like stocks.
Gold ETF are open ended fund through which investor can invest in gold without taking physical delivery. The fund tracks prices of gold.
The best part of it is one can do intra day trade on it which is not possible for regular mutual fund units. They are cheapest, easiest & provide more tax benefits than other funds.
With Security as a prime concern & Bank lockers difficult to get, Gold ETF offers a more safe way of stocking gold in a form of Demat. It’s a more practical investment since it offers easy liquidity & a security.
Since every commodity & equity has its own cyclical demand, one needs to understand it properly for a prudent decision to invest.
Disclaimer & Disclosure as regular from previous posts.
This blog is meant for ideas on Stocks, commodity & Forex trading. It emphasizes on importance of Technical Analysis using Swing & Candlestick Patterns. Also covers articles on Insurance, Loans & Mortage to complete the entire Financial Basket.
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