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Gold ETFs provide investors with a favorable chance to accumulate wealth over a certain time period. As the Indian stock market is bound to gyrate by the economic uncertainties, investors keep looking to invest their wealth in a secured manner. And, virtual gold can definitely be one of those safe investment options. As risk aversion is taking over the stocks and other investment avenues, Gold ETFs are only looking all the more lustrous. Let's check out some of the benefits of investing in Gold ETFs. > It is always a good idea to invest in gold ETFs. Whenever you wish to buy physical gold, be it gold coins or jewelry, you usually pay some added amount as making charges. On the other hand, you don't need to pay any extra amount when it comes to buying gold ETFs. When required, you can exchange them in multiple kilograms of units of 0.995 purity. > Investing in gold ETFs offers a lot of advantages as the returns are almost similar compared to investing in physical gold. However, with gold ETFs you need not worry about anything. There is neither the risk of theft nor do you have to worry about the storage issues, unlike physical gold, because gold ETFs are in demat or paper form. > At times, banks and jewelers may refuse to buyback the gold coins and gold bars. However, you can conveniently sell off your gold ETFs with the help of your broker at any point of time. > Investing in physical gold requires you to look for safe or a locker facility in your bank where you can store it. For this, you end up paying additional fees whereas there is no extra fees involved in buying and storing gold ETFs. > Gold ETFs are sold at transparent rates all over India. As far as tax benefits are concerned, gold ETFs score better compared to physical gold. Gold ETFs do not carry any sales tax, VAT or securities transaction tax. > Since these units are traded on the exchange, just like stocks, they are eligible for the long-term capital gains after a year unlike physical gold, which is eligible only after three years. In addition, investors don't need to bear the burden of wealth tax on gold ETFs, unlike gold investment in India. (Contributed by HDFC Securities)
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