I wanted to ask whether a gold ETF is a mutual fund or a share. After the completion of one year, is the money taxable or non-taxable?
Gold exchange traded fund (ETF) is a mutual fund, but of a different kind. The money which you have invested is utilized completely in buying gold. And when you sell it the rise and fall, which gold prices go through, is reflected in the price of the ETF.
The buying process is different as this is an ETF and it is listed in the markets. You have to order it from the stock brokers and buy it.
The tax treatment too is not like that of stocks. After buying it, whatever profit is there, if you sell it within one year, then it will be added to income and be taxed. And if you hold for one year then you would have the benefit of indexation, though the profit would not be fully tax free, unlike with shares.