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Akshay Tritiya and Gold ETFs

Akshay Tritiya has become a major gold-buying occasion over the years

Akshay Tritiya is just around the corner. Considered one of the most auspicious days in the Hindu calendar, Akshay Tritiya this year falls on May 6, 2011. A Hindu and Jain festival, Akshay Tritiya is celebrated all over the country by offering prayers to god Vishnu. The commencement of new activities on this day, as well as the purchase of valuables is considered to bring prosperity. Akshay Tritiya is also widely known as an auspicious day to bestow luck and success on loved ones through the giving of gifts.

Of course, the day is celebrated widely by buying gold. In India, gold has immense religious, social as well as investable significance. Through ages, people have considered Akshay Tritiya as the finest day to buy gold. This makes even more sense in unsteady economic conditions that we are seeing today. Today, gold is not only a sign of prosperity and upliftment, it is one of the soundest investment vehicles as well.

However, buying gold is not an easy proposition for most people. To buy physical gold, one needs cash in substantial amounts. Then, there is the assurance of quality that one needs to look at. Keeping physical gold safely and securely is a tough task in itself too. To overcome all of these problems and still invest in gold on the auspicious day of Akshay Tritiya, an investor can opt for Gold Exchange Traded Funds (ETF).

A Gold ETF is an electronic way of purchasing gold. When you look to invest in a Gold ETF, you don’t buy physical gold, you buy units of a mutual fund. A Gold ETF is a fund whose units are bought and sold on the stock exchanges, which in turn invests the investors’ money in physical gold. Investments in Gold ETFs have many advantages:
• Freedom from the hassles of buying, carrying and safeguarding physical gold
• Assurance of quality
• No premium or making charges, as incurred in the purchase of gold jewellery
• No need to pay wealth tax
• Buy and sell easily on the exchange, even in small quantities
• Asses the value of your holding on a real-time basis

To invest in a Gold ETF, an investor requires a demit account. Currently, there are XX Gold ETFs available to the Indian investor. Since all Gold ETFs invest in physical gold, there won’t be a significant difference in their performance. Choose the one you are comfortable with and fulfill your dream of buying gold in celebration of Akshay Tritiya.