I want to invest in the Gold ETFs. Is it the correct time to invest? Which is the best Gold ETF to invest?
At the current price one will be apprehensive about investing in gold, moreover we strongly believe that one should invest in gold only when already has a well diversified portfolio and is looking to invest in gold as a hedge and not more than 5-10 per cent of the portfolio value should be allocated to gold. You can invest in gold ETF if your existing portfolio has a reached a level where adding gold makes sense.
Since gold ETFs invest directly in physical gold, the buying and selling price of all gold ETFs are identical. The returns generated by gold ETFs at any given point of time are also similar. However, there will be a minuscule difference between the schemes because of their different expense ratios. So, when investing in gold ETF, go for the one that is the least expensive. You should also have a demat account when investing in gold ETFs.