I want to start investing in gold ETFs. What should I keep in mind? Is it better to invest through the ETF route than invest in a gold fund?
- Pradeep Goel
To invest in gold ETFs, you have to open a demat account and purchase units through a stock broker. On the other hand, gold funds are regular open-end funds and are easier to buy. But this convenience comes at a cost. Gold funds are 75 basis points to 1 per cent more expensive than gold ETFs, because the former invest in an underlying ETF. As far as performance is concerned, all gold ETFs and gold funds deliver almost the same returns.
This article was originally published on September 19, 2012.