Ask Value Research

Gold ETFs are Cheaper

Gold funds are slightly costlier than gold ETFs. Find out the other differences in them...

What is the difference between gold ETFs and gold funds? Which one is better?
- Vipul

A gold ETF invests directly into gold, while a gold fund invests in a gold ETF. To invest in a gold ETF, you need to have a demat account. On the other hand, gold funds are bought like regular open-ended mutual funds. The NAV of both kinds of funds changes as per the fluctuations in the price of gold. As far as their expense ratio is concerned, a gold fund will be 0.5 per cent to 1 per cent costlier than gold ETFs. All gold ETFs deliver similar kind of returns.



This article was originally published on January 22, 2013.

Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories

Informed fund ideas, better judgment. Every month. Mutual Fund Insight, every month since October 2002.

Take charge. Know more. Keep more. Mutual Fund Insight helps you do all three — every month