Gold has always been one of the favorite investment instruments for investors due to its shining and steady returns. It is hard to find a person who has never invested in this glittering metal. In the past, the shining, yellow and precious metal has proven to be a strong supporter against downturns and market inflation. In recent times, it has been performing well with handsome returns. However, those who find it inconvenient to buy gold or want to diversify their portfolio look for more evolved forms of investment like gold ETFs.
Simply put, investing via ETFs (Exchange Traded Funds) is a smart way to invest in Gold online. Gold (ETFs) is an open-ended financial product which is listed on a stock exchange like shares of an individual company. An investor can easily buy or sell Gold ETF as and when needed. Each unit of ETF represents the portfolio of stocks. When you invest in gold ETF, you would not own any gold actually. You are not going to get its physical delivery. Similarly, when gold ETF is redeemed, you will not receive the gold in any form. You will get its cash equivalent.
There are numerous reasons why to invest in gold ETFs as compared to investing in physical gold.
You can buy or sell the Gold ETFs like it happens in stock exchange which makes it an extremely liquid asset in nature. No need to worry about finding a suitable buyer like in a case of the liquidity of physical gold.
Gold ETF transactions happen online via your Demat account. So, it is very easier, convenient and transparent way to buy and sell gold ETFs. No need to worry about loss or theft of physical gold. Gold ETFs give you an opportunity to get exposure to the performance of gold.
It is possible to easily track the value of investment in gold ETF in real time. This is beneficial in making an instant decision to sell or buy gold and make the most of a positive price movement.
As the transactions in gold ETF happen online, the cost of buying and selling gold ETF is comparatively lower than the costs associated with the buying and selling of gold in physical form. No need to worry about how to store gold or ensure physical gold.
Gold ETF can be a good option to diversify your investment portfolio and thus mitigate the risk of your investments.
All in all, Gold ETF is a smart investment option with its manifold benefits. Many types of gold ETFs are out there; however, you need to have look at the performance of a few of the more popular funds like Axis gold ETF. Figure out if it works well for your investment portfolio requirements then get started to reap manifold benefits now. Once you get the better understanding of gold ETS, it will be worthy of investment.