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E-Gold | E-Gold Investment | How to Invest in E-Gold- Fincash

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E-Gold

Updated on December 1, 2019 , 10715 views

What is E-Gold?

E-Gold is another form of Investing in gold where no physical gold is traded. In 2010, National Spot Exchange (NSE) launched e-gold in India in order to benefit investors who wish to invest in gold.

The biggest benefit of e-gold is that it allows investors to invest in gold with much lower denominations than physical gold. But, before going into details, let us understand the basics of Investing in Gold in the electronic form.

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E-Gold Investment

E-gold is the process of buying gold electronically. To invest here, one should have a trading account with specified NSEL dealers. E-gold units can be bought and sold through the exchange (NSE) just like shares. Here one unit of e-gold is equal to 1 gram of gold.

Investors who wish to invest in gold as part of their long-term Financial goals can buy e-gold in small quantities and keep it in their Demat account. Once their target is achieved, they can take the physical delivery of gold through the exchange. Those who don’t wish to take the physical delivery can always sell the electronic units and encash them.

By buying gold in electronic form, one need not worry about the purity of gold and the safe-keeping of gold.

Advantages of E-Gold

  • Gold rates on NSE are based on Indian market rates.

  • Investors can buy and sell gold in small denominations. For e.g.- 1gm, 2gm of gold.

  • Transparency in pricing and seamless trading is one of the major advantages of this product.

  • This product is high in liquidity. One can sell it at any point of time.

  • No impurity risks.

E-Gold- Advantages Disadvantages
Buy/Sell gold in small denominations Storage cost- 60 paise/per unit/pm
Seamless Trading Hacking Issue
Liquidity -
No impurity risks -

Disadvantages of E-Gold

  • The storage charge of this product is 60 paisa per unit per month.

  • Hacking of an account can sometimes be an issue, however with today's security systems in place with exchanges this does not usually take place. At a client account level, the customer should maintain the secrecy of passwords and ensure that the account is protected.

How to Invest in E-Gold?

  • Open a Demat Account- For purchasing commodities in NSE, it is necessary to have a Demat account. One can keep a separate Demat account for equities and commodities or keep the same one. To open an account, one can submit all the required documentation to NSE.

  • Trading- Once your account is opened, you can log in and buy e-gold. You can trade from 10 am to 11:30 pm on weekdays. Your gold units would get credited to your Demat account in T+2 days (date plus one day).

  • Physical Delivery- If you want, you can take physical delivery of gold at any time by redeeming e-gold units to your Demat account.

E-Gold- Taxes and Charges

  • It charges INR 100 as a conversion rate of 1 gram coin and INR 400 for conversion of 8 gram/10 gram coins. In case of 100-gram coins and one-kg bar, the exchange doesn't charge any cost.

  • If you hold this product for less than 36 months, then short-term Capital Gain tax is applicable as per the slab rates. And if e-gold is held for than 36 months, then e-Gold Capital gain tax applicable at 10 percent.

  • One is also required to pay VAT @ 1% throughout the country as well as octroi charges (when your purchase enters the state) to convert electronic units into physical coins.

  • The storage charge of this product which is held in physical form by NSE is 60 paisa per unit per month.

Invest in Gold Funds Without Demat Account

In Gold Mutual Funds you don't need a Demat account to invest. These funds invest in a Gold ETF floated by the same AMC (Asset Management Company). Investors can invest in Gold Mutual Funds through the SIP route, which is not possible when investing in the ETF or other gold investments.

Feature of Gold Funds

  • Minimum investment amount in gold mutual funds is of INR 1,000 (as monthly SIP)

  • Since gold mutual funds are not traded in the market, they can be bought/sold based on NAV for the day

  • As gold mutual fund’s units can be bought or sold from the fund house, investors do not face liquidity risks.

Best Gold Funds to Invest 2019

1. Invesco India Gold Fund

To provide returns that closely corresponds to returns provided by Invesco India Gold Exchange Traded Fund.

Invesco India Gold Fund is a Gold - Gold fund was launched on 5 Dec 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 2% since its launch.  Return for 2018 was 6.6% , 2017 was 1.3% and 2016 was 21.6% .

Below is the key information for Invesco India Gold Fund

Invesco India Gold Fund
Growth
Launch Date 5 Dec 11
NAV (03 Dec 19) ₹11.749 ↑ 0.14   (1.20 %)
Net Assets (Cr) ₹15 on 31 Oct 19
Category Gold - Gold
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio 0.92
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹8,572
30 Nov 16₹10,430
30 Nov 17₹10,583
30 Nov 18₹10,837
30 Nov 19₹13,327

Invesco India Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for Invesco India Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 19

DurationReturns
1 Month -1.4%
3 Month -1.5%
6 Month 17.7%
1 Year 23.2%
3 Year 9.3%
5 Year 6.3%
10 Year
15 Year
Since launch 2%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.6%
2017 1.3%
2016 21.6%
2015 -15.1%
2014 -9%
2013 -7.6%
2012 11.3%
2011
2010
2009
Fund Manager information for Invesco India Gold Fund
NameSinceTenure
Nitish Sikand5 Dec 117.49 Yr.

Data below for Invesco India Gold Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash2.11%
Other97.89%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Invesco India Gold ETF
- | IVZINGOLD
98%₹15 Cr42,000
Triparty Repo
CBLO/Reverse Repo | -
2%₹0 Cr
Net Receivables / (Payables)
Net Current Assets | -
0%₹0 Cr

2. Aditya Birla Sun Life Gold Fund

An Open ended Fund of Funds Scheme with the investment objective to provide returns that tracks returns provided by Birla Sun Life Gold ETF (BSL Gold ETF).

Aditya Birla Sun Life Gold Fund is a Gold - Gold fund was launched on 20 Mar 12. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 2.4% since its launch.  Return for 2018 was 6.8% , 2017 was 1.6% and 2016 was 11.5% .

Below is the key information for Aditya Birla Sun Life Gold Fund

Aditya Birla Sun Life Gold Fund
Growth
Launch Date 20 Mar 12
NAV (03 Dec 19) ₹12.0031 ↑ 0.02   (0.21 %)
Net Assets (Cr) ₹74 on 31 Oct 19
Category Gold - Gold
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.5
Sharpe Ratio 1.18
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹9,020
30 Nov 16₹10,866
30 Nov 17₹10,850
30 Nov 18₹11,139
30 Nov 19₹13,663

Aditya Birla Sun Life Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for Aditya Birla Sun Life Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 19

DurationReturns
1 Month -2.8%
3 Month -2.9%
6 Month 17.2%
1 Year 21.4%
3 Year 6.7%
5 Year 6.1%
10 Year
15 Year
Since launch 2.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.8%
2017 1.6%
2016 11.5%
2015 -7.2%
2014 -9.4%
2013 -6.9%
2012
2011
2010
2009
Fund Manager information for Aditya Birla Sun Life Gold Fund
NameSinceTenure
Lovelish Solanki30 Jun 180.59 Yr.

Data below for Aditya Birla Sun Life Gold Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash2.72%
Other97.28%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Aditya BSL Gold ETF
- | 533408
97%₹72 Cr203,000
Clearing Corporation Of India Limited
CBLO | -
3%₹2 Cr
Net Receivables / (Payables)
Net Current Assets | -
0%₹0 Cr

3. SBI Gold Fund

The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS).

SBI Gold Fund is a Gold - Gold fund was launched on 12 Sep 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 2.2% since its launch.  Return for 2018 was 6.4% , 2017 was 3.5% and 2016 was 10% .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (03 Dec 19) ₹11.9671 ↑ 0.04   (0.37 %)
Net Assets (Cr) ₹388 on 31 Oct 19
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.43
Sharpe Ratio 1.08
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹9,368
30 Nov 16₹10,596
30 Nov 17₹10,646
30 Nov 18₹10,822
30 Nov 19₹13,488

SBI Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for SBI Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 19

DurationReturns
1 Month -2%
3 Month -2.6%
6 Month 18%
1 Year 23.6%
3 Year 9.1%
5 Year 6.2%
10 Year
15 Year
Since launch 2.2%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.4%
2017 3.5%
2016 10%
2015 -8.1%
2014 -10.2%
2013 -6.6%
2012 10.9%
2011
2010
2009
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raviprakash Sharma12 Sep 117.64 Yr.

Data below for SBI Gold Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash0.39%
Other99.88%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI ETF Gold
- | SETFGOLD
100%₹387 Cr1,117,222
↑ 8,690
Treps
CBLO/Reverse Repo | -
1%₹3 Cr
Net Receivable / Payable
Receivables | -
0%-₹2 Cr

4. Reliance Gold Savings Fund

The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance ETF Gold BeES.

Reliance Gold Savings Fund is a Gold - Gold fund was launched on 7 Mar 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 5.3% since its launch.  Return for 2018 was 6% , 2017 was 1.7% and 2016 was 11.6% .

Below is the key information for Reliance Gold Savings Fund

Reliance Gold Savings Fund
Growth
Launch Date 7 Mar 11
NAV (03 Dec 19) ₹15.7697 ↑ 0.04   (0.23 %)
Net Assets (Cr) ₹750 on 31 Oct 19
Category Gold - Gold
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.63
Sharpe Ratio 1.03
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-1 Years (2%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹9,371
30 Nov 16₹10,763
30 Nov 17₹10,628
30 Nov 18₹10,834
30 Nov 19₹13,359

Reliance Gold Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Reliance Gold Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 19

DurationReturns
1 Month -2.1%
3 Month -2.9%
6 Month 17.2%
1 Year 22.3%
3 Year 8.3%
5 Year 5.9%
10 Year
15 Year
Since launch 5.3%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6%
2017 1.7%
2016 11.6%
2015 -8.1%
2014 -9.8%
2013 -7.6%
2012 11.2%
2011
2010
2009
Fund Manager information for Reliance Gold Savings Fund
NameSinceTenure
Mehul Dama6 Nov 180.9 Yr.

Data below for Reliance Gold Savings Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash0.52%
Other99.48%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India ETF Gold BeES
- | GOLDBEES
100%₹748 Cr2,196,058
↓ -3,550
Triparty Repo
CBLO/Reverse Repo | -
0%₹4 Cr
Net Current Assets
Net Current Assets | -
0%-₹2 Cr

5. Kotak Gold Fund

The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.

Kotak Gold Fund is a Gold - Gold fund was launched on 25 Mar 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 5.4% since its launch.  Return for 2018 was 7.3% , 2017 was 2.5% and 2016 was 10.2% .

Below is the key information for Kotak Gold Fund

Kotak Gold Fund
Growth
Launch Date 25 Mar 11
NAV (03 Dec 19) ₹15.8047 ↓ -0.01   (-0.09 %)
Net Assets (Cr) ₹198 on 31 Oct 19
Category Gold - Gold
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.6
Sharpe Ratio 1.01
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Nov 14₹10,000
30 Nov 15₹9,420
30 Nov 16₹10,601
30 Nov 17₹10,530
30 Nov 18₹10,894
30 Nov 19₹13,528

Kotak Gold Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for Kotak Gold Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Dec 19

DurationReturns
1 Month -2.5%
3 Month -3.1%
6 Month 17.7%
1 Year 23.3%
3 Year 9.2%
5 Year 6.1%
10 Year
15 Year
Since launch 5.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 7.3%
2017 2.5%
2016 10.2%
2015 -8.4%
2014 -10%
2013 -7.7%
2012 10.9%
2011
2010
2009
Fund Manager information for Kotak Gold Fund
NameSinceTenure
Abhishek Bisen25 Mar 118.19 Yr.

Data below for Kotak Gold Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash4.32%
Other95.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Gold ETF
- | KOTAKGOLDE
96%₹190 Cr5,564,490
↑ 126,294
Triparty Repo
CBLO/Reverse Repo | -
4%₹8 Cr
Net Current Assets/(Liabilities)
Net Current Assets | -
0%₹0 Cr

How to Invest in Gold Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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