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

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E-Gold

Updated on May 28, 2020 , 20036 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 2020

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 4.3% since its launch.  Return for 2019 was 21.4% , 2018 was 6.6% and 2017 was 1.3% .

Below is the key information for Invesco India Gold Fund

Invesco India Gold Fund
Growth
Launch Date 5 Dec 11
NAV (29 May 20) ₹14.2744 ↑ 0.29   (2.07 %)
Net Assets (Cr) ₹28 on 30 Apr 20
Category Gold - Gold
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio 2.6
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 Apr 15₹10,000
30 Apr 16₹10,872
30 Apr 17₹10,678
30 Apr 18₹10,865
30 Apr 19₹11,038
30 Apr 20₹16,475

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 ₹395,578.
Net Profit of ₹95,578
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 29 May 20

DurationReturns
1 Month -2.2%
3 Month 10.1%
6 Month 23%
1 Year 45.2%
3 Year 15.4%
5 Year 10.1%
10 Year
15 Year
Since launch 4.3%
Historical performance (Yearly) on absolute basis
YearReturns
2019 21.4%
2018 6.6%
2017 1.3%
2016 21.6%
2015 -15.1%
2014 -9%
2013 -7.6%
2012 11.3%
2011
2010
Fund Manager information for Invesco India Gold Fund
NameSinceTenure
Krishna Cheemalapati4 Jan 200.24 Yr.

Data below for Invesco India Gold Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash3.65%
Other96.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Invesco India Gold ETF
- | IVZINGOLD
97%₹27 Cr62,000
↑ 3,000
Triparty Repo
CBLO/Reverse Repo | -
3%₹1 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 4.7% since its launch.  Return for 2019 was 21.3% , 2018 was 6.8% and 2017 was 1.6% .

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 (29 May 20) ₹14.6017 ↓ -0.11   (-0.74 %)
Net Assets (Cr) ₹138 on 30 Apr 20
Category Gold - Gold
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.5
Sharpe Ratio 2.9
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 Apr 15₹10,000
30 Apr 16₹10,753
30 Apr 17₹10,546
30 Apr 18₹10,963
30 Apr 19₹10,965
30 Apr 20₹16,561

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 ₹385,859.
Net Profit of ₹85,859
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 29 May 20

DurationReturns
1 Month -3.7%
3 Month 10%
6 Month 21.6%
1 Year 44%
3 Year 14.8%
5 Year 9.7%
10 Year
15 Year
Since launch 4.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 21.3%
2018 6.8%
2017 1.6%
2016 11.5%
2015 -7.2%
2014 -9.4%
2013 -6.9%
2012
2011
2010
Fund Manager information for Aditya Birla Sun Life Gold Fund
NameSinceTenure
Lovelish Solanki30 Jun 181.75 Yr.

Data below for Aditya Birla Sun Life Gold Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash15.18%
Other84.82%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Aditya BSL Gold ETF
- | 533408
85%₹117 Cr262,000
↑ 37,000
Net Receivables / (Payables)
Net Current Assets | -
8%₹11 Cr
Clearing Corporation Of India Limited
CBLO | -
7%₹10 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 4.4% since its launch.  Return for 2019 was 22.8% , 2018 was 6.4% and 2017 was 3.5% .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (29 May 20) ₹14.5446 ↓ -0.10   (-0.67 %)
Net Assets (Cr) ₹526 on 30 Apr 20
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.43
Sharpe Ratio 3.09
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 Apr 15₹10,000
30 Apr 16₹10,938
30 Apr 17₹10,411
30 Apr 18₹11,024
30 Apr 19₹11,125
30 Apr 20₹16,589

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 ₹395,578.
Net Profit of ₹95,578
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 29 May 20

DurationReturns
1 Month -3.6%
3 Month 9.3%
6 Month 21.9%
1 Year 45.3%
3 Year 16.1%
5 Year 10.2%
10 Year
15 Year
Since launch 4.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 22.8%
2018 6.4%
2017 3.5%
2016 10%
2015 -8.1%
2014 -10.2%
2013 -6.6%
2012 10.9%
2011
2010
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raviprakash Sharma12 Sep 118.64 Yr.

Data below for SBI Gold Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash0.5%
Other99.5%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI ETF Gold
- | SETFGOLD
100%₹525 Cr1,218,314
↑ 18,500
Treps
CBLO/Reverse Repo | -
1%₹6 Cr
Net Receivable / Payable
CBLO | -
1%-₹5 Cr

4. Nippon India 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.

Nippon India 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 7.4% since its launch.  Return for 2019 was 22.5% , 2018 was 6% and 2017 was 1.7% .

Below is the key information for Nippon India Gold Savings Fund

Nippon India Gold Savings Fund
Growth
Launch Date 7 Mar 11
NAV (29 May 20) ₹19.2875 ↓ -0.09   (-0.48 %)
Net Assets (Cr) ₹921 on 30 Apr 20
Category Gold - Gold
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.63
Sharpe Ratio 2.77
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 Apr 15₹10,000
30 Apr 16₹10,762
30 Apr 17₹10,416
30 Apr 18₹10,876
30 Apr 19₹10,967
30 Apr 20₹16,537

Nippon India 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 ₹385,859.
Net Profit of ₹85,859
Invest Now

Returns for Nippon India 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 29 May 20

DurationReturns
1 Month -3.3%
3 Month 9.7%
6 Month 22.6%
1 Year 45%
3 Year 15.4%
5 Year 10%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 22.5%
2018 6%
2017 1.7%
2016 11.6%
2015 -8.1%
2014 -9.8%
2013 -7.6%
2012 11.2%
2011
2010
Fund Manager information for Nippon India Gold Savings Fund
NameSinceTenure
Mehul Dama6 Nov 181.4 Yr.

Data below for Nippon India Gold Savings Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash2.55%
Other97.45%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India ETF Gold BeES
- | GOLDBEES
100%₹919 Cr215,942,235
↑ 7,600,000
Triparty Repo
CBLO/Reverse Repo | -
2%₹20 Cr
Net Current Assets
Receivables | -
2%-₹18 Cr
Cash Margin - Ccil
Net Current Assets | -
0%₹0 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 7.5% since its launch.  Return for 2019 was 24.1% , 2018 was 7.3% and 2017 was 2.5% .

Below is the key information for Kotak Gold Fund

Kotak Gold Fund
Growth
Launch Date 25 Mar 11
NAV (29 May 20) ₹19.4807 ↓ -0.06   (-0.29 %)
Net Assets (Cr) ₹387 on 30 Apr 20
Category Gold - Gold
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.6
Sharpe Ratio 2.7
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 Apr 15₹10,000
30 Apr 16₹10,808
30 Apr 17₹10,695
30 Apr 18₹11,122
30 Apr 19₹11,230
30 Apr 20₹16,653

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 ₹395,578.
Net Profit of ₹95,578
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 29 May 20

DurationReturns
1 Month -2.1%
3 Month 9.7%
6 Month 23.3%
1 Year 47.1%
3 Year 16.8%
5 Year 10.5%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2019 24.1%
2018 7.3%
2017 2.5%
2016 10.2%
2015 -8.4%
2014 -10%
2013 -7.7%
2012 10.9%
2011
2010
Fund Manager information for Kotak Gold Fund
NameSinceTenure
Abhishek Bisen25 Mar 119.03 Yr.

Data below for Kotak Gold Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash3.3%
Other96.7%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Gold ETF
- | KOTAKGOLDE
98%₹378 Cr8,937,885
↑ 1,680,000
Triparty Repo
CBLO/Reverse Repo | -
3%₹13 Cr
Net Current Assets/(Liabilities)
Receivables | -
1%-₹4 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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