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

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E-Gold

Updated on March 25, 2024 , 76565 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.

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.

E-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.

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

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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 2024

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 5.5% since its launch.  Return for 2023 was 14.5% , 2022 was 12.8% and 2021 was -5.5% .

Below is the key information for Invesco India Gold Fund

Invesco India Gold Fund
Growth
Launch Date 5 Dec 11
NAV (27 Mar 24) ₹19.3471 ↑ 0.04   (0.20 %)
Net Assets (Cr) ₹63 on 29 Feb 24
Category Gold - Gold
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 0.47
Sharpe Ratio 0.35
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
28 Feb 19₹10,000
29 Feb 20₹12,466
28 Feb 21₹13,436
28 Feb 22₹14,484
28 Feb 23₹15,752
29 Feb 24₹17,432

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 ₹436,710.
Net Profit of ₹136,710
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 27 Mar 24

DurationReturns
1 Month 6.8%
3 Month 5.4%
6 Month 13.1%
1 Year 11.3%
3 Year 12.7%
5 Year 14.4%
10 Year
15 Year
Since launch 5.5%
Historical performance (Yearly) on absolute basis
YearReturns
2023 14.5%
2022 12.8%
2021 -5.5%
2020 27.2%
2019 21.4%
2018 6.6%
2017 1.3%
2016 21.6%
2015 -15.1%
2014 -9%
Fund Manager information for Invesco India Gold Fund
NameSinceTenure
Krishna Cheemalapati4 Jan 204.16 Yr.

Data below for Invesco India Gold Fund as on 29 Feb 24

Asset Allocation
Asset ClassValue
Cash2.15%
Other97.85%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Invesco India Gold ETF
- | -
100%₹62 Cr113,043
Triparty Repo
CBLO/Reverse Repo | -
1%₹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 5.8% since its launch.  Return for 2023 was 14.5% , 2022 was 12.3% and 2021 was -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 (26 Mar 24) ₹19.7465 ↑ 0.03   (0.16 %)
Net Assets (Cr) ₹293 on 29 Feb 24
Category Gold - Gold
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio 0.31
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load 0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 19₹10,000
29 Feb 20₹12,556
28 Feb 21₹13,497
28 Feb 22₹14,634
28 Feb 23₹15,936
29 Feb 24₹17,531

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 ₹426,080.
Net Profit of ₹126,080
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 27 Mar 24

DurationReturns
1 Month 6.5%
3 Month 5%
6 Month 11.5%
1 Year 9%
3 Year 12.6%
5 Year 14%
10 Year
15 Year
Since launch 5.8%
Historical performance (Yearly) on absolute basis
YearReturns
2023 14.5%
2022 12.3%
2021 -5%
2020 26%
2019 21.3%
2018 6.8%
2017 1.6%
2016 11.5%
2015 -7.2%
2014 -9.4%
Fund Manager information for Aditya Birla Sun Life Gold Fund
NameSinceTenure
Pranav Gupta31 Mar 230.92 Yr.
Haresh Mehta28 Apr 230.84 Yr.

Data below for Aditya Birla Sun Life Gold Fund as on 29 Feb 24

Asset Allocation
Asset ClassValue
Cash3.53%
Other96.47%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Aditya BSL Gold ETF
- | -
99%₹291 Cr52,257,587
↑ 225,000
Clearing Corporation Of India Limited
CBLO/Reverse Repo | -
1%₹3 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 5.6% since its launch.  Return for 2023 was 14.1% , 2022 was 12.6% and 2021 was -5.7% .

Below is the key information for SBI Gold Fund

SBI Gold Fund
Growth
Launch Date 12 Sep 11
NAV (27 Mar 24) ₹19.8941 ↑ 0.04   (0.19 %)
Net Assets (Cr) ₹1,507 on 29 Feb 24
Category Gold - Gold
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.24
Sharpe Ratio 0.35
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
28 Feb 19₹10,000
29 Feb 20₹12,697
28 Feb 21₹13,651
28 Feb 22₹14,686
28 Feb 23₹16,044
29 Feb 24₹17,775

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 ₹436,710.
Net Profit of ₹136,710
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 27 Mar 24

DurationReturns
1 Month 6.7%
3 Month 4.9%
6 Month 12.9%
1 Year 11.4%
3 Year 12.9%
5 Year 14.6%
10 Year
15 Year
Since launch 5.6%
Historical performance (Yearly) on absolute basis
YearReturns
2023 14.1%
2022 12.6%
2021 -5.7%
2020 27.4%
2019 22.8%
2018 6.4%
2017 3.5%
2016 10%
2015 -8.1%
2014 -10.2%
Fund Manager information for SBI Gold Fund
NameSinceTenure
Raviprakash Sharma12 Sep 1112.48 Yr.

Data below for SBI Gold Fund as on 29 Feb 24

Asset Allocation
Asset ClassValue
Cash1.52%
Other98.48%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Gold ETF
- | -
100%₹1,507 Cr277,817,928
↓ -1,343,218
Treps
CBLO/Reverse Repo | -
0%₹3 Cr
Net Receivable / Payable
CBLO | -
0%-₹3 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 7.6% since its launch.  Return for 2023 was 14.3% , 2022 was 12.3% and 2021 was -5.5% .

Below is the key information for Nippon India Gold Savings Fund

Nippon India Gold Savings Fund
Growth
Launch Date 7 Mar 11
NAV (27 Mar 24) ₹26.0821 ↓ -0.04   (-0.14 %)
Net Assets (Cr) ₹1,589 on 29 Feb 24
Category Gold - Gold
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.38
Sharpe Ratio 0.38
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
28 Feb 19₹10,000
29 Feb 20₹12,623
28 Feb 21₹13,560
28 Feb 22₹14,621
28 Feb 23₹15,845
29 Feb 24₹17,582

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 ₹436,710.
Net Profit of ₹136,710
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 27 Mar 24

DurationReturns
1 Month 6.5%
3 Month 4.7%
6 Month 12.9%
1 Year 11.2%
3 Year 12.7%
5 Year 14.3%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2023 14.3%
2022 12.3%
2021 -5.5%
2020 26.6%
2019 22.5%
2018 6%
2017 1.7%
2016 11.6%
2015 -8.1%
2014 -9.8%
Fund Manager information for Nippon India Gold Savings Fund
NameSinceTenure
Himanshu Mange23 Dec 230.19 Yr.

Data below for Nippon India Gold Savings Fund as on 29 Feb 24

Asset Allocation
Asset ClassValue
Cash1.24%
Other98.76%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India ETF Gold BeES
- | -
100%₹1,589 Cr301,090,489
↑ 725,000
Triparty Repo
CBLO/Reverse Repo | -
0%₹4 Cr
Net Current Assets
Net Current Assets | -
0%-₹4 Cr
Cash Margin - Ccil
CBLO | -
0%₹0 Cr

5. HDFC Gold Fund

To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund (HGETF).

HDFC Gold Fund is a Gold - Gold fund was launched on 24 Oct 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 6% since its launch.  Return for 2023 was 14.1% , 2022 was 12.7% and 2021 was -5.5% .

Below is the key information for HDFC Gold Fund

HDFC Gold Fund
Growth
Launch Date 24 Oct 11
NAV (27 Mar 24) ₹20.4862 ↑ 0.10   (0.50 %)
Net Assets (Cr) ₹1,682 on 29 Feb 24
Category Gold - Gold
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.54
Sharpe Ratio 0.35
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load 0-6 Months (2%),6-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 19₹10,000
29 Feb 20₹12,536
28 Feb 21₹13,570
28 Feb 22₹14,617
28 Feb 23₹15,861
29 Feb 24₹17,552

HDFC 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 ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for HDFC 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 27 Mar 24

DurationReturns
1 Month 7.4%
3 Month 5.4%
6 Month 13.8%
1 Year 11.8%
3 Year 13%
5 Year 14.5%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
2023 14.1%
2022 12.7%
2021 -5.5%
2020 27.5%
2019 21.7%
2018 6.6%
2017 2.8%
2016 10.1%
2015 -7.3%
2014 -9.8%
Fund Manager information for HDFC Gold Fund
NameSinceTenure
Arun Agarwal15 Feb 231.04 Yr.
Nirman Morakhia15 Feb 231.04 Yr.

Data below for HDFC Gold Fund as on 29 Feb 24

Asset Allocation
Asset ClassValue
Cash1.78%
Other98.22%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Gold ETF
- | -
100%₹1,696 Cr310,119,088
↑ 1,703,944
Treps - Tri-Party Repo
CBLO/Reverse Repo | -
0%₹1 Cr
Net Current Assets
Net Current Assets | -
0%-₹1 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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