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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 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.
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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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.
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.
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).
If you want, you can take physical delivery of gold at any time by redeeming e-gold units to your Demat account.
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.
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.
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.
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 Below is the key information for Invesco India Gold Fund Returns up to 1 year are on 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 Below is the key information for Aditya Birla Sun Life Gold Fund Returns up to 1 year are on 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 Below is the key information for SBI Gold Fund Returns up to 1 year are on 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 Below is the key information for Nippon India Gold Savings Fund Returns up to 1 year are on 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 Below is the key information for HDFC Gold Fund Returns up to 1 year are on 1. Invesco India Gold Fund
CAGR/Annualized
return of 5.5% since its launch. Return for 2023 was 14.5% , 2022 was 12.8% and 2021 was -5.5% . 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.
Date Value 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 Returns for Invesco India Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 27 Mar 24 Duration Returns 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
Year Returns 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
Name Since Tenure Krishna Cheemalapati 4 Jan 20 4.16 Yr. Data below for Invesco India Gold Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 2.15% Other 97.85% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Gold ETF
- | -100% ₹62 Cr 113,043 Triparty Repo
CBLO/Reverse Repo | -1% ₹0 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr 2. Aditya Birla Sun Life Gold Fund
CAGR/Annualized
return of 5.8% since its launch. Return for 2023 was 14.5% , 2022 was 12.3% and 2021 was -5% . 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.
Date Value 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 Returns for Aditya Birla Sun Life Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 27 Mar 24 Duration Returns 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
Year Returns 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
Name Since Tenure Pranav Gupta 31 Mar 23 0.92 Yr. Haresh Mehta 28 Apr 23 0.84 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 3.53% Other 96.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | -99% ₹291 Cr 52,257,587
↑ 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
CAGR/Annualized
return of 5.6% since its launch. Return for 2023 was 14.1% , 2022 was 12.6% and 2021 was -5.7% . 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.
Date Value 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 Returns for SBI Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 27 Mar 24 Duration Returns 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
Year Returns 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
Name Since Tenure Raviprakash Sharma 12 Sep 11 12.48 Yr. Data below for SBI Gold Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 1.52% Other 98.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹1,507 Cr 277,817,928
↓ -1,343,218 Treps
CBLO/Reverse Repo | -0% ₹3 Cr Net Receivable / Payable
CBLO | -0% -₹3 Cr 4. Nippon India Gold Savings Fund
CAGR/Annualized
return of 7.6% since its launch. Return for 2023 was 14.3% , 2022 was 12.3% and 2021 was -5.5% . 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.
Date Value 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 Returns for Nippon India Gold Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 27 Mar 24 Duration Returns 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
Year Returns 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
Name Since Tenure Himanshu Mange 23 Dec 23 0.19 Yr. Data below for Nippon India Gold Savings Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 1.24% Other 98.76% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹1,589 Cr 301,090,489
↑ 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
CAGR/Annualized
return of 6% since its launch. Return for 2023 was 14.1% , 2022 was 12.7% and 2021 was -5.5% . 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.
Date Value 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 Returns for HDFC Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 27 Mar 24 Duration Returns 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
Year Returns 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
Name Since Tenure Arun Agarwal 15 Feb 23 1.04 Yr. Nirman Morakhia 15 Feb 23 1.04 Yr. Data below for HDFC Gold Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 1.78% Other 98.22% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹1,696 Cr 310,119,088
↑ 1,703,944 Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹1 Cr Net Current Assets
Net Current Assets | -0% -₹1 Cr
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