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E-Gold Vs Gold ETFs- Which is a Better Option?
E-Gold Vs Gold ETFs? Which is a better Gold Investment option? Which avenue has a higher yield? These are some of the common questions often asked by an investor wanting to invest in these non-physical form of gold. Well, both the forms are unique in trading with each having its own benefits in essential parameters like returns, taxation, holding period, etc. Therefore, we will see how both- Gold ETFs and E-Gold differ from each other and which form makes a better gold investment option!
E- Gold
E-Gold is a unique gold investment product launched by the National Spot Exchange Limited (NSEL). This product enables investors to Buy Gold in an electronic form on the NSE’s trading platform and the gold bought by you will reflect in your Demat account.
E-Gold is one such investment that allows investors to buy gold in a smaller denomination, such as 1gm, 2gm, 3gm, etc. The gold units that you would buy here will be credited to your Demat account in T+2 days. Similarly, for instance, if you have sold today, the same will debited from your Demat account in 2 days (from the date of sale).
E-gold is less expensive compared to gold ETFs as the latter is exposed to various charges like asset management fees, security service fees, etc. To know the current value of your investment in gold ETFs, you have to track the NAV of that fund but in the case of e-gold, the value is that of the prevailing gold price.
Gold ETFs
Gold ETFs has become one of the most popular modes of gold investments. Gold ETFs are also the underlying of open-ended Gold Mutual Funds that help you to invest your money in gold. The underlying gold purity is 99.5%. Gold ETFs are also known as paper gold. These are listed and traded on major stock exchanges and investors are assigned units where each unit usually represents one gram of gold.
In gold ETFs, investors can trade in their existing Demat account. Gold ETFs offers investors a secure way to access the gold market. They also provide the benefit of liquidity as it can be traded at any time during the trading period.
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E-Gold Vs Gold ETFs: Know the Key Differences
Trading Time
Gold ETFs can be traded only between 9:00 am to 3:30 pm on weekdays. Whereas, e-gold can be traded from 10:00 am to 11:30 pm on weekdays.
Conversion to Physical Form
Both the forms can be converted into physical gold, but the minimum quantity for each varies. The minimum quantity for e-gold is 8 grams, while, in gold-ETF, one can convert only when it exceeds a certain size of 500gm to 1Kg.
E-Gold is the Most Cost
Efficient form and is able to trace gold prices more closely than gold ETFs. However, e-gold loses out to gold ETFs when it comes to taxation.
But, now, when you know the key difference between these two forms, invest in an avenue that offers secure investment with better returns!
| Parameters | Gold ETFs | E-Gold |
|---|---|---|
| Separate Demat Account | No | Yes |
| Holdings | Owned by AMCs | Yes |
| Conversion to Physical Gold | Minimum 0.5-1 kg | Investors directly hold gold units in demat account |
| Short Term Capital Gains | Less than 1 year- 20% tax on returns | Less than 3 years- 20% tax on returns |
| Long Term Capital Gains | After 1 year- 10% tax returns | After 3 years- 10% tax on returns |
| Recurring Expenses | 0.40% | 1% |
| Returns | Highest at it's the most cost-effective | Slightly lower than gold ETF |
| Pricing | Linked to International Gold Price | Linked to Indian Gold Price |
| Convert to Jewelry | Not available | Available with selected Jewellers |
Best Gold ETFs to Invest 2020
Some of the best underlying Gold ETFs to Invest are as follows:
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 Below is the key information for Kotak 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 generate returns that closely correspond to returns generated by Axis Gold ETF. Axis Gold Fund is a Gold - Gold fund was launched on 20 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for Axis 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 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 1. Kotak Gold Fund
CAGR/Annualized return of 5.9% since its launch. Return for 2019 was 24.1% , 2018 was 7.3% and 2017 was 2.5% . Kotak Gold Fund
Growth Launch Date 25 Mar 11 NAV (24 Jan 20) ₹16.6619 ↑ 0.04 (0.22 %) Net Assets (Cr) ₹205 on 31 Dec 19 Category Gold - Gold AMC Kotak Mahindra Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.6 Sharpe Ratio 1.35 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.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹9,162 31 Dec 16 ₹10,098 31 Dec 17 ₹10,349 31 Dec 18 ₹11,100 31 Dec 19 ₹13,774 Returns for Kotak Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 4.1% 3 Month 3.3% 6 Month 15.3% 1 Year 24.4% 3 Year 10.5% 5 Year 6% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 24.1% 2017 7.3% 2016 2.5% 2015 10.2% 2014 -8.4% 2013 -10% 2012 -7.7% 2011 10.9% 2010 2009 Fund Manager information for Kotak Gold Fund
Name Since Tenure Abhishek Bisen 25 Mar 11 8.69 Yr. Data below for Kotak Gold Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 2.28% Other 97.72% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Gold ETF
- | KOTAKGOLDE98% ₹190 Cr 5,687,375
↑ 122,885 Triparty Repo
CBLO/Reverse Repo | -2% ₹3 Cr Net Current Assets/(Liabilities)
Net Current Assets | -0% ₹1 Cr 2. Nippon India Gold Savings Fund
CAGR/Annualized return of 5.9% since its launch. Return for 2019 was 22.5% , 2018 was 6% and 2017 was 1.7% . Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (24 Jan 20) ₹16.6644 ↑ 0.09 (0.54 %) Net Assets (Cr) ₹755 on 31 Dec 19 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.63 Sharpe Ratio 1.29 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 31 Dec 14 ₹10,000 31 Dec 15 ₹9,187 31 Dec 16 ₹10,257 31 Dec 17 ₹10,436 31 Dec 18 ₹11,059 31 Dec 19 ₹13,544 Returns for Nippon India Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 4.9% 3 Month 5% 6 Month 14.7% 1 Year 23.4% 3 Year 9.3% 5 Year 5.8% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 22.5% 2017 6% 2016 1.7% 2015 11.6% 2014 -8.1% 2013 -9.8% 2012 -7.6% 2011 11.2% 2010 2009 Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Mehul Dama 6 Nov 18 1.15 Yr. Data below for Nippon India Gold Savings Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 0.42% Other 99.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | GOLDBEES100% ₹734 Cr 2,196,058 Reverse Repo
CBLO/Reverse Repo | -0% ₹3 Cr Net Current Assets
Net Current Assets | -0% -₹2 Cr Cash Margin - Ccil
Receivables | -0% ₹0 Cr 3. Axis Gold Fund
CAGR/Annualized return of 2.7% since its launch. Return for 2019 was 23.1% , 2018 was 8.3% and 2017 was 0.7% . Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (24 Jan 20) ₹12.4298 ↓ 0.00 (-0.02 %) Net Assets (Cr) ₹58 on 31 Dec 19 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.72 Sharpe Ratio 1.29 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹8,814 31 Dec 16 ₹9,757 31 Dec 17 ₹9,826 31 Dec 18 ₹10,642 31 Dec 19 ₹13,096 Returns for Axis Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 3.9% 3 Month 4.5% 6 Month 14.1% 1 Year 23.4% 3 Year 9.6% 5 Year 4.9% 10 Year 15 Year Since launch 2.7% Historical performance (Yearly) on absolute basis
Year Returns 2018 23.1% 2017 8.3% 2016 0.7% 2015 10.7% 2014 -11.9% 2013 -11.4% 2012 -7.5% 2011 10.9% 2010 2009 Fund Manager information for Axis Gold Fund
Name Since Tenure Devang Shah 7 Jun 16 3.48 Yr. Data below for Axis Gold Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 3.32% Other 96.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | AXISGOLDEQ98% ₹55 Cr 164,000 Clearing Corporation Of India Ltd
CBLO | -3% ₹1 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr 4. SBI Gold Fund
CAGR/Annualized return of 2.7% since its launch. Return for 2019 was 22.8% , 2018 was 6.4% and 2017 was 3.5% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (24 Jan 20) ₹12.5311 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹397 on 31 Dec 19 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.43 Sharpe Ratio 1.33 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 31 Dec 14 ₹10,000 31 Dec 15 ₹9,186 31 Dec 16 ₹10,104 31 Dec 17 ₹10,456 31 Dec 18 ₹11,128 31 Dec 19 ₹13,668 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 4.3% 3 Month 4.2% 6 Month 14.8% 1 Year 23.2% 3 Year 9.9% 5 Year 5.9% 10 Year 15 Year Since launch 2.7% Historical performance (Yearly) on absolute basis
Year Returns 2018 22.8% 2017 6.4% 2016 3.5% 2015 10% 2014 -8.1% 2013 -10.2% 2012 -6.6% 2011 10.9% 2010 2009 Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 8.22 Yr. Data below for SBI Gold Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 0.05% Other 99.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI ETF Gold
- | SETFGOLD100% ₹384 Cr 1,123,142
↑ 5,920 Treps
CBLO/Reverse Repo | -0% ₹1 Cr Net Receivable / Payable
Net Current Assets | -0% -₹1 Cr 5. Aditya Birla Sun Life Gold Fund
CAGR/Annualized return of 2.9% since its launch. Return for 2019 was 21.3% , 2018 was 6.8% and 2017 was 1.6% . Aditya Birla Sun Life Gold Fund
Growth Launch Date 20 Mar 12 NAV (24 Jan 20) ₹12.5581 ↓ -0.12 (-0.91 %) Net Assets (Cr) ₹76 on 31 Dec 19 Category Gold - Gold AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 1.27 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.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹9,278 31 Dec 16 ₹10,346 31 Dec 17 ₹10,511 31 Dec 18 ₹11,229 31 Dec 19 ₹13,625 Returns for Aditya Birla Sun Life Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 3.9% 3 Month 3.4% 6 Month 12.6% 1 Year 23% 3 Year 8.7% 5 Year 5.9% 10 Year 15 Year Since launch 2.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 21.3% 2017 6.8% 2016 1.6% 2015 11.5% 2014 -7.2% 2013 -9.4% 2012 -6.9% 2011 2010 2009 Fund Manager information for Aditya Birla Sun Life Gold Fund
Name Since Tenure Lovelish Solanki 30 Jun 18 0.59 Yr. Data below for Aditya Birla Sun Life Gold Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 3.22% Other 96.78% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Gold ETF
- | 53340897% ₹71 Cr 203,000 Clearing Corporation Of India Limited
CBLO | -3% ₹2 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹0 Cr
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