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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 2022
Some of the best underlying Gold ETFs to Invest are as follows:
The investment objective of the Scheme will be to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI GOLD ETF). IDBI Gold Fund is a Gold - Gold fund was launched on 14 Aug 12. It is a fund with Moderately High risk and has given a Below is the key information for IDBI 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 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 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 ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF).
However, there can be no assurance that the investment objectives of the Scheme will be realized. ICICI Prudential Regular Gold Savings Fund is a Gold - Gold fund was launched on 11 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Regular Gold Savings Fund Returns up to 1 year are on 1. IDBI Gold Fund
CAGR/Annualized return of 3.3% since its launch. Return for 2021 was -4% , 2020 was 24.2% and 2019 was 21.6% . IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (04 Oct 22) ₹13.8964 ↑ 0.21 (1.55 %) Net Assets (Cr) ₹40 on 31 Aug 22 Category Gold - Gold AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 0.67 Sharpe Ratio 0.48 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹9,993 30 Sep 19 ₹12,270 30 Sep 20 ₹15,479 30 Sep 21 ₹14,267 30 Sep 22 ₹15,570 Returns for IDBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Oct 22 Duration Returns 1 Month 1.8% 3 Month -2% 6 Month -0.7% 1 Year 9.3% 3 Year 8.4% 5 Year 9.9% 10 Year 15 Year Since launch 3.3% Historical performance (Yearly) on absolute basis
Year Returns 2021 -4% 2020 24.2% 2019 21.6% 2018 5.8% 2017 1.4% 2016 8.3% 2015 -8.7% 2014 0.2% 2013 -14.5% 2012 Fund Manager information for IDBI Gold Fund
Name Since Tenure Khozem Jabalpurwala 1 Jul 22 0.17 Yr. Data below for IDBI Gold Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 0.98% Other 99.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity IDBI Gold ETF
- | -100% ₹40 Cr 85,488
↓ -235 Net Receivable / Payable
CBLO | -0% ₹0 Cr Treps
CBLO/Reverse Repo | -0% ₹0 Cr 2. SBI Gold Fund
CAGR/Annualized return of 4.1% since its launch. Return for 2021 was -5.7% , 2020 was 27.4% and 2019 was 22.8% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (04 Oct 22) ₹15.5841 ↑ 0.24 (1.59 %) Net Assets (Cr) ₹1,163 on 31 Aug 22 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.4 Sharpe Ratio 0.37 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 30 Sep 17 ₹10,000 30 Sep 18 ₹10,043 30 Sep 19 ₹12,314 30 Sep 20 ₹16,391 30 Sep 21 ₹14,801 30 Sep 22 ₹16,003 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Oct 22 Duration Returns 1 Month 1.6% 3 Month -1.6% 6 Month -0.3% 1 Year 9.3% 3 Year 9.3% 5 Year 10.4% 10 Year 15 Year Since launch 4.1% Historical performance (Yearly) on absolute basis
Year Returns 2021 -5.7% 2020 27.4% 2019 22.8% 2018 6.4% 2017 3.5% 2016 10% 2015 -8.1% 2014 -10.2% 2013 -6.6% 2012 10.9% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 10.98 Yr. Data below for SBI Gold Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 1.55% Other 98.45% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹1,165 Cr 258,975,789
↓ -2,742,977 Net Receivable / Payable
Net Current Assets | -1% -₹6 Cr Treps
CBLO/Reverse Repo | -0% ₹4 Cr 3. HDFC Gold Fund
CAGR/Annualized return of 4.4% since its launch. Return for 2021 was -5.5% , 2020 was 27.5% and 2019 was 21.7% . HDFC Gold Fund
Growth Launch Date 24 Oct 11 NAV (04 Oct 22) ₹16.0069 ↑ 0.31 (1.96 %) Net Assets (Cr) ₹1,359 on 31 Aug 22 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.57 Sharpe Ratio 0.38 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 30 Sep 17 ₹10,000 30 Sep 18 ₹10,071 30 Sep 19 ₹12,271 30 Sep 20 ₹16,369 30 Sep 21 ₹14,697 30 Sep 22 ₹15,904 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Oct 22 Duration Returns 1 Month 1.4% 3 Month -1.6% 6 Month -1% 1 Year 9.2% 3 Year 9.1% 5 Year 10.3% 10 Year 15 Year Since launch 4.4% Historical performance (Yearly) on absolute basis
Year Returns 2021 -5.5% 2020 27.5% 2019 21.7% 2018 6.6% 2017 2.8% 2016 10.1% 2015 -7.3% 2014 -9.8% 2013 -7.2% 2012 12% Fund Manager information for HDFC Gold Fund
Name Since Tenure Krishan Daga 19 Oct 15 6.87 Yr. Data below for HDFC Gold Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 2.18% Other 97.82% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹1,358 Cr 300,840,000
↓ -1,320,000 Net Current Assets
Net Current Assets | -0% -₹2 Cr Reverse Repo
CBLO/Reverse Repo | -0% ₹2 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹1 Cr 4. Axis Gold Fund
CAGR/Annualized return of 4.1% since its launch. Return for 2021 was -4.7% , 2020 was 26.9% and 2019 was 23.1% . Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (04 Oct 22) ₹15.5932 ↑ 0.27 (1.75 %) Net Assets (Cr) ₹263 on 31 Aug 22 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.3 Sharpe Ratio 0.39 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 30 Sep 17 ₹10,000 30 Sep 18 ₹10,208 30 Sep 19 ₹12,470 30 Sep 20 ₹16,624 30 Sep 21 ₹15,081 30 Sep 22 ₹16,320 Returns for Axis Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Oct 22 Duration Returns 1 Month 1% 3 Month -1.8% 6 Month 0% 1 Year 9.2% 3 Year 9.6% 5 Year 11.1% 10 Year 15 Year Since launch 4.1% Historical performance (Yearly) on absolute basis
Year Returns 2021 -4.7% 2020 26.9% 2019 23.1% 2018 8.3% 2017 0.7% 2016 10.7% 2015 -11.9% 2014 -11.4% 2013 -7.5% 2012 10.9% Fund Manager information for Axis Gold Fund
Name Since Tenure Aditya Pagaria 9 Nov 21 0.81 Yr. Data below for Axis Gold Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 3.03% Other 96.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | -99% ₹260 Cr 59,300,000
↑ 200,000 Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -1% ₹3 Cr Net Receivables / (Payables)
Net Current Assets | -0% -₹1 Cr 5. ICICI Prudential Regular Gold Savings Fund
CAGR/Annualized return of 4.7% since its launch. Return for 2021 was -5.4% , 2020 was 26.6% and 2019 was 22.7% . ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (04 Oct 22) ₹16.5398 ↑ 0.27 (1.69 %) Net Assets (Cr) ₹696 on 31 Aug 22 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.33 Sharpe Ratio 0.43 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Months (2%),15 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹10,232 30 Sep 19 ₹12,430 30 Sep 20 ₹16,396 30 Sep 21 ₹14,813 30 Sep 22 ₹15,992 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Oct 22 Duration Returns 1 Month 1.2% 3 Month -1.5% 6 Month -0.8% 1 Year 9% 3 Year 9.1% 5 Year 10.3% 10 Year 15 Year Since launch 4.7% Historical performance (Yearly) on absolute basis
Year Returns 2021 -5.4% 2020 26.6% 2019 22.7% 2018 7.4% 2017 0.8% 2016 8.9% 2015 -5.1% 2014 -9.2% 2013 -6.7% 2012 11.2% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 9.93 Yr. Nishit Patel 29 Dec 20 1.67 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 31 Aug 22
Asset Allocation
Asset Class Value Cash 2.12% Other 97.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹696 Cr 154,205,847
↑ 1,590,110 Net Current Assets
Net Current Assets | -0% -₹3 Cr Treps
CBLO/Reverse Repo | -0% ₹3 Cr
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