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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 2024
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 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 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 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 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 1. IDBI Gold Fund
CAGR/Annualized return of 5.5% since its launch. Return for 2023 was 14.8% , 2022 was 12% and 2021 was -4% . IDBI Gold Fund
Growth Launch Date 14 Aug 12 NAV (25 Jul 24) ₹18.6121 ↓ -0.39 (-2.07 %) Net Assets (Cr) ₹55 on 30 Jun 24 Category Gold - Gold AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 0.55 Sharpe Ratio 1.25 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 Jun 19 ₹10,000 30 Jun 20 ₹13,732 30 Jun 21 ₹13,107 30 Jun 22 ₹14,075 30 Jun 23 ₹15,957 30 Jun 24 ₹19,632 Returns for IDBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Jul 24 Duration Returns 1 Month -0.5% 3 Month -1% 6 Month 14.1% 1 Year 18.6% 3 Year 13.2% 5 Year 13.5% 10 Year 15 Year Since launch 5.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 14.8% 2022 12% 2021 -4% 2020 24.2% 2019 21.6% 2018 5.8% 2017 1.4% 2016 8.3% 2015 -8.7% 2014 0.2% Fund Manager information for IDBI Gold Fund
Name Since Tenure Sumit Bhatnagar 1 Jun 24 0.08 Yr. Data below for IDBI Gold Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 1.16% Other 98.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity LIC MF Gold ETF
- | -100% ₹54 Cr 82,443
↑ 979 Treps
CBLO/Reverse Repo | -1% ₹1 Cr Net Receivables / (Payables)
Net Current Assets | -1% ₹0 Cr 2. HDFC Gold Fund
CAGR/Annualized return of 6.3% 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 (25 Jul 24) ₹21.7559 ↑ 0.03 (0.14 %) Net Assets (Cr) ₹2,072 on 30 Jun 24 Category Gold - Gold AMC HDFC Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.54 Sharpe Ratio 1.26 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 Jun 19 ₹10,000 30 Jun 20 ₹14,224 30 Jun 21 ₹13,509 30 Jun 22 ₹14,529 30 Jun 23 ₹16,328 30 Jun 24 ₹20,155 Returns for HDFC Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Jul 24 Duration Returns 1 Month -1.1% 3 Month -1% 6 Month 13.5% 1 Year 18.5% 3 Year 12.9% 5 Year 13.8% 10 Year 15 Year Since launch 6.3% 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 1.37 Yr. Nirman Morakhia 15 Feb 23 1.37 Yr. Data below for HDFC Gold Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 1.66% Other 98.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Gold ETF
- | -100% ₹2,071 Cr 329,199,812
↑ 6,015,282 Treps - Tri-Party Repo
CBLO/Reverse Repo | -0% ₹6 Cr Net Current Assets
Net Current Assets | -0% -₹5 Cr 3. Invesco India Gold Fund
CAGR/Annualized return of 5.9% 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 (25 Jul 24) ₹20.168 ↓ -0.38 (-1.86 %) Net Assets (Cr) ₹75 on 30 Jun 24 Category Gold - Gold AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 0.47 Sharpe Ratio 1.3 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 30 Jun 19 ₹10,000 30 Jun 20 ₹14,023 30 Jun 21 ₹13,463 30 Jun 22 ₹14,545 30 Jun 23 ₹16,304 30 Jun 24 ₹20,090 Returns for Invesco India Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Jul 24 Duration Returns 1 Month -1.3% 3 Month -1.6% 6 Month 13.1% 1 Year 18.2% 3 Year 13% 5 Year 13.9% 10 Year 15 Year Since launch 5.9% 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 4.49 Yr. Data below for Invesco India Gold Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 2.11% Other 97.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Gold ETF
- | -99% ₹74 Cr 116,123
↑ 621 Triparty Repo
CBLO/Reverse Repo | -1% ₹1 Cr Net Receivables / (Payables)
CBLO | -0% ₹0 Cr 4. SBI Gold Fund
CAGR/Annualized return of 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 (25 Jul 24) ₹21.2299 ↑ 0.07 (0.32 %) Net Assets (Cr) ₹1,885 on 30 Jun 24 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.24 Sharpe Ratio 1.23 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 Jun 19 ₹10,000 30 Jun 20 ₹14,269 30 Jun 21 ₹13,540 30 Jun 22 ₹14,662 30 Jun 23 ₹16,456 30 Jun 24 ₹20,242 Returns for SBI Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Jul 24 Duration Returns 1 Month -1.4% 3 Month -1.6% 6 Month 12.9% 1 Year 18% 3 Year 12.9% 5 Year 14.1% 10 Year 15 Year Since launch 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 12.81 Yr. Data below for SBI Gold Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 1.52% Other 98.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹1,884 Cr 301,293,001
↑ 4,775,526 Treps
CBLO/Reverse Repo | -0% ₹7 Cr Net Receivable / Payable
CBLO | -0% -₹6 Cr 5. Axis Gold Fund
CAGR/Annualized return of 6% since its launch. Return for 2023 was 14.7% , 2022 was 12.5% and 2021 was -4.7% . Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (25 Jul 24) ₹21.8744 ↑ 0.72 (3.39 %) Net Assets (Cr) ₹501 on 30 Jun 24 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.27 Sharpe Ratio 1.27 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 Jun 19 ₹10,000 30 Jun 20 ₹14,264 30 Jun 21 ₹13,618 30 Jun 22 ₹14,734 30 Jun 23 ₹16,583 30 Jun 24 ₹20,371 Returns for Axis Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Jul 24 Duration Returns 1 Month -1.4% 3 Month -1.4% 6 Month 13% 1 Year 17.7% 3 Year 13% 5 Year 14.2% 10 Year 15 Year Since launch 6% Historical performance (Yearly) on absolute basis
Year Returns 2023 14.7% 2022 12.5% 2021 -4.7% 2020 26.9% 2019 23.1% 2018 8.3% 2017 0.7% 2016 10.7% 2015 -11.9% 2014 -11.4% Fund Manager information for Axis Gold Fund
Name Since Tenure Aditya Pagaria 9 Nov 21 2.64 Yr. Data below for Axis Gold Fund as on 30 Jun 24
Asset Allocation
Asset Class Value Cash 3.85% Other 96.15% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | -98% ₹491 Cr 80,404,490
↑ 1,248,062 Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -2% ₹10 Cr Net Receivables / (Payables)
Net Current Assets | -0% -₹1 Cr
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