Outlook Money
Gold Exchange-Traded Funds (ETFs) offer investors liquidity and gold's intrinsic value, helping them to diversify their investment portfolio.
Gold ETFs offer investors convenience as there is no storage or delivery hassles, and gains from gold's price movements.
Gold ETFs are backed by 99.5 percent purity gold bars.
Gold ETFs are traded on BSE & NSE stock exchanges, but you will need a broker and a demat account to trade.
Gold ETFs offer fractional ownership of the yellow metal compared to physical gold, besides flexibility, liquidity.
Gold ETFs act as a hedge against market volatility because of their liquidity, efficiency, and diversification.
Investing in Gold ETFs requires knowledge of expense ratios, tracking errors, market conditions, security, and physical gold holdings.
Gold ETFs can be redeemed in the form of physical gold, allowing investors to capitalise on gold price movements.
Compiled by Himani Verma