Gold Benchmark ETF Fund Review

Gold Benchmark ETF Fund Review

Gold Benchmark Exchange Traded Fund is India’s first gold fund which is listed on NSE and BSE. The main advantage of Exchange traded funds is that, they are listed on the stock exchanges so they are more liquid.

Fund Objective:

The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold. The reason for performance variance of the scheme from that of domestic price of gold may be due to expense and other related factors.

Thus, the basic purpose of Gold Benchmark ETF is to buy a physical gold from the money of the investors and keep it in the safe custody for the future gains.

1 Unit of this fund closely track the price of 1 gram of gold. and minimum investment is Rs.10,000 in this fund.

See the 5 years Return of this Fund on Valueresearchonline.com

Advantages of Benchmark ETF -

The main advantage of Benchmark ETF is that, here you don’t have to buy any physical gold. So there is not any issue of purity and security of the gold.

Another advantage of this fund is that, as you don’t possess a physical gold with you, it won’t attract any wealth tax.

Which kind of Investors invest in Gold Benchmark ETF?

In India, people buy gold for two basic purposes. One is for jewellery and second is for investment purpose. Now, if your main aim to buy a gold is purely the investment purpose than this fund is for you. This is because if you are going to buy a gold only for investment purpose than it is better to buy it in paper form (Demt Gold) to avoid wealth tax and any issues of securities and purity.