Kotak Gold ETF Review

Kotak Gold ETF Review

Gold Exchange Traded Funds (ETfs) are the new concept in India. Gold ETFs collect money from literally tens of thousands of investors like you and me and invest in physical gold on behalf of us.

The main advantage of Gold ETF is that, there is not any issue of purity and security and as you don’t possess gold in the physical form, it doesn’t attract any wealth tax.

Kotak Gold ETF is India’s one of the leading Gold ETF Fund. The minimum investment in this fund is Rs.5000 and there is not any Entry or Exit loads.

1 unit of Kotak Gold ETF closely track the price of 1 gram of gold. And the annual fund expenses are maximum 1% which is really cheap.

If your sole purpose of buying a gold is the investment purpose than Kotak Gold ETF is for you. Since past few years, the gold has given excellent returns more than the equity.

And that’s why smart investors are diverted towards Gold ETFs. I also advise investors to invest at least 5% of their total portfolio net worth in gold for better returns.

However, remember that your gold allocation in your portfolio should not be more than 10% of your total portfolio net worth. The gold is a precious metal and its price is directly related to the US Monetary base (Money Supply).

And USA is in recession since 2007 and that’s why it is printing billions and trillions of dollars out of thin air like hell and that’s why it is advisable to invest in gold to maintain the purchasing power of your wealth.