Category: Investing

Gold ETF vs Gold Mutual Fund: Differences and Similarities

Equity markets have a history of being highly volatile during periods of adverse geopolitical events, unfavorable economic conditions, etc., due to which every investor prefers to allocate some portion of their portfolio to Gold as it is considered a safe haven. There are various modes through which one can invest in digital Gold. The two most popular options to invest in gold are Gold ETFs and Gold Mutual Funds.

In this blog, we will give you an overview of both Gold Mutual Fund and Gold ETFs, along with their similarities and differences.

Key Differences Between Gold Mutual Fund and Gold ETFs

The major difference between Gold Mutual Fund and Gold ETFs is as follows:

Particular	Gold Mutual Fund	Gold ETF
Mode	It can be purchased through Asset Management Companies, online platforms, etc.	It can be easily bought and sold on the stock exchange.
Demat Account	A Demat account is not required to invest in the Gold Mutual Fund.	It is mandatory to have a demat account for investment in a Gold ETF.
Expenses	It generally has a high expense ratio as it includes the charges of both the ETF and mutual fund’s expense ratio.	It typically has a lower expense ratio than the Gold Mutual Fund.
Price	The price of the Gold Mutual Fund is adjusted at the end of the day and is known as NAV.	The prices of Gold ETFs can be tracked in real-time during trading hours.
Investment Timing	Investment can be made at any time during the day.	Investment and redemption can be done during the trading hours only.
Exit Load	Some Gold Mutual Funds may have an exit load, which is decided by the AMC.	There is no exit load applicable in the Gold ETF.

Similarities Between the Gold Mutual Fund and the Gold ETF

There are various similarities between Gold Mutual Fund and Gold ETF; a few of such similarities are mentioned below:

Investment in Gold: Both Gold ETF and Gold Mutual Funds invest the amount in physical Gold directly or indirectly through exchange-traded derivatives. Their returns are dependent on how the domestic gold prices have performed.
Zero Risk: Investing in both Gold ETFS and Gold Mutual Funds offers peace of mind as here is no risk of theft or storage costs.
Tax Treatment: Both the Gold Mutual Fund and the Gold ETF are taxed in the same manner.
High Liquidity: Gold ETFs and Gold Mutual Funds are highly liquid and can be converted easily into cash.
Well Regulated: Both investment options are well regulated by the Securities and Exchange Board of India (SEBI).

What is a Gold Mutual Fund?

Gold Mutual Fund is a type of mutual fund that collects money from the general public, and the fund managers invest the accumulated amount into gold, gold-related assets, and gold ETFs to generate returns similar to gold. It is a type of open-ended fund in which anyone can invest and withdraw money at any point in time. If investors do not have a demat account, they can invest in the Gold Mutual Fund and can earn returns similar to those of physical gold.

Features of the Gold Mutual Fund

The significant features of the Gold Mutual Fund are as follows:

Portfolio Diversification: One can easily diversify their portfolio through gold mutual funds.
No Demat Account: You can invest in Gold mutual funds even if you do not have a demat account.
Net Asset Value: In a Gold mutual fund, you can invest based on their daily NAV, which is updated at the end of each trading day.
SIPs: One can easily invest in Gold mutual funds through monthly SIPs.

What is a Gold ETF?

Gold ETF or Gold Exchange Traded Fund is an investment option which allows an investor to invest in ETF units that tracks the domestic price of physical gold. As gold ETF tracks the performance of physical gold, its returns are similar to that of physical gold. Gold ETFs can be easily bought and sold on the stock exchange like any other ordinary share. There is another term which is very famous among investors: Gold BEES, which is one of the oldest and well-known Gold ETFs in India. It was launched on 8 March 2007 and is managed by Nippon India Mutual Fund.

Features of Gold ETF

The key features of Gold ETF are:

Physical Gold: The Gold ETF is backed by physical gold; hence ensures that investors get returns similar to that of physical gold.
Exchange Traded: The ETFs are traded on the stock exchange, like any other share, which means you can easily buy and sell the units of the Gold ETF during the trading session.
Low Cost: Investors in gold ETF only incur a nominal expense ratio and do not incur storage costs or risk of theft associated with owning physical gold.
Demat Account: To invest in Gold ETF, you must have a demat and trading account with a stockbroker which facilitates the buying and selling of Gold ETF.

Which one is Better for You?

If you do not wish to have a demat and trading account, then you can easily invest in a Gold Mutual Fund. It does not require constant monitoring and regular investments can be made using SIP, etc. However, it carries higher expense ratios and exit loads as compared to Gold ETFs. On the other hand, if you want to actively track, buy and sell, then you can easily invest in a Gold ETF. To invest in Gold ETF, you are required to open a trading and demat account where you can hold Gold ETFs. Both of the options are equally good for all types of investors; choosing among them depends on individuals’ preferences and choices.

Conclusion

On a concluding note, Gold ETFs and Gold Mutual Funds are suitable for investors who wish to invest in digital Gold. Those who prefer to invest in Gold through a Demat account can opt for investing in a Gold ETF, and those who don’t have a Demat account can invest in a Gold Mutual Fund. Both of these are backed by physical Gold and their returns depend on the domestic price of Gold. It is advisable to consult your investment advisor before making any investment in Gold.

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3	ETF vs Index Fund: Key Differences You Must Know
4	How to Invest in ETFs in India – A Beginner’s Guide
5	What is Nifty BeES ETF? Features, Benefits & How to Invest?

Frequently Asked Questions (FAQS)

Which has a lower expense ratio between the Gold ETF and the Gold Mutual Fund?
Gold ETFs generally have a lower expense ratio when compared to Gold Mutual Funds, as it has additional costs such as fund management fees along with the charges of its underlying Gold ETFs.
Is a demat account required to invest in the Gold Mutual Fund?
No, a demat account is not required to invest in the Gold Mutual Fund, however, it is mandatory to have a demat and trading account if you wish to invest in Gold ETF.
Are the returns of both the Gold Mutual Fund and the Gold ETF similar to the returns of physical Gold?
The returns of both the Gold Mutual Fund and the Gold ETF may vary slightly from the return of physical gold because of tracking error.
Is it safe to invest in a Gold ETF and a Gold Mutual Fund?
Yes, investment in Gold ETF and Gold Mutual Fund can be considered safe, as both of them are regulated by the Securities and Exchange Board of India (SEBI).
What is the major difference between a Gold ETF and a Gold Mutual Fund?
A Gold ETF can be traded on the stock exchange and requires a Demat account to invest, whereas investing in Gold mutual funds can be done through asset management companies.

May 29, 2025

How to Invest in Gold ETF – Benefits, Risks and Charges

For centuries, Gold has been considered an auspicious metal in India; whereas, in other countries of the world, it is primarily viewed as an investment option. In India, typically, people invest in physical Gold and purchase jewellery. But do you know, there are other investment options such as Gold ETF, which is a digital form of Gold that you can also hold in electronic form and is backed by physical gold.

In this blog, we will explain to you how to invest in Gold Exchange Traded Fund, along with the features and benefits.

What is a Gold ETF?

Gold ETF, also known as Gold Exchange Traded Fund, is a type of investment tool that tracks the price of physical Gold in the domestic market. It is a passive investment option whose performance depends on the Gold prices. By investing in Gold ETFs, an investor can have ownership in the physical Gold. They are traded like any other stock on a real-time basis. Gold ETFs are held in a dematerialised form in the demat account of the investor.

How to Buy Gold ETF in India

Investing in a Gold ETF is very easy nowadays. An investor is required to follow the steps mentioned below:

Visit the Website of Pocketful: An investor is required to visit the website of Pocketful and click on the Open Demat Account tab.
Open a Demat Account: On the page, you are required to fill in your details and submit all the required documents.
Login: Once your demat and trading account is opened successfully, you are required to log in to the trading application provided by Pocketful and transfer funds needed to purchase Gold ETFs
Choose a Gold ETF and Place Buy order: There are multiple Gold ETFs offered by various fund houses. Evaluate all the ETFs on various parameters such as tracking error, expense ratio, etc. After choosing the Gold ETF of your choice you can place a buy order with the number of units depending upon investment amount.
Review: Regular tracking of your portfolio is required to monitor the performance of your Gold ETF.

Features of Gold ETF

The key features of Gold ETFs are as follows:

Physical Gold: The Gold ETFs are backed by physical Gold, which causes their performance to match with returns of physical gold.
Real-Time Trade: The ETFs are traded in real time, hence, an investor can buy and sell the ETFs during the trading hours.
No Physical Storage: In the case of physical Gold, there is a storage cost, and in an ETF there is no need for physical storage and thus no risk of theft.
Transparency: ETF reflects the real-time prices of physical Gold; hence, it is easy for an investor to track the movement of the ETF.

Benefits of Investing in Gold ETF

The significant benefits of investing in Gold ETFs are as follows:

Liquidity: Gold ETFs can be bought and sold on the stock exchange anytime during the trading hours; therefore, they provide higher liquidity than physical Gold.
Cost Effective: If you wish to invest in physical Gold, there will be various charges, including GST, etc. However, in the case of the Gold ETF, there are no such charges and investors must only pay a nominal expense ratio.
Safety: If you are investing in a Gold ETF, there will be no risk of theft and physical storage costs, as you can hold it in electronic form.
Purity: Investment in Gold ETFs are backed by physical Gold having a purity of 99.5%; therefore investors are assured that they are investing in high-quality Gold.

Risk of Investing in Gold ETF

There are several risks associated with investing in Gold ETFs, which are as follows:

Volatility: The prices of Gold ETFs fluctuate very rapidly based on the market price of physical Gold, which are influenced by various factors such as economic conditions, foreign currency fluctuations and geopolitical events.
Tracking Error: Because of expenses, operational inefficiencies, etc., the returns of Gold ETFs can slightly vary from those of physical Gold.
Demat Charges: The Demat Account, which is mandatory to invest in Gold ETF, involves annual maintenance charges which are to be borne by the investor.
Intangible: The Gold ETFs are intangible in nature, therefore it does not provide mental peace of owning physical Gold.

Gold ETF vs Physical Gold

The difference between Gold ETF and Physical Gold is as follows:

Particulars	Gold ETF	Physical Gold
Holding	Gold ETFs are held in electronic form in your demat account.	They are held in physical or tangible form.
Safety	They are comparatively safer than physical Gold as they are held in electronic form.	There is always a risk of theft, or damage to physical Gold.
Liquidity	They are highly liquid as they can be sold at any time during trading hours on the stock exchange.	The liquidity of physical Gold depends on the availability of buyers and sellers.
Charges	Investing in Gold ETFs requires investors to pay fees known as expense ratio.	Buying physical Gold attracts GST and other making charges in the case of jewelry.
Storage Cost	It requires no storage cost.	Physical Gold is usually stored in bank lockers, which attract additional charges.

Conclusion

On a concluding note, if you wish to invest in Gold, there are various options available; however, people prefer to invest in physical Gold because Gold ETFs are not very popular among investors. There are significant benefits of investing in Gold ETFs when compared to investment in physical Gold, such as it requires no storage cost, there is no risk of theft, etc., but for Gold ETF, you are required to have a demat account. It is advisable to consult your investment advisor before making any investment in Gold.

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1	Mutual Fund vs ETF. Are They Same Or Different?
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3	ETF vs Index Fund: Key Differences You Must Know
4	How to Invest in ETFs in India – A Beginner’s Guide
5	What is Nifty BeES ETF? Features, Benefits & How to Invest?

Frequently Asked Questions (FAQS)

Is it mandatory to have a demat account to invest in Gold ETFs?
Yes, having a demat and trading account is mandatory to invest in a Gold ETF.
Can I convert my Gold ETF units into physical Gold?
No, it is not possible to convert your Gold ETF units into physical Gold. For this, you can sell your Gold ETF and purchase the physical Gold from any jewellery shop.
How can I start investing in a Gold ETF?
Open a demat account with Pocketful and then search for the gold ETF you want to invest in. Enter quantity and price and click on buy.
Where does the Gold ETF invest my money?
Gold ETF invests your money in physical Gold having 99.9% purity.
What is the full form of Gold ETF?
The full form of Gold ETF is Gold Exchange Traded Fund.

May 29, 2025

Gold BeES vs Gold ETF: Meaning, How It Works, Taxation

Investing in gold has moved beyond buying jewellery or coins. Today, digital gold options are offering better choices to investors. Options like Gold BeES and Gold ETFs offer a smart, secure, and cost-effective way to invest in gold through the stock market.

So, if you are an investor looking to invest in gold, then you have just landed at the right place. This financial guide will share everything about Gold BeES vs Gold ETF in detail here.

Gold ETFs and Gold BeES: A Quick Comparison

Now that you have explored all the basic details linked to both the investment options, let us now explore a brief comparison of Gold BeES vs Gold ETFs here:

Aspect	Gold BeES	Gold ETFs
Category	Gold BeES is a specific gold exchange-traded fund offered by Nippon India Mutual Fund.	Gold ETFs refer to the broader category of gold-based exchange-traded funds offered by multiple fund houses.
Fund House	Managed only by Nippon India Mutual Fund.	Offered by various AMCs like HDFC, ICICI, Axis, Kotak, and more.
Unit Size	Each unit represents approximately 0.01 gram of gold with 99.5% purity.	Varies as it depends on the price of the ETF.
Liquidity	Highly liquid with a large daily traded volume.	Liquidity depends on the specific fund and its trading activity.
Expense Ratio	Fixed at 0.80%.	Varies between 0.32% to 0.78% depending on the AMC.
Tracking Error	Tracks domestic gold prices closely with low tracking error.	May show higher tracking error in some funds due to operational inefficiencies.
Taxation	Short-term gains (held for 12 months or less) are taxed as per income tax slab. Long-term gains (held for more than 12 months) are taxed at 12.5% without indexation.	The same tax rules apply – STCG as per income slab, LTCG at 12.5% without indexation.

Understanding Gold BeES

Gold BeES is an Exchange-Traded fund (ETF) that tracks the domestic price of gold by investing primarily in physical gold of 99.5% purity. They offer investors a way to gain exposure to gold price movements in a digital and secure format.

This means you can invest in gold without the need to buy or store physical gold. Gold BeES is an open-ended scheme, which does not have a maturity or lock-in period. It is listed and traded on stock exchanges like any other share.

So when you buy Gold BeES, you are investing in approximately 0.01 grams of gold, as it trades around ₹80 and the price of 10 gm of actual gold is around ₹90,000. This allows investors to start investing in gold with a small initial capital.

In India, Gold BeES is managed and offered by Nippon India Mutual Fund. It is the country’s first and most traded Gold ETF. The fund has been managed by Vikram Dhawan since 2022. The fund aims to provide returns that closely correspond to the domestic price of gold, before expenses. It is benchmarked against the domestic price of gold.

The further details of the Gold BeES that you should be aware of are as follows:

Date of Listing	8-Mar-2007
AUM (₹ Cr.)	20,783.15
Price	₹79.51
Expense Ratio	0.80%

(Details as on 28-May-2025)

Now that you know what Gold BeES means, let’s quickly understand its working here.

How Gold BeES Works?

When you invest in any asset, the first thing that you must understand properly is how it works and generates returns. By knowing this, you can ensure that your investment is not just done in the right direction, but also that you gain from your investments. So, here is the working of the Gold BeES:

Every unit of Gold BeES is approximately equal to 0.01 grams of physical gold with a 99.5% purity. The fund manager invests in physical gold and other exchange traded gold derivatives, tracking price movements and ensuring good returns.
ETFs offer their units to investors, which are then traded on the NSE or BSE to ensure transparency. You need a demat and a trading account for this.
The BeES tracks the price of gold quite closely and ensures alignment with price movements consistently, resulting in low tracking error.
Since there is no physical gold involved, the investor is freed from the worry of storing it.
With a price of around ₹80, Gold BeEs allows new investors to invest in gold without much capital.

Here is a quick table comparing the returns of the Gold BeES to those of physical gold to better check its performance.

	1 Year Return (%)	3 Years Return (%)	5 Years Return (%)	Since Inception Return (%)
Nippon India ETF Gold BeES	29.73	20.37	13.82	12.37
Price of Gold	31.31	21.65	14.95	13.47

(Details as on 28-May-2025)

So, the Gold BeES matches or tracks the movement of gold prices with returns equivalent to what the physical gold investment might offer you. This makes the scheme perfect for investors seeking to diversify their portfolio with gold.

Risks Associated with Gold BeES

Gold BeES faces the risk of gold price volatility. This means its value can fluctuate sharply based on various factors, including:

Global gold prices
Currency movements
Economic or political events.

Though this is a liquid asset, there might be chances that the liquidity will be negatively impacted during extreme market conditions. This will make it harder to buy or sell at your desired price. Tracking error can increase during volatile market conditions, causing the fund’s returns to deviate from actual gold returns due to fund expenses and operational inefficiencies.

There’s also fund manager risk, as the ETF’s performance depends on the AMC’s efficiency. Changes in tax laws or regulations could impact returns in the future.

Understanding Gold ETFs

To understand Gold ETFs vs. Gold BeES, you must first know what each stands for. So, now that you know the meaning of Gold BeES, let us explore the Gold ETFs here.

Gold ETFs are the exchange traded funds for the purpose of investment in gold. These are traded on stock exchanges and aim to track the price of physical gold. The primary features of these funds are as follows:

These are listed on stock exchanges like the NSE and the BSE for trading.
These are held electronically, so there is no hassle of storage.
The funds track the price of physical gold.
Gold ETFs are liquid in nature. This means you can easily buy or sell them on stock exchanges without any hassle.
The Gold EFTs involve no additional charges like making charges or storage costs, which makes them cost-efficient.
These are good from the taxation point of view when held for a long duration.
Investors can start with a small investment amount compared to investing in physical gold.
Many financial institutions accept Gold ETFs as collateral for loans.
There are no entry or exit load charges, making transactions cost-effective.
Statutory auditors regularly audit the holdings and purity of gold held by Gold ETFs to ensure transparency and trust.

How Gold ETFs Work?

Before you invest in Gold ETFs, you must understand how they work as well. So, the fund works in a very simple manner with the aim of offering returns to the investors. Here are the details of working:

These are traded on the stock exchanges during the trading hours. You can either buy or sell Gold ETF units based on your financial goals.
Each unit represents a specific quantity of physical gold that the ETF holds either physically or through exchange traded derivatives.
When you sell a unit, you get the cash amount equal to the physical gold value of that unit credited to your account.
You would need to pay taxes on the amount that you earn based on certain conditions.

Though there are various Gold ETFs available in India, it is important to know the top ones. So, here are the top-performing funds that you can invest in:

Fund Name	Inception Year	AUM (₹ Cr.)	Price (₹)	1 Year Return (%)	3 Year Return (%)	5 Year Return (%)	Expense Ratio (%)
Axis Gold ETF	2010	1,660.77	80.27	28.20	22.16	14.1	0.56
Birla Sun Life Gold ETF	2011	1184.63	84.57	27.85	22.06	13.92	0.47
HDFC Gold ETF	2010	9562.90	82.15	27.97	22.04	13.96	0.59
ICICI Prudential Gold Exchange Traded Fund	2010	7294.75	82.06	27.91	22.14	14.02	0.50
Invesco India Gold Exchange Traded Fund Ltd.	2010	277.77	8380.95	28.27	22.31	14.17	0.55
Kotak Gold Exchange Traded Fund	2007	7416.14	80.25	27.82	22.07	14.00	0.55
Quantum Gold Fund	2008	312.56	79.37	27.95	22.07	13.89	0.78
UTI Gold Exchange Traded Fund Ltd.	2007	1983.11	80.90	28.89	22.55	14.03	0.46

(Details as on 28-May-2025)

To further understand GoldBeES vs Gold ETF properly, let us now consider the taxation part.

Taxation of Gold ETFs and Gold BeES in India (2025)

When you invest in any asset, you must know the taxation part as well. This will ensure that you are managing your fund in the best manner and gaining the optimum outcome as well. So, when it comes to Gold BeES vs Gold ETF, the following will give you an idea of how the taxation works:

Type	Short-Term Capital Gains (≤12 months)	Long-Term Capital Gains (>12 months)	Indexation	Other Taxes
Gold BeES	As per the income tax slab	12.5% flat	No	No wealth tax, STT, VAT, or sales tax
Gold ETFs (all AMCs)	As per the income tax slab	12.5% flat	No	No wealth tax, STT, VAT, or sales tax

Risks Associated with Gold ETFs

Gold ETFs in India share similar risks to those of Gold BeES. They are highly sensitive to gold price volatility and macroeconomic factors. Liquidity risk can be higher in ETFs with lower trading volumes, making it difficult to exit at favorable prices.

Tracking error may be more pronounced in ETFs with higher expense ratios or less efficient fund management. The reputation and operational strength of the AMC matter; less established fund houses may carry higher risk. Like Gold BeES, all gold ETFs are subject to regulatory and taxation changes, which could affect their attractiveness or returns over time.

Who Should Invest in Gold BeES or Gold ETFs?

If you are looking to diversify your portfolio and want exposure to gold without dealing with physical storage or making charges, these options are ideal. Gold BeES and Gold ETFs are best suited for:

Long-term investors looking for a safe hedge against inflation or currency fluctuations.
Beginners who want to start small as Gold ETFs have low market prices, which allows even small investors to invest in gold.
People who want the flexibility to buy or sell gold easily and quickly through their trading account.

How to Invest in Gold BeES or Gold ETF Using Pocketful?

You can invest in Gold BeEs or Gold ETF using Pocketful by following the steps mentioned below:

Visit the Pocketful website, click on ‘Open Demat Account’ and complete your KYC with PAN, Aadhaar, and bank details.
After successful verification, your account will be opened and you will get login credentials on email.
Login into Pocketful’s mobile application, transfer funds and search for the Gold ETFs or Gold BeES that you wish to invest in.
Enter the number of units you want to buy click on buy.
Track your investment regularly on the Pocketful’s user-friendly mobile application under your portfolio section.

Conclusion

Gold BeES vs Gold ETFs offers you a comparison between two investment tools for anyone looking to invest in gold digitally. While Gold BeES is a specific ETF offered by Nippon India, Gold ETFs represent a broader range of ETFs offered by multiple AMCs.

Your choice among the two depends on your investment size, fund preference, and low tracking error. With platforms like Pocketful, investing in gold has never been easier or more accessible. Take your first step toward building a balanced portfolio by adding digital gold the smart way. However, it is advised to consult a financial advisor before investing.

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3	ETF vs Index Fund: Key Differences You Must Know
4	How to Invest in ETFs in India – A Beginner’s Guide
5	What is Nifty BeES ETF? Features, Benefits & How to Invest?

Frequently Asked Questions (FAQs)

Is Gold BeES the same as Gold ETF?
Gold BeES is similar to other Gold ETFs with one major difference that Gold BeEs is only offered by Nippon India Mutual Fund, whereas Gold ETFs are a broader category and are offered by various AMCs with different expense ratios.
Can I invest in Gold BeES without a demat account?
No. You need both a demat and a trading account to invest in Gold BeES or any Gold ETF, as these are traded on stock exchanges.
Which is better for beginners – Gold BeES or Gold ETFs?
Gold BeES is better for beginners due to its low price and low tracking error.
Are Gold ETFs and Gold BeES backed by physical gold?
Both invest in 99.5% pure physical gold and track domestic gold prices. Their value moves closely with the market price of gold.
How is tax calculated on Gold BeES and Gold ETFs?
If held for 12 months or less, gains are taxed as per your income tax slab. If held for more than 12 months, a flat 12.5% long-term capital gains tax applies.

May 29, 2025

ETF vs Stock – Which One is the Better Investment Option?

Investment decisions today require more thought than ever before. There are many options in the market, but the right choice depends on investment goals, risk tolerance, and current economic conditions. Recently, due to volatile market conditions, investors have been interested in building safe and diversified investment portfolios. In such an environment, it has become important to know which option, ETF or stock can prove to be better in the current times.

In this blog, we will compare ETF and stocks as investment options and decide on which one is best, along with their advantages and disadvantages.

What is an ETF?

ETFs or exchange-traded funds are investment instruments that represent a mix of shares of several companies, bonds or other assets. They can be bought and sold on the stock exchange like a common share. The biggest advantage of investing in an ETF is that it is diversified – that is, investments are made in several companies or sectors simultaneously, which reduces the risk. Apart from this, it is easier to trade as they can be bought and sold throughout the day in the stock market at market prices.

Know More: Calculate returns on ETF investments.

There are several types of ETFs, such as:

Equity ETF: which invests in stocks of several companies.
Debt ETF: which invests in government or corporate bonds.
Gold ETF: which tracks the price of gold
Sectoral/Thematic ETF: which invests in a specific sector (e.g. IT, banks)
International ETF: which tracks foreign markets.

ETFs can be a better option for long-term investors, especially when low risk and stable returns are preferred.

What is Stock?

Stocks are a part of the investment world that gives investors an opportunity to directly take a stake in a company. When an investor buys shares of a company, he becomes a small owner of that company. This ownership makes him a partner in the company’s profits, losses and other important decisions.

Investing in stocks has the potential to deliver good returns, but it also carries a higher risk, as a company’s financial performance can have a direct impact on the share price and thus your investment. Market movements, economic conditions and the company’s internal strategy can affect stock prices.

There are many types of stocks, such as:

Blue-Chip Stocks: Large, stable, and reliable companies
Mid-Cap and Small-Cap Stocks: Fast-growing but relatively more risky companies
Growth Stocks: Companies which have the potential for rapid expansion
Dividend Stocks: Companies which regularly distribute a share of profits with its shareholders.

With all these options, it is important to start wisely in the stock market.

ETF vs Stock: Key Differences

When it comes to ETFs vs Stocks, there are fundamental differences between the two investment options and selecting between the two is impacted by the investor’s experience, goals, and risk appetite. Here are some key differences between the two that can help you make a better decision:

Parameter	Exchange traded Fund (ETF)	Stocks
Diversification	The investment is divided among many companies, so ETFs are well-diversified.	Your investment performance is dependent on a single company’s financial performance, which keeps the risk more concentrated.
Risk and Volatility	ETFs are less volatile, especially index-based ETFs.	Depends on the performance of the company, hence volatility is high.
Management	Most ETFs are passive, which do not require much monitoring.	Research and tracking are important while investing in individual stocks.
Liquidity	ETFs have high liquidity.	Some Stocks are directly affected by the performance of the individual company.
Ownership	Buying an ETF gives you ownership of units of ETF, not of a specific company.	Buying stock gives you a direct stake in the company concerned.
Expenses and Fees	It has a small expense ratio and brokerages and transaction charges apply.	Brokerage and transaction fees are charged.
Voting Rights	ETF holders generally do not have voting rights in companies.	Stockholders have the right to vote on company decisions.

It is clear from this comparison that both stocks and ETFs have their own strengths and limitations. While ETFs are about instant diversification, stocks offer the potential for higher returns.

Pros and Cons of Investing in ETFs

Pros of ETF	Cons of ETF
Having multiple stocks in a single ETF provides diversification, which reduces risk.	The potential for high returns is limited.
Low expense ratios, making them especially beneficial for passive investors.	The investor does not have complete control to decide which stocks to include.
A good option for the long term as there is no need for constant buying, selling and research.	Some thematic or sector ETFs may be more volatile.
Easy way to invest in international markets, gold, bonds etc.	Less popular ETFs may have higher buy-sell spreads, which increases costs.

Pros and Cons of Investing in Stocks

Pros of Stock	Cons of Stock
Investing in the right company can provide good returns in the long term.	Poor performance of the company may result in a sharp decline in the value of the investment.
Shareholders get ownership and voting rights in the company.	The risk is higher compared to ETFs because there is less diversification.
There is a possibility of getting returns from both dividends and capital gains.	Company reports, market and sector information have to be constantly monitored.
You have complete control over your investments in stocks, buy or sell whenever you want.	Price volatility is high, which may cause stress or confusion among new investors.

Stocks or ETFs: Which is Better?

Which is better between ETFs vs Stocks depends entirely on the investor’s preferences and strategy. If your investment goal is stable growth and low risk over the long term, ETFs are the preferred investment option. They offer instant diversification at low cost, which is beneficial for beginner investors.

On the other hand, if an investor understands the market movements, has the time to do research, and wants the higher returns, then investing in individual stocks is a better option. However, investing in individual stocks can be risky and one has to face higher volatility.

Common Mistakes to Avoid While Choosing Between Stock and ETF

Common mistakes made while investing in stocks and ETFs are mentioned below:

Making decisions based only on short-term returns: Many investors invest only by considering the recent performance or chart patterns and ignore long-term potential and risk. Whether it is a stock or an ETF, it is important to pay attention to future growth along with the tracking error in the ETF and past financial performances for stocks.
Ignoring expense ratio and fee structure: Investing in ETFs incurs fees known as expense ratio, which can affect returns over time. At the same time, frequent trading in stocks can increase brokerage charges.
Overlapping in portfolio: Investing in both ETFs and stocks is good, but at times investors invest in the same company through ETFs as well purchase their shares, which reduces diversity and increases risk.
Investing on Unverified Investment Tips: Investing on the advice of a friend, social media or an influencer without understanding your financial situation and goals can be risky. Conduct your own research or speak to a financial advisor before investing in ETFs and stocks.

Conclusion

Both ETFs and stocks have their own advantages and risks. While ETFs come with lower risk, diversification, and less effort, stocks offer more control with the potential for higher returns.

Deciding which option is better depends on the investor’s risk appetite, financial goals, and availability of time. It is important to evaluate your financial position and goals before investing. With the right strategy and information, good returns can be obtained from both the options.

Frequently Asked Questions (FAQs)

Which is safer: an ETF or Stock?
ETF is considered more safe because it invests in many companies, which reduces the risk.
Can beginners start with ETFs?
Yes, ETFs are a good option for beginners as they require less research and provide diversification.
Is it possible to have both an ETF and stocks in a portfolio?
Absolutely, balancing the portfolio by investing in both is a wise move.
Are ETFs suitable for long-term investment?
Yes, ETFs are stable and low-risk investment options for the long term.
Can I trade ETFs like regular stocks?
Yes, ETFs can be traded on an exchange just like stocks.

May 28, 2025

What Are Corporate Bonds?

In today’s dynamic investment landscape, investors have access to a wide range of opportunities, from equities to cryptocurrencies. However, these investments are not the most ideal for investors who want as little volatility in their portfolio as possible. Therefore, for such investors, corporate bonds are becoming a popular investment choice, as they have a moderate risk-return profile.

In this blog, we will explain all the concepts related to corporate bonds, including their types, advantages, risks, etc.

What is a Corporate Bond?

A Corporate Bond is a debt instrument that is issued by firms to raise funds. Investors can buy bonds from the firm and can lend money to the firm for a particular purpose. In exchange, the company will give periodic interest payments or coupon payments, and at the end of the period, the company returns the bond’s principal.

In other words, we can also say that whenever you buy a bond, it means you are lending money to the company, and in return for this, the company will repay you regular interest at a pre-determined interval along with return of principal at the end of the loan tenure. Moreover, corporate bonds yield a higher interest rate compared to government bonds.

Read Also: What are Bond Yields?

Features of Corporate Bonds

The key features of corporate bonds are as follows:

Higher Returns: Corporate bonds generally offer higher returns when compared to government bonds.
Liquidity: Corporate bonds are listed on the stock exchange but may have low liquidity.
Interest: Corporate bonds offer a fixed interest rate, which can be a regular source of income for investors.
Risk: Corporate bonds generally carry credit risk, which means the company may delay or default on interest and principal payments.
Maturity: The duration of corporate bonds ranges from short-term to long-term.

Types of Corporate Bonds

There are various types of corporate bonds available in the market; a few of these types are mentioned below:

1. Secured Bonds

These bonds are backed by certain assets which are kept as collateral. If the issuing company defaults, the assets can be claimed by the investors.

2. Unsecured Bonds

These are bonds that are not secured against any form of collateral. Hence, they are riskier than the secured bonds, as they are dependent on the issuer’s creditworthiness.

3. Fixed Interest Rate

These bonds offer a fixed interest rate and pay a fixed amount of interest throughout the term.

4. Floating Interest Rate Bonds

The interest rates of these bonds fluctuate with the market rates and are reset periodically.

5. Convertible Bonds

The bonds which can be converted into the equity shares of the company after a defined period are known as convertible bonds.

6. Non-Convertible Bonds

The bonds which cannot be converted into equity shares are known as non-convertible bonds.

7. Callable Bonds

In this kind of bond, the company has the privilege to redeem the bonds before maturity. This facility is usually availed by companies when the overall interest rates declines.

9. Putable Bonds

These bonds provide investors the right to sell the bond back to the issuer before maturity.

10. Zero Coupon Bond

These bonds do not pay periodic interest; they are issued at a discount to their face value and redeemed at face value at maturity

Benefits of Investing in Corporate Bonds

The significant benefits of investing in corporate bonds are as follows:

High Returns: Corporate bonds generally offer higher interest rates than any other government bond, compensating for the higher credit risk. Hence, investors who are willing to take risks in order to get the extra returns can opt for investing in such bonds.
Passive Income: The issuer pays interest payments in the form of coupons to the investors at regular intervals, usually semi-annually to annually. It can be a good source of passive income for investors.
Capital Protection: Investing in corporate bonds is usually safer than investing in equity as in the event of liquidation bondholders have a higher claim on assets than equity shareholders.

Risk of Investing in Corporate Bonds

There are several risks involved while investing in corporate bonds, a few of which are mentioned below:

Credit Risk: This is the most prominent risk when investing in a corporate bond as the issuer might fail to make the interest or principal payment because of any financial trouble.
Liquidity Risk: Most of the corporate bonds have extremely low liquidity, which makes it difficult for buyers and sellers to execute their trade in the secondary market.
Inflation Risk: If inflation rises over time then the coupon payments based on lower interest rate offered by your corporate bond will not be able to beat inflation.
Reinvestment Risk: When the corporate bond matures, you will get the redemption amount, including the principal and interest. Reinvestment risk refers to the possibility that proceeds from a maturing bond may have to be reinvested at a lower interest rate. This generally happens when the interest rates have dropped.

Factors Influencing the Price of Corporate Bonds

There are various factors which significantly impact the prices of corporate bonds; a few of such factors are as follows:

Credit Rating: There are various credit rating agencies which regularly monitor the creditworthiness of the issuer; hence, if they downgrade their rating because of any financial trouble in the company, the prices of the corporate bond will fall.
Interest Rate: The market interest rates play a major role in determining the price of a corporate bond. If the interest rate rises, the prices of the existing bonds will decrease.
Inflation: An increased inflation rate can decrease the real return of the bonds, thereby making them less desirable to invest in; thus ultimately resulting in a decline in prices of such corporate bonds.

How to Invest in Corporate Bonds?

There are various ways through which one can invest in corporate bonds; a few of such ways are mentioned below:

Primary Market: Bonds are issued for the first time in the primary market, hence, an investor can purchase them directly from the issuer.
Secondary Market: You can sell your corporate bonds in the secondary market through brokers, financial institutions or online platforms. Some of the corporate bonds are listed on the stock exchange by the issuing company to provide liquidity to the investors. However, due to low liquidity it may be difficult to purchase them easily.
Mutual Funds: Debt mutual funds invest in corporate bonds and are known as corporate bond funds. One can easily invest in these funds through SIP and Lumpsum.

Conclusion

On a final note, corporate bonds are suitable for investors who want less volatility in their portfolios and want regular income. However, the corporate bonds are not completely safe. There are factors such as interest rates, credit ratings, and economic conditions which may have an impact on the returns of corporate bonds. Hence, before making any investment decision, one should consult his/her financial advisor, investment horizon, as well as risk profile.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Electoral Bonds Explained: What Are They and Why Did Supreme Court Ban It?
2	CAT Bonds: An Easy Explainer
3	Explainer on Green Bonds: History, Process, Pros, Cons, and Future Outlook
4	What Is Bowie Bond (Music Bonds) : History, Features, Advantages & Disadvantages
5	Benefits of Investing in Bonds

Frequently Asked Questions (FAQS)

Who is allowed to invest in corporate bonds?
Anyone can invest in corporate bonds; however, investment in corporate bonds is appropriate for risk-averse investors who are looking for a steady source of income.
What risks are involved with corporate bond investment?
Investment in corporate bonds involves several risks, like liquidity risk, credit risk, inflation risk, etc.
How can I sell a corporate bond before maturity?
Some of the corporate bonds are listed on the Indian Stock Exchange but have low liquidity. You can sell your corporate bonds in the secondary markets through brokers, financial institutions and other online platforms.
Which is the safest corporate bond based on credit ratings?
Based on the credit ratings, AAA-rated bonds are generally considered safest, followed by AA, A, etc.

May 27, 2025

Benefits of Investing in Bonds

One of the most important advantages investing in bonds offers, especially in today’s volatile economy, is portfolio diversification. While most investment news is covered up by stocks, bonds offer unique benefits that provide solace and predictable returns aiding in the diversification of the portfolio.

In this blog, we will further understand the benefits of investing in bonds and see how it can improve and protect your investment portfolio.

Reasons to Invest in Bonds

Bonds are said to be one of the safest investment avenues for people who are seeking stability and consistency in their portfolio performance. Bonds are debt instruments where the investor (bond buyer) lends money to the bond issuing entity that can either be a government or corporation in exchange of interest payments at regular intervals and the return of principal amount at maturity.

When you buy a bond you become a creditor to the issuer as you get the principal amount at the time of maturity along with regular interest payments or coupon payments. Coupons are generally distributed annually or semi-annually providing you a risk-free stable income.

Top Benefits of Investing in Bonds

A list of top benefits of investing in bonds are:

1. Stable and Predictable Income

People who invest in bonds enjoy the benefits of steady income. Like clockwork, bonds pay fixed interest at pre-defined intervals and this makes them suitable for retirees or anyone looking for a passive income source. Most of the government and corporate bonds in India offer interest rates between 8% to 11% per annum.

2. Capital Preservation

Bonds are excellent for preserving capital given that they repay your principal at the set maturity date. These are particularly suitable for those wanting to avoid the ups and downs of equity markets or nearing retirement. While you may face wild fluctuations in investment value when it comes to stocks, bonds are less volatile and provide more security.

3. Portfolio Diversification

Bonds mitigate risk and adding them to your portfolio can prove beneficial. Since bonds are not correlated to equity returns, they lower overall portfolio risk, providing protection during stock market slumps. You can invest in bonds issued by different types of issuers such as government, corporate, or municipal to further diversify your portfolio.

4.Tax Benefits

In India, some bonds provide tax-free returns. For instance, certain government-issued bonds offer tax-free interest income, making them popular among investors.

5. Aids in Nation-Building and Development of Businesses

Purchasing government bonds helps you contribute to the funding of infrastructure projects like building roads, schools, and bridges. Corporate bonds contribute to business growth, rise in employment opportunities and economic development.

6. Shield Against Inflation

Certain types of bonds, such as inflation-indexed bonds adjust the maturity amount according to inflation, which protects investors against inflation. This maintains the buying power of the returns earned.

Read Also: What are Bond Yields?

Things to Consider Prior to Making Investments in Bonds

Like many other forms of investments, bonds also come with risks that have to be considered beforehand. While their reputation may suggest safety, there is a lot more under the surface. The most prominent risks to consider are :

1. Interest Rate Risk

Interest rates and bond prices have an inverse relationship, meaning that when interest rates increase, prices of existing bonds tend to decrease. This happens due to new bonds offering better yields, thus lowering the value of older bonds in the market.

2. Credit Risk (Default Risk)

This is the risk describing a scenario in which the bond issuer might fail to give interest payments or repay the principal amount at maturity. Bonds issued by famous companies and governments are safer, while corporate or junk bonds carry a higher credit risk.

Tip: Use the bonds credit rating from CRISIL, ICRA, etc to analyse the credit risk of the bond. They all provide reliable ratings and can help you make a better investment decision.

3. Inflation Risk

Inflation is referred to as a general price rise in an economy, this means that with time the price of goods and services increase leading to a decline in the purchasing power of money. In other terms, each rupee will buy less amount of goods and services today than in the past.

In case inflation rate shoots up sharply, then the bond returns will be lower in real sense. Example : If a bond pays 5% interest every year but inflation is 6%, then your real return is negative.

4. Liquidity Risk

The bonds may have been listed on the exchange but there may be no liquidity, which means that there may be no buyers at the time when you wish to sell and vice-versa. If you value liquidity, stick with government bonds or high-rated corporate bonds.

5. Call Risk

Certain bonds have a call option, which allows the issuer to retire a bond before its maturity date, usually if interest rates decrease. This is a plus for the issuer, but a disadvantage for investors who lose potential interest earnings and now may want to reinvest the amount at reduced interest rates.

Some popular bonds that Indian investors can invest in are as follows :

1. Government Bonds (G-Sec) – These are low-risk bonds that are issued by the Central Government and are considered the safest investment option.

2. Corporate Bonds – These bonds are issued by the private companies to raise funds/capital and these bonds typically offer high yields due to credit risk associated with them.

3. Tax Free Bonds – The interest earned by the bondholder is exempt from taxation in these bonds.

Conclusion

All investors can enhance their investment portfolios by investing in bonds. These securities provide numerous benefits, such as stable income, protecting capital, and portfolio diversification. Even though their returns are often lower than equities, bonds are less risky and provide steady income to conservative investors. Understanding the various benefits and factors affecting bond investments allows investors to align their investment decisions with their financial aspirations. It is advised to consult a financial advisor before investing.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Electoral Bonds Explained: What Are They and Why Did Supreme Court Ban It?
2	CAT Bonds: An Easy Explainer
3	Explainer on Green Bonds: History, Process, Pros, Cons, and Future Outlook
4	What Is Bowie Bond (Music Bonds) : History, Features, Advantages & Disadvantages
5	Types of Investment in the Stock Market

Frequently Asked Questions (FAQs)

What is the primary purpose of investing in bonds?
The main goal is earning consistent income through interest payments and safeguarding capital by getting the principal amount back upon maturity.
What is the difference between bonds and stocks?
Bonds are a form of debt instrument offering investors fixed interest payments and return of principal on maturity. Whereas, stocks signify ownership in a company and may provide dividends and capital gains.
Is it a good idea to invest in bonds for the short term?
Bonds with shorter maturities do exist, which could be a good idea for risk averse investors that are looking for stable returns and high liquidity. However, compared to long term bonds their returns will be lower.
Is it possible for bond investments to decrease in value?
Yes, bond investments can decrease in value as a result of shifts in interest rates, credit risk, and other market forces. These factors can result in potential capital losses if a bond is sold prior to its maturity date.
What is your recommended course of action for someone interested in starting to invest in bonds?
Bonds can be purchased through online platforms in individual bonds and debt mutual funds that invest in a variety of bonds.

May 27, 2025

ETF vs Index Fund: Key Differences You Must Know

The trend of passive investing is growing rapidly in India, where people are investing in funds that follow indexes like Nifty 50 or Sensex. The AUM of passive funds in India is expected to reach ₹11.13 lakh crore in 2025, which includes both ETFs and index funds.

Both these options provide low-cost investment, but there are some important differences between them. In this blog, we will understand the difference between Index Funds and ETFs in simple language and know which one is better for you.

What is an Index Fund?

An index fund is a type of mutual fund that tracks a certain market index (such as Nifty 50 or Sensex). Its objective is to replicate the performance of that index. This fund invests in shares of only those companies that are part of that index, and investment is made in the same proportion as that of index.

Passive Investment Strategy : In an index fund, stocks are not selected by an active fund manager. Instead, investment is only made in shares that are index constituents. This is why it is called a passive investment strategy. Its expense ratio is also low due to less analysis required.
Transaction Process : Index funds are bought and sold at the NAV (Net Asset Value) declared at the end of the day. That is, there is no continuous buying and selling during the day, as is the case with ETFs.
Not Expensive : It is possible to invest small amounts at regular intervals in this fund through SIP (Systematic Investment Plan) and build your investment portfolio over time.

Key features in brief:

Invests in index-based stocks
Not actively managed
Low cost and low risk
SIP facility available

What is an Exchange-traded fund?

An ETF, i.e., an exchange-traded fund, is a fund that tracks a particular stock market index, such as the Nifty 50 or Sensex, gold, silver, etc. The main difference between an index fund and an ETF is that it can be bought and sold in real time in the stock market, like shares of a company.

Intraday trading facility : ETF is traded on the stock exchange, so its price keeps changing throughout the day depending on demand and supply. Investors can do intraday trading in it; that is, buying and selling is possible on the same day.
Investment process and requirements: Demat and trading accounts are mandatory for investing in an ETF because its units trade like stocks. This fund is suitable for those who want to manage their investments a little more actively.
Low cost and transparency : The expense ratio of ETFs is very low, and they follow the index in a transparent manner due to low tracking error. Apart from this, ETFs also have high liquidity, as they can be sold anytime during market hours.

Key features in brief:

Can be bought and sold in real-time in the stock market
Tracks a specific index, gold, silver, etc.
Demat and trading account mandatory
Low expense ratio
Facility for intraday trading

Difference Between ETF and Index Fund

The table below presents the key differences between ETFs and index funds. The comparison is based on important aspects such as investing method, cost, tax, investment process, and liquidity. This table is useful for both professional investors and beginners to make the right decision.

Parameter	ETF (Exchange Traded Fund)	Index Fund
Investment Process	Trades on stock exchanges like individual stocks.	Bought or sold only at the end-of-day NAV.
Liquidity	High liquidity – can be bought/sold any time during market hours.	Relatively Lower liquidity – transactions occur only once a day based on NAV.
Expense Ratio	Exchange-traded funds have a lower expense ratio than index funds.	Index Funds have a higher expense ratio than exchange-traded funds.
SIP Availability	SIP cannot be done.	SIP can be done.
Demat Account Requirement	Mandatory requirement of both demat and trading accounts for investing.	Not required, if you prefer to hold the mutual fund units in physical form.
Minimum Investment	Can start with the price of one unit	Minimum SIP amount usually starts at ₹500 or ₹1000.
Pricing Mechanism	Real-time market price fluctuates based on demand and supply throughout the day.	NAV-based pricing calculated and declared once daily.
Investment Experience	Requires technical understanding of trading, pricing, and brokerage.	Simple and user-friendly; ideal for beginners.

Both ETFs and index funds are great options for passive investment. ETFs offer more flexibility, liquidity and trading experience but require a Demat account. On the other hand, index funds are simple, safe, and ideal for long-term investing with features like SIP.

Pros and Cons of Index Funds and ETFs

Pros and Cons of Index Funds

Pros :

It is easy to start investing as a Demat account is not required for investing in Index funds mutual funds.
It is possible to make regular and systematic investments through SIP.
The most suitable and simple option for new investors.

Cons :

There is no real-time trading; transactions are done only at the end of the day on NAV.
Tax efficiency is less than ETFs.
There is not much flexibility in trading.

Pros and Cons of ETFs

Pros :

Can be traded on the stock exchange during market hours.
The expense ratio is low, which reduces the cost.
Transparency and liquidity are high.

Cons :

Demat and trading accounts are required for investing in ETFs.
SIP facility is not generally available, so regular investment can be a bit difficult as investors have to invest manually.
There may be additional expenses incurred during trading, such as brokerage and bid-ask spread.

Both options have their own advantages and disadvantages, so the choice of investment depends on the individual’s needs and investment style.

Which Should You Choose?

Deciding between index funds and ETFs can be tough. You can refer to the points mentioned below to make a smart investment decision:

Investment goals and period : If you want to make stable and regular investments for a long period, then an index fund is better. It has the facility of SIP, through which small investments can be made at regular intervals without much effort. It is also an easy and suitable option for new investors.
Active vs Passive Investment : If the risk-taking capacity is high and you want to take advantage of the ups and downs of the market, then an ETF is a better option as the investor can actively trade it on the stock market. On the other hand, if the investor prefers a passive investment, then an index fund should be the priority.
Investment platform and requirements: Demat and trading accounts are mandatory for investing in an ETF, along with market understanding. In contrast, an index fund can be purchased directly from the fund house, in which a Demat account is not required.

One should choose between an ETF or index fund keeping in mind the investment goal, risk capacity, and available resources. The right choice ensures maximum profit and security of investment.

Know More: Calculate returns on ETF investments.

Conclusion

Both ETFs and index funds are great and low-cost options for passive investing. The main difference between the two is in the trading process, liquidity, tax efficiency, and investment method. ETFs can be traded on stock exchange and are more transparent, while index funds are simpler to invest in and suitable for SIPs. To make the right choice, it is important to evaluate your investment goals, risk tolerance, and available resources. It may also be wise to consult a financial advisor before starting to invest.

Frequently Asked Questions (FAQs)

What is the main difference between an ETF and an Index Fund?
ETFs can be traded on the stock exchange, while Index Funds are bought or sold at the end of the day NAV.
Can I start SIP in ETFs?
Direct SIP is not possible and the investor must manually buy ETF units at regular intervals.
Is Demat account necessary for Index Funds?
No, a Demat account is not required to invest in an Index Fund.
Which is better for beginners: ETF or Index Fund?
Index Fund is easier and more convenient for beginners.
Are ETFs more tax-efficient than Index Funds?
Yes, ETFs are slightly more tax efficient, especially in the long term.

May 26, 2025

What is Gold ETF? Meaning & How to Invest Guide

Gold has been important in India for centuries from an investment and cultural point of view. Traditionally, people used to buy gold in the form of jewellery, coins or biscuits. However, buying physical gold comes with challenges such as storage, insurance, and making charges.

Currently, investors are turning to digital options, among which Gold Exchange Traded Funds (Gold ETFs) are prominent. These funds trade on the stock exchange and track gold prices, allowing investors to invest in it without buying physical gold.

What is a Gold ETF?

Gold ETF or Gold Exchange Traded Fund can be considered as a type of mutual fund that tracks the prices of gold and can be bought and sold in the stock market. It is a digital medium of investment, which is free from the problems of storing physical gold.

It eliminates hassles of owning physical gold such as storage, insurance or making charges. It is a safe, transparent and convenient way to invest in gold. The purpose of investing in Gold ETF is to diversify the investment portfolio, protect against inflation and market decline.

This investment instrument has the potential to give stable and reliable returns over the long term. For this reason, Gold ETF can be considered a smart investment option in today’s time.

Key features of Gold ETF

Gold ETFs are traded in the stock market, just like stocks of a company are bought or sold. Its key features are:

Linked to the price of gold: The mechanism of a gold ETF fund is very simple. The ETF tracks the price of gold and its price fluctuations, which are closely linked with the price changes of physical gold.
Backed by real gold: Gold ETFs are backed by real (physical) gold. This means that every unit has some quantity of actual gold behind it either in the form of physical gold or in the form of ETCDs (Exchange Traded commodity Derivatives) that have physical gold as underlying asset.
Traded on stock exchanges: The biggest feature of these ETFs is that they can be bought or sold anytime during market hours. This makes them a liquid and flexible investment option.
Low cost and hassle-free investment: Investing in gold ETFs involves neither making charges nor storage fees. It is a less expensive and easier investment option than physical gold.

How to Invest in Gold ETFs in India?

Investing in Gold ETFs is an easy process. It is similar to buying stocks in the stock market.

Step-by-step process:

1. Open Demat and Trading Account: To buy Gold ETF, first of all you need a Demat and trading account. Pocketful is a SEBI-registered brokerage platform with an easy to use mobile application and web platform, offering advanced technical tools and market insights.

2. Choose the appropriate Gold ETF Fund: Compare Gold ETF Funds offered by different issuers, such as GOLDBEES, SETFGOLD, etc. Make sure to check the following:

AUM (Assets Under Management) of the fund
Expense Ratio
Tracking Error

3. Buy from Trading app: One can also invest directly in Gold ETF from Pocketful’s mobile application.

Note: For a profitable investment journey, remember the following points:

Decide your financial goals
Start with small investments
Keep an eye on tracking error and trends in gold prices
Invest with a long-term view

Taxation on Gold ETF Investment

Gold ETFs have now been placed in a separate category and are taxed based on the information in the table below:

Holding Period	Type of Capital Gains	Tax Rate
12 months or less	Short-Term Capital Gains (STCG)	As per individual income tax slab
More than 12 months	Long-Term Capital Gains (LTCG)	12.5% flat rate

Tips for Investors

Tax Planning: It is important to plan before investing keeping in mind the tax implications.
Professional Advice: It may be beneficial to consult a tax advisor to understand tax-related complexities.

Advantages of Gold ETFs

Various advantages of Gold ETFs are:

No storage concerns: Unlike investing in physical gold, gold ETFs investors do not have to worry about safe storage or theft.
High liquidity: Gold ETFs are traded on the stock market, so they can be easily bought or sold anytime during market hours.
Transparent pricing: Gold ETF prices are directly linked to gold prices, which keeps ETF pricing transparent and unbiased.
Low expenses: Compared to gold mutual funds, gold ETFs have lower management expenses (Expense Ratio), which reduces the overall cost of investment.
Portfolio diversification and inflation protection: Gold ETFs help you diversify investments and also provide protection against inflation.

Overall, gold ETFs combine the benefits of investing in gold with the ease of equity investing, making it a simple, affordable and effective investment option.

Disadvantages of Gold ETFs

Disadvantages or risks associated with investing in Gold ETFs are listed below:

No physical delivery: Gold ETFs cannot be redeemed for actual gold due to which some investors may prefer owning physical gold relative to investing in gold ETF.
Possibility of tracking error: Sometimes the price of gold ETFs may differ slightly from the price of physical gold.
Market volatility: The price of gold ETFs may fluctuate due to trading in the stock market.
Demat account required: A Demat and trading account is required for investment, which some investors may not have.
No additional interest: Unlike sovereign gold bonds, gold ETFs do not offer any additional interest or dividend.

For these reasons, it is important to understand all the risks and limitations before investing.

Should You Invest in Gold ETFs?

Below are the reasons behind why you should invest in Gold ETFs:

Risk control: Gold ETFs are a good choice for investors who want to minimise risk and diversify their portfolio.
Convenient digital exposure: Gold ETFs offer a seamless and transparent way to invest in gold through digital medium as compared to physical gold.
Suitable for medium to long term investments: Gold ETFs are effective instruments for inflation protection and capital preservation during economic volatility.
Begin Small: Some of the Gold ETFs trade below ₹100, making them accessible to small investors. Whereas, investing in physical gold requires substantial amounts of capital.

However, it is important to take expert advice regarding individual financial situations and investment goals before investing to make the right decision.

Read Also: How to Invest in Silver in India?

Conclusion

Gold ETFs are a smart, convenient and modern way to invest in gold. It is not only tax efficient but also safe and ideal for diversifying your investment portfolio. While avoiding the hassles of physical gold, Gold ETFs offer the simplicity of digital investing. To balance your portfolio, consider investing in Gold ETFs today with Pocketful.

Frequently Asked Questions (FAQs)

How to invest in Gold ETF?
To invest in Gold ETF, it is necessary to have a Demat and trading account. You can easily open an account with Pocketful, transfer funds, search for Gold ETFs and begin investing.
What are the tax implications of Gold ETF?
Holding for less than 12 months is taxed as per the income tax slab, and holding for more than 12 months is taxed at 12.5% LTCG.
Can Gold ETF be exchanged for physical gold?
No, Gold ETFs do not provide delivery of physical gold as they are only digital units.
Is Gold ETF better than physical gold?
Gold ETFs have several benefits over physical gold, such as no storage fees, more secure and highly liquid, making them a better option for many investors.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

May 26, 2025

How to Invest in Silver in India?

The process of building a diversified portfolio is incomplete until you invest in assets like gold and silver. Where gold has been a pioneer in the field of investing yielding consistent returns, silver has recently received much attention due to its increasing demand in the industrial sector. This is one of the reasons for the rising value of silver as an investment.

But the question is, how can you invest in silver? Well, there are innumerable options that you can select from. Here’s a simple guide to help you invest in silver with ease. Starting from the physical silver to how to buy Silver ETF, we will cover every single point in the guide here.

Ways to Invest in Silver

There are various ways you can invest in silver. From the traditional method of buying physical silver to SIP in Silver ETF, the options are many. So, to start with, let us briefly understand the investment choices that you have:

1. Physical Silver

This is the most traditional method of investing in silver. You can buy coins, bars, and jewelry. Bars and coins are preferred due to their purity and high resale value. Jewelry is usually selected for adornment and value.

This physical silver is tangible in nature and needs proper storage. Usually, people store them in lockers at home or banks. This can add to the overall cost as well. Also, one important thing to know here is that physical silver offers you liquidity. In case of need, you can sell and raise funds in no time.

2. Silver ETFs (Exchange-Traded Funds)

Silver ETFs are a new form of investment. Here, you invest in the funds that are traded on stock exchanges and track the silver price. When an investor buys a Silver ETF, they gain the benefit of silver’s price movement without actually owning it physically.

These are highly liquid and offer ease of trading. There is no issue with the safekeeping or storage, which makes them a better investment choice than the rest. Since the trading happens on exchanges, ETFs offer you better transparency. One important thing to note here is that you would need a demat and trading account to invest in Silver ETFs.

3. Silver Futures

These are the standardized contracts that are traded on the commodity exchange, such as the MCX. Traders use these contracts to benefit from silver’s price movements. So, the primary aim of this is to realize short-term gains and not invest for the long run.

Futures trading requires margin payments (fraction of the contract value) due to which volatile price movement can result in significant losses. Make sure to square off existing positions to avoid the contracts getting exercised and physical settlement.

4. Digital Silver or E-Silver

Digital silver allows investors to buy and own silver in fractional quantities through online platforms. The purchased silver is backed by physical metal stored securely by the scheme provider. This investment option offers convenience.

Through this, investors can buy or sell even small amounts without the hassle of storage. So, if you are looking for a flexible and secure investment in silver, this is a great choice.

5. Silver Mutual Funds

Instead of going for the physical silver, you can invest in silver MFs as well. This involves investing in silver ETFs and other Exchange-Traded Commodity Derivatives (ETCDs). It can be viewed as an indirect form of investing in silver ETFs with an advantage of fixing monthly SIPs.

6. Silver Mining Equities

It is when you directly invest in companies that work in the field of extraction, exploration, or production of silver. This allows you to benefit from an increase in silver prices and the company’s growth at the same time. Hindustan Zinc Ltd and Vedanta Ltd are a few companies in this sector.

So, when it comes to how to buy silver in India, these are some of the prominent options available. Of these, Silver ETFs stand out. So, let us now explore the Silver ETF in detail over here.

Why Choose Silver ETFs Over Other Silver Investment Options?

Modern investors usually look for safe and low-maintenance investment options. Silver ETFs are a better choice because they are traded on the exchange, and no physical storage is needed.

But there are other reasons as well that make Silver ETFs a better choice. So, here are the top ones that you should be aware of:

1. High Purity Standards

Silver ETFs in India invest only in silver with 99.99% purity. This ensures that your investment is backed by top-grade metal, which reduces quality risks. This makes the investment more reliable compared to buying silver physically from unverified sources.

2. Direct Correlation with Silver Prices

When you invest in Silver EFT, you can track its prices easily as it follows the price of the silver, which makes it a transparent investment. Also, you can observe the price movements in real-time, which allows you to adjust your investment strategies and avoid losses.

3. Elimination of Physical Storage Concerns

Unlike physical silver, ETFs don’t need lockers or safes. The fund houses store the metal securely in accredited vaults, reducing the hassle and cost associated with personal storage, theft risk, or insurance for the investor.

4. Regulated by SEBI

Investors usually seek investments that are regulated. This is where Silver ETFs stand out as the rules of SEBI govern these financial instruments. This ensures authenticity and trust and further ensures that the interest of the investors is safeguarded throughout the investing journey.

5. Liquidity and Ease of Trading

Silver ETFs are listed on stock exchanges, which allows the investors to buy and sell them online during trading hours easily. This allows you to make an entry or exit quickly as needed. This way, you can quickly liquidate your investment by selling due to high transaction volume. Hence, this is a good choice for both short-term traders and long-term investors.

6. Cost-Effective Investment

There are no making charges, storage fees, or hidden premiums like with jewelry or coins. Apart from a nominal management fee, Silver ETFs are economical, offering better value for money when compared to physical silver purchases.

7. Accessibility for Small Investors

Silver ETFs allow you to start investing with a small capital, making them ideal for beginners or those wanting to build exposure gradually. Some of the silver ETFs are priced below ₹100, unlike physical silver, which often requires substantial capital to invest.

8. Diversification Benefits

Various global factors impact your portfolio such as geopolitical events, interest rates, etc. So, when you add the Silver ETFs to your portfolio, you are not just buying silver, but you are also reducing the overall risk of your investment portfolio. There are chances that silver might outperform other asset classes during certain market phases, which will work in your favor too.

How to Invest in a Silver ETF?

There is no doubt that Silver ETFs are a great choice for investment. But the question that arises over here is how can you invest in Silver ETF. Well, here is the stepwise guide to help you invest.

1. Open a Demat and Trading Account

Start by opening a demat and trading account. You can open this for free on a platform like Pocketful, which offers a hassle-free online process. Just submit the basic KYC requirements along with documents, and your account will be created shortly after verification.

2. Explore Available Silver ETFs

Once your account is opened, search for the silver ETF listed on the stock exchange. There are many issuers that offer silver ETFs and it is necessary to compare them on the basis of tracking error, expense ratio, etc. to select the best one among them.

3. Invest via SIP or Lump Sum

You have the option to invest in a lump sum or SIP in the Silver ETF. The choice is based on your investment goals and disposable income. For beginners, SIP is a great choice that offers the benefit of rupee-cost averaging and builds discipline.

4. Place Your Buy Order

Once you’ve chosen your silver ETF, place a buy order. You can either use a market order or limit order, enter the quantity, and click on buy.

5. Track and Manage Your Investment

One of the most important aspects of investing in Silver ETF is to keep track of price changes and adjust your investment strategy as needed. You can track it directly online through Pocketul’s user-friendly mobile app.

While investing, ensure to keep an eye on economic trends and stay updated with market events. This will help you make the right investment decision.

SEBI Rules for Silver ETFs

SEBI regulates Silver ETFs to ensure investor safety, price accuracy, and fund transparency. The rules to know are:

Minimum Asset Allocation: At least 95% of the ETF’s net assets must be invested in physical silver or silver-linked exchange-traded commodity derivatives (ETCDs).
Tracking Error Limit: The tracking error must not exceed 2%, ensuring the ETF closely mirrors actual silver price movements.
Expense Ratio Cap: The total expense ratio is capped at 1%. This keeps the fund management costs low for investors.
Purity Standards: All silver held must comply with London Bullion Market Association (LBMA) standards, ensuring a purity of 99.9%.

Taxation on Silver ETF in India

When you invest in a Silver ETF, it is important that you are aware of the taxation part as well. So, here is a brief overview of the taxation that you should be aware of when investing in silver:

Holding Period	Type of Gain	Tax Rate
Less than or equal to 1 year	Short-Term Capital Gains (STCG)	As per the tax slab with 4% cess and surcharge, if any
More than 1 year (before 1/April/2025)	Long-Term Capital Gains (LTCG)	As per the tax slab with 4% cess and surcharge, if any
More than 1 year (starting 1/April/2025)	Long-Term Capital Gains (LTCG)	Taxed at 12.5% with applicable surcharge and 4% cess

Things to Consider Before Investing in Silver

Once you have decided to invest, there are certain things that you must consider. So, here are the key points to know:

Volatility: Silver prices can fluctuate sharply due to changing industrial demand and global economic conditions. Be prepared for short-term price swings.
Form of Investment: Choose between physical silver, ETFs, digital silver, or mutual funds based on your risk appetite, liquidity needs, and investment goal.
Storage and Purity: Physical silver needs secure storage and may not fulfill purity standards. ETFs and digital silver address these concerns.
Tax Impact: Short-term gains can attract higher taxes; holding silver for a longer duration is more tax-efficient and offers you the benefit of appreciation in silver prices, too.
Liquidity: While ETFs and digital silver offer easy exit, selling physical silver might need a bit more time.

Conclusion

Investing in silver is a great way to diversify a portfolio and gain a hedge against inflation. Also, with options like Silver EFTs, you can invest in silver without the worry of storage. This way, you can benefit from the appreciation in silver prices easily. This is where platforms like Pocketful can help. They make investing simple, secure, and beginner-friendly.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

Is Silver ETF a good investment option?
Yes, these are good investment options as they offer exposure to silver without worrying about storing it physically. Moreover, these are regulated by SEBI, ensuring safety and transparency.
Can I invest in a Silver ETF without a demat account?
No, you need both a demat and a trading account to invest in Silver ETFs.
What is the benefit of using Pocketful for silver investments?
Pocketful offers an easy-to-use mobile application and lets you track, invest, and manage Silver ETFs all in one place.
Can I start investing in Silver ETFs with a small amount?
Yes, you can start investing in Silver ETFs with a small amount as most of them trade below ₹100.
What is the tax on silver investments?
Gains from Silver ETFs held for more than 1 year are treated as LTCG and taxed at 12.5%. If sold within a year, gains are treated as short-term capital gains and taxed as per your income tax slab.

May 24, 2025

How to Invest in ETFs in India – A Beginner’s Guide

Today, an excellent way to invest smartly and easily is through ETFs (exchange-traded funds). ETFs can be considered as mutual funds that trade like stocks and track indices, gold, or bonds. ETFs are becoming increasingly popular in India as they offer low expense ratios, more transparency, and good liquidity. If you want to know how to invest in ETFs or buy ETFs in India, then this blog is for you. In this guide, we will tell you what an ETF is, how to choose one, and where to buy one in simple terms.

What is an ETF?

An ETF, or exchange-traded fund, is an investment instrument that tracks a particular index, such as the Nifty 50, Sensex, or an asset such as gold. Its purpose is to replicate the performance of that index as accurately as possible. ETFs can be bought and sold on the exchange like stocks, meaning trading is possible throughout the trading session. It helps you diversify your portfolio like a mutual fund, but instead of a fund manager actively investing in stocks on your behalf, it follows the index—that is, it is an example of passive investing.

Investing in ETFs costs less because there is no active management fee. Also, there is more transparency in ETFs because information about holdings is readily available. Many types of ETFs, like equity, gold, international, and bond, are now available in India, which are considered easy and smart investment options.

Why invest in ETFs?

Investors today are looking for investment options that are low cost, low risk, and offer good returns in the long term, and this is why ETFs are becoming increasingly popular in India.

Low cost : The management fees and other expenses in ETFs are very low, which reduces the total expenses of the investors. Due to low expenses, the returns are better in the long term.
Transparent investment : In ETFs, it is clear in which index or asset the investment has been made. This gives the investor a correct idea of his investment and makes it easier to track investment performance.
Best for new investors : ETFs are an easy and safe way for new investors to begin their investing journey. Through ETFs, one can invest in the wider market without selecting specific stocks. It reduces the risk and is suitable for beginner investors.
Opportunity to diversify the portfolio : ETF investment can diversify the portfolio well. This reduces the risk, as the investment is spread across many sectors and companies.
Open the doors to International Markets: Through ETFs, one can easily invest in markets outside India, like America, China, and other global markets.
Growing popularity of index investing : In India, especially young and new investors are now preferring index-based ETFs over investing in individual stocks. This trend has increased due to ETF’s transparency, simplicity, and diversity.

Moreover, ETFs are fully regulated under SEBI rules, making them safe and reliable. The total assets under management (AUM) of ETFs in India is constantly growing, which reflects the growing confidence of investors.

Know More: Calculate returns on ETF investments.

How to Select the Right ETF?

Before investing in ETFs, it is very important to pay attention to some important factors so that the investment is safe and profitable.

Tracking Error: This shows how much the performance of the ETF differs from its index. ETFs with low tracking error are considered better. Example: Nippon India ETF Nifty BeES is known for low tracking error.
Expense Ratio: There is an annual fee charged on ETFs. The lower the expense ratio, the better the returns. Example: ICICI Prudential Nifty 50 ETF has a very low expense ratio.
Liquidity and AUM: The trading volume and total AUM (assets under management) of the ETF indicate how popular and liquid it is.
Underlying Asset or Index: The index the ETF is tracking, such as Nifty 50, Sensex, or Gold, should match the investment objective.

Choosing an ETF is not a difficult task, but it is very important to be cautious of how a specific ETF affects your overall investment portfolio. Invest, keeping in mind tracking error, expenses, liquidity, and index, so that you get better returns and stability in the future.

How to Buy an ETF in India – Step-by-Step Guide

Buying an ETF is as easy as buying a stock. If you are investing for the first time, then you can start investing in ETFs without any hassle by following the steps given below:

Open a Demat Account: To buy an ETF, first of all, it is necessary to have a Demat account. It can be opened with any brokerage platform like Pocketful.
Login using Credentials: Log in to your trading app or web platform and enter the name or ticker symbol of the ETF you want to buy (e.g., “NIFTY BEES” or “GOLD BEES”) in the search bar.
Place the order : Check the price of that ETF on NSE or BSE, enter the quantity and click on the ‘Buy’ option.
Delivery will be in Demat Account: Just like the shares are stored in the Demat account, ETF units will also start appearing in the Demat account after the settlement process.

Benefits of Investing in ETFs with Pocketful

If you want to easily invest in ETFs, Pocketful is a great choice. Its modern and user-friendly mobile app is designed specifically for beginner investors.

₹0 Brokerage and ₹0 AMC : There is no brokerage fee charged on delivery of ETFs on Pocketful, and there is also no annual maintenance fee (AMC). This provides investors an opportunity to earn more returns at a lower cost.
Simple interface, easy start : Pocketful is a user-friendly app designed especially for new investors. No complicated process, just sign up and start investing.
Smart Analytics and Data-Driven Recommendations : Pocketful provides investors with market insights, making decisions easier.

Track, Review & Rebalance

Investing in ETFs is not limited to just buying at regular intervals. You should monitor your portfolio regularly so that it remains in line with your financial goals. You should follow the below measures to be more profitable:

Active monitoring : You should actively monitor your portfolio to ensure timely booking of profits and check whether the ETF’s performance is equivalent to underlying asset’s performance or not.
Compare Performance : It is important to periodically compare the performance of different ETFs and invest in ETFs with the lowest cost for better returns.
Importance of Rebalancing : Maintaining a balanced portfolio is crucial to protect against market fluctuations. Moreover, an individual should evaluate his financial position and make the required changes to his investment portfolio.
Use of digital tools : Platforms like Pocketful simplify portfolio tracking and rebalancing, allowing for smart and informed investing.

Know the Risks Before Investing in ETFs

ETF investing has many advantages, but it is equally important to understand the risks.

Market Risk: ETF prices change according to market movements. If the price of the underlying asset falls, the value of the ETF may also fall.
Sectoral Concentration: Some ETFs invest only in specific sectors or industries, which can reduce portfolio diversification and increase the risk.
Tracking Error: The purpose of an ETF is to track an index, but sometimes there may be a difference between the ETF performance and the index performance, which is called tracking error.
Liquidity Risk: Less traded ETFs may be difficult to sell, which may cause losses to investors.

Investing in ETFs should be done only after understanding these risks so that better and safer investment decisions can be made.

Taxation on ETFs in India

Type of ETF	Long-Term Capital Gains (LTCG)	Short-Term Capital Gains (STCG)
Equity ETFs	12.5% (Exempt up to ₹1.25 lakh per year)	20%
Gold ETFs	12.5%	Taxed as per income tax slab
Debt ETFs	Taxed as per income tax slab	Taxed as per income tax slab
Other Non-Equity ETFs	12.5%	Taxed as per income tax slab

Conclusion

ETF investing is an easy, affordable and smart way to enter the markets. Be it equity, debt, gold or international ETFs each brings its own benefits. With the right information, research and portfolio monitoring, ETFs can become an effective investment instrument for investors. Nowadays, with the help of platforms like Pocketful, it is even easier to start investing as you can invest in ETFs without paying any brokerage. Now is the time to take the first step towards your financial goals, choose wisely, review regularly and invest for the long term. It is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

What is an ETF?
An ETF (Exchange Traded Fund) is an investment instrument that tracks the performance of an index, sector, commodity or asset and trades on an exchange like a stock.
Is ETF investment safe for beginners?
Yes, investment in ETFs is considered safe as they usually track diversified indices or precious metals, making them a low-risk investment option for beginners.
Do I need a Demat account to invest in ETFs?
Yes, one needs to have a demat and trading account to invest in ETFs.
Are ETFs better than mutual funds?
Both ETFs and mutual funds have their own advantages. However, ETFs have lower fees and can be easily traded.
What is the minimum amount required to buy an ETF?
Some of the ETFs tracking gold and silver can be bought for as little as ₹100.

May 23, 2025

Category: Investing

Key Differences Between Gold Mutual Fund and Gold ETFs

Similarities Between the Gold Mutual Fund and the Gold ETF

What is a Gold Mutual Fund?

Features of the Gold Mutual Fund

What is a Gold ETF?

Features of Gold ETF

Which one is Better for You?

Conclusion

Frequently Asked Questions (FAQS)

Which has a lower expense ratio between the Gold ETF and the Gold Mutual Fund?

Is a demat account required to invest in the Gold Mutual Fund?

Are the returns of both the Gold Mutual Fund and the Gold ETF similar to the returns of physical Gold?

Is it safe to invest in a Gold ETF and a Gold Mutual Fund?

What is the major difference between a Gold ETF and a Gold Mutual Fund?

What is a Gold ETF?

How to Buy Gold ETF in India

Features of Gold ETF

Benefits of Investing in Gold ETF

Risk of Investing in Gold ETF

Gold ETF vs Physical Gold

Conclusion

Frequently Asked Questions (FAQS)

Is it mandatory to have a demat account to invest in Gold ETFs?

Can I convert my Gold ETF units into physical Gold?

How can I start investing in a Gold ETF?

Where does the Gold ETF invest my money?

What is the full form of Gold ETF?

Gold ETFs and Gold BeES: A Quick Comparison

Understanding Gold BeES

How Gold BeES Works?

Risks Associated with Gold BeES

Understanding Gold ETFs

How Gold ETFs Work?

Taxation of Gold ETFs and Gold BeES in India (2025)

Risks Associated with Gold ETFs

Who Should Invest in Gold BeES or Gold ETFs?

How to Invest in Gold BeES or Gold ETF Using Pocketful?

Conclusion

Frequently Asked Questions (FAQs)

Is Gold BeES the same as Gold ETF?

Can I invest in Gold BeES without a demat account?

Which is better for beginners – Gold BeES or Gold ETFs?

Are Gold ETFs and Gold BeES backed by physical gold?

How is tax calculated on Gold BeES and Gold ETFs?

What is an ETF?

What is Stock?

ETF vs Stock: Key Differences

Pros and Cons of Investing in ETFs

Pros and Cons of Investing in Stocks

Stocks or ETFs: Which is Better?

Common Mistakes to Avoid While Choosing Between Stock and ETF

Conclusion

Frequently Asked Questions (FAQs)

Which is safer: an ETF or Stock?

Can beginners start with ETFs?

Is it possible to have both an ETF and stocks in a portfolio?

Are ETFs suitable for long-term investment?

Can I trade ETFs like regular stocks?

What is a Corporate Bond?

Features of Corporate Bonds

Types of Corporate Bonds

1. Secured Bonds

2. Unsecured Bonds

3. Fixed Interest Rate

4. Floating Interest Rate Bonds

5. Convertible Bonds

6. Non-Convertible Bonds

7. Callable Bonds

9. Putable Bonds

10. Zero Coupon Bond

Benefits of Investing in Corporate Bonds

Risk of Investing in Corporate Bonds

Factors Influencing the Price of Corporate Bonds

How to Invest in Corporate Bonds?

Conclusion

Frequently Asked Questions (FAQS)

Who is allowed to invest in corporate bonds?

What risks are involved with corporate bond investment?

How can I sell a corporate bond before maturity?