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- Gold ETF

Gold Exchange Traded Fund (ETF)

In India, gold is not only an integral part of our cultural buying but is also considered to be the safest form of storing wealth. Rightly then, India is today the world's largest consumer of Gold (Source: World Gold Council).

To enable you to take the advantage of the bull rally in this commodity, Exchange Traded Funds (ETFs) have acted as a boon. Also known as paper gold, Gold ETFs are open-ended mutual fund schemes that invests your money in standard gold bullion (0.995 pure). Your holding will be denoted in units and listed on a stock exchange. These are passively managed funds and are designed to PROVIDE returns that would closely track the returns from physical gold in the spot market.

Why Invest In Gold?

Historically, gold prices have shown better stability even during periods of crisis, as compared to other investment types. Most experts advise investing in gold as a 'must', since gold creates a robust portfolio that withstands market fluctuations. Gold has reflected providing stable returns in the long run. Gold ETF Return on investment Source:

Why invest in Gold ETF?

Diversification: As an asset class, it gives you the benefits of diversification in your portfolio.
Liquidity: Since it trades like a share, buying and selling happens quickly and therefore it is highly liquid.
Safety: With Gold ETF you don't have to worry about the risk of theft and quality of gold.
Security: All transactions happen in electronic mode, so there is no risk in case of unforeseen circumstances.
Lower Cost: The expenses incurred in buying and selling Gold ETF are much lower than the cost incurred in buying, selling, storing and insuring physical gold.

Benefits of investing in Gold ETF:

Factors Physical Gold Commodity Exchange Gold ETF
Control On Quality of Gold Low High High
Cost Of Holding High High
Risk Of Theft High Low Low
Available Denominations Small Small Small
Wealth Tax Yes No No
Long-Term Capital Gains Tax After 3 years No After 1 Year
Liquidity Moderate High High

List of Gold based ETFs we offer

Symbol AMC Symbol AMC

How to invest Online in Gold ETF?

Step 1: Open an online trading and demat account with us (a broker affiliated with NSE and BSE) (in case you don't have an existing one)
Step 2: Log on to the web site of an online trading portal ( use your login ID & password to access your account.
Step 3: Place the buy order for the purchase of specified number of Kotak Gold ETF Units (Scrip code for Kotak Gold ETF is "KOTAKGOLD" for both NSE and BSE)
Step 4: Web system debits your bank account (Fund transfer through linked savings account) and credits your demat account with the units on trade date + 2 day.

Alternatively, you can also invest in Gold ETF by placing an order with your respective Kotak Securities dealer.

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