Gold Exchange Traded Funds (ETF)

Not only is buying gold considered auspicious in Indian culture; it is also regarded as a secure investment avenue.

Traditionally we buy gold in the form of jewelry or gold bullion. While gold jewelry loses some value during resale due to making charges; handling, storage and security become problems when large quantities of gold bullion is concerned.

We now have a new simpler way of buying gold – the Gold Exchange Traded Fund (ETF).

Gold ETFs are open-ended Mutual Funds that invest in Standard Gold Bullion of 99.5% purity. Instead of buying physical gold bullion, you can buy units of Gold ETFs that are equivalent to buying the real thing. The units you buy are stored in your demat account. This is why Gold ETFs are also called ‘Paper Gold’.

Units of Gold ETFs are listed on the stock exchange and they rise and fall as per the trends in the spot market for physical gold.

Why Invest In Gold?

In India, gold is one of those rare commodities that have consistently beaten the trends in the international market for nearly a decade now and given high returns on investment. It has the ability to withstand market highs and lows, compared to other investment types. This long-term wealth generation capacity and resilience to market changes make gold a necessary part of your portfolio.

Convenience of gold investing
Easy entry and exit
Cost efficient

How to invest in Gold ETFs?

Open a Kotak Securities online trading account and demat account
Place an order to buy a specified number of units of Kotak Gold ETF units by logging into your account on our website – www.kotaksecurities.com
The cost of the ETF units is automatically debited from your account and your demat account is credited with the specified number of Gold ETF units.
You can also place orders for Gold ETFs at your nearest Kotak Securities branch or with a Kotak Securities dealer.

What are the benefits?

Security
No more worries about theft of physical gold. Your gold purchases are safely stored away in your Kotak Securities Demat Account.
Liquidity
You can buy or sell Gold ETFs at a moment’s notice on the Kotak Securities website or through your Kotak dealer. Perfect for emergencies, when you do not have the luxury to hunt for a buyer for your physical gold.
Quality control
There’s no 100% guarantee of the purity of the gold that you buy at your local jeweler. However, with Gold ETFs this becomes a non-issue as Gold ETFs invest in 99.5% pure gold only.
Cheaper
Physical gold comes with making charges that can’t be recovered, the cost to securely store it and also the cost to insure it. These factors limit the amount of physical gold you can own. With Gold ETFs, the costs of buying and selling are much lower and there is no cost of storage or security involved.
Diversify your portfolio
As mentioned earlier, gold brings stability and assured returns to a portfolio. Use it to hedge your risks on the equities, derivatives and mutual funds in your portfolio.
Save on Wealth Tax
Physical gold attracts the tax man in the form of Wealth Tax. You will not have this problem with Gold ETFs.
Long Term Capital Gains Tax
You need to pay Long Term Capital Gains Tax on physical gold 3 years after the date of purchase. In the case of Gold ETFs this period is reduced to just 1 year.

+ Expand AllFrequently Asked Questions (FAQs)

QWho is eligible to invest in Gold ETFs?
A
Following categories are eligible for investment in ETFs:
- Individuals (Residents/NRI (NRE & NRO both)
- Corporates
- Institutions
QWhat are the costs involved in buying / selling a Gold ETF?

ASince ETFs are listed & traded on exchange, the cost to an investor accrues only in the form of brokerages, management fees & taxation.

QWhat are the taxation effects of trading in Gold ETFs?

Please note below the tax implication associated with investment in ETF:

Parameter	Gold ETF	Index ETF	International ETF	Sector Specific ETF
Wealth Tax	Nil	Nil	Nil	Nil
Short Term Capital Gains Tax	As per the Income Tax Slab	15%	As per the Income Tax Slab	15%
Long Term capital Gains Tax	10% without indexation or 20% with indexation	Nil	10% without indexation or 20% with indexation	Nil
Securities Transaction Tax (STT)	Nil	0.125% *	Nil	0.125% *

Stock Market Sectors : A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | R | S | T | V | W |

About Us

Asset Classes

Derivatives Market

Investment Knowledge Bank

CUSTOMER CARE Chat with us
77389 88888WhatsApp Chat
(Add city STD code while calling from Mobile)

TIME:
Customer Service:- Mon to Fri – 9.00 AM TO 6.00 PM
Call and Trade:- Mon to Fri – 8.30 AM TO 5.30 PM

For Call & Trade, dial 080 4725 3255
Write to us at service.securities@kotak.com for Trading Account-related queries and ks.demat@kotak.com for Demat Account-related queries

Connect with us

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Attention Investors Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSE/INSP/27436, BSE - 20140901-21

Kindly note that as per NSE circulars nos: NSE/INVG/36333 dated November 17, 2017, NSE/INVG/37765 dated May 15.2018 and BSE circular nos: 20171117-18 dated November 17, 2017, 20180515-39 dated May 15.2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. In case of any queries, request you to kindly get in touch with Customer Service on 18002099191/9292

Kotak securities Ltd. having composite licence no.CA0268 is a Corporate Agent of Kotak Mahindra Life Insurance Company Limited and Kotak Mahindra General Insurance Company Limited. We have taken reasonable measures to protect security and confidentiality of the Customer information.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.
The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Please do not share your online trading password with anyone as this could weaken the security of your account and lead to unauthorized trades or losses. This cautionary note is as per Exchange circular dated 15th May, 2020.

Note: NSDL and CDSL have mapped Unique Client Codes (UCC) to demat accounts based on PAN, refer NSDL and CDSL circulars. Format for linking/delinking the UCC: NSDL: link | CDSL: link.

Clients are required to keep all their account related information up-to-date including details like email id, mobile number, address, bank details, demat details, income details etc. which will help the client to timely receive any information and to avail the various facilities relating to the Trading and Demat account. To update the details, client may get in touch with our designated customer service desk or approach the branch for assistance.

Investor Awareness regarding the revised guidelines on margin collection:-
Attention Investors :
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020, notice no. 20200731-7 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020, notice no. 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
.......... Issued in the interest of Investors

Clients are hereby cautioned not to rely on unsolicited stock tips / investment advice circulated through bulk SMS, websites and social media platforms. Kindly exercise appropriate due diligence before dealing in the securities market.

Requirement of obtaining consent through OTP has been waived for off market transfer reason code “Implementation of Government / Regulatory Direction / Orders” Consent through OTP would continue to be required for all other reasons for any off-market transfers. Refer NSDL circular.

Covid-19 impact to clients:-
1. Applicable to clients on whose email id contract notes and other statements get bounced or who have opted for Physical contract notes/ other statements or Digital and Physical contract notes/ other statements :Due to the nationwide lockdown, we are unable send physical contract notes and other statements. To view them, log into www.kotaksecurities.com
2. Kindly update your email id with us to receive contract notes/various statements electronically to avoid any further inconvenience.
3. We are unable to issue the running account settlement payouts through cheque due to the lockdown. We request you to update your Bank account details to facilitate direct transfer to your linked bank account. You may approach our designated customer service desk or your branch to know the Bank details updation procedure.
4. Exchange advisory: Investors are advised to exercise caution while taking investment decisions in these unpredictable times. Clients are also encouraged to keep track of the underlying physical as well as international commodity markets. Clients are advised to undertake transactions after understanding the nature of the contractual relationship into which they are entering and the extent of its exposure to risk. Clients are further advised to follow sound risk management practices and not to be carried away by unfounded rumors, tips etc.

Filling complaints on SCORES- Easy & Quick
a. Register on SCORES portal | b. Mandatory details for filling complaints on SCORES i. Name, PAN, Address, Mobile Number, E-mail ID | c. Benefits: i. Effective Communication ii. Speedy redressal of the grievances

Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. Telephone No.: +22 43360000, Fax No.: +22 67132430.
Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 42856825.

CIN: U99999MH1994PLC134051. SEBI Registration No: INZ000200137(Member of NSE, BSE, MSE, MCX & NCDEX), AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586.

NSDL/CDSL: IN-DP-NSDL-23-97

New To share Market?

Open Your Account Today!

Submit

Please Note

That by submitting the above mentioned details, you are authorising Kotak Securities & its sub-brokers & agents to call you and send promotional communication even though you may be registered under DNC.

Open An Account