Gold BeES is a type of BeES (Benchmark Exchange Traded Securities). It is a type of ETF (Exchange Traded Fund) that's listed on the stock exchanges. This category of funds has a benchmark, in this scenario "Gold" which it tracks and follows. Gold BeEs has its underlying as Gold and the performance of the fund purely relies on the movement of Gold. Find out the advantages and features of Gold BeES.
BeES is the short form of the Benchmark Exchange Traded Scheme. This is an ETF (Exchange-Traded Fund) that sets the underlying asset as the benchmark and gives moves in the same direction as the underlying.
Gold BeES is a form of Bees (Benchmark Exchange Traded Securities) that keeps “Gold” as the benchmark. This moves as per the price of gold in real-time. This can be termed in a form of digital gold that investors can buy without the hassle of buying and storing physical gold.
Gold BeES have more than 97% of their holding in 99.9% pure Gold. Hence one can stay assured that their money is actually getting invested in Gold.
As an ETF there is no minimum amount to invest in gold bees. Gold bees are traded like stocks hence one can buy a minimum of 1 unit which is Rs 41.49 at the time when the price of Gold is Rs 47,000 approximately per 10 grams. There is a small cost on buying Gold bees which is the “Expense ratio” that every investor has to bear as the managing expenses of the fund. The Expense ratio for Gold Bees is 0.82% currently. This might be a tad on the higher side when comparing to some other ETFs but the difference is not significant.
Gold is considered to be a tool of diversification and also as a hedge against “Inflation”. Gold as an asset class retains its value and beats inflation in the long run. Due to this reason, Gold has become the primary choice of investors when there is uncertainty in the Equity Markets.
Therefore it is always wise to allocate some portion of the portfolio towards Gold which will protect the portfolio in times when the “Equity markets” don’t perform that well.
Buying gold in the physical form is not considered the best way of investment. It is due to the fact because there are many charges involved like making charges, GST, Wastage charge, etc. All these changes make the final product and the overall return diminished. Due to all these reasons investing in gold ETFs is the best option.
In conclusion, Gold ETFs is the best way to diversify into gold as it is stored in the Demat account. This ensures the safety and protection of the Gold. Gold ETFs track the price of gold hence one will get the same returns as gold. The high liquidity and flexibility of buying and selling make it an ideal choice, for investors who are willing to invest in Gold.
Similar to traditional Mutual Funds, Fund of Funds are professionally managed funds that are available in multiple types. Some of the types of FoFs are Gold FoFs, ETF FoFs, International FoFs, Multi-Manager FoFs, and Asset allocation FoFs.
Exchange-Traded Funds or ETFs are an investment tool that tracks particular securities like Equity, Commodity, Bonds, etc. ETFs are available for many categories from which one can choose from. These are listed on Stock Exchanges (NSE & BSE) hence there is ample liquidity and one can easily buy and sell these at their desired price during market hours. Some ETFs available for investment in Indian markets are Equity ETFs, Debt ETFs, etc.
ETF is an investment instrument that tracks a group of securities from a particular asset class and performs according to it. It is managed by a Fund manager who makes sure that the ETF tracks the underlying asset accurately. ETFs are listed on the Stock Exchanges therefore one can buy & sell them within the market hours at their desired prices.
We all look to earn good returns on the money we invest. Putting money in High return investments is one way of generating better income. The different places to get good returns are mutual funds, equity, and gold investment in India.
ETFs are a financial instrument made to track an underlying asset and provide similar returns based on the performance of the underlying. ETFs are listed on stock exchanges which make it easier to buy and sell at desired prices. ETFs are not only limited to stocks but cover a wide range of investment avenues like Commodities, Bonds, etc.
Angel Broking and Paytm Money both these platforms are popular among traders. But if you are a beginner or if you want to switch to a new trading platform and you are considering choosing one of these two, and then you came to the right place.
Exchange traded fund is a freely marketable security which tracks a particular index, commodity, bonds or combination of assets. they aren't popular as there is no additional tax incentives, not enough liquidity, under performs most of the time, lack of choices, lack of institutional interest, costs are low but not enough and lack of awareness.
There are multiple avenues through which a 15% p.a. return on investment can be made. These are through equity, mutual funds, fixed deposits, government bonds, and schemes, etc.
Gold is a great investment that acts as a store of value and also as a hedge from inflation. Investing in SGB is the best way to invest in Gold. You can buy these Bonds from Zerodha easily by following some simple steps.
Zerodha is India’s top Discount broker that allows its clients to trade in Equity and Commodities. Equity and commodity are two different asset classes in which you can trade as well as Invest. Know what are equity and commodities in detail.