India's best Gold ETF - Stock market investment strategies

Investing in Gold is the safest option because the price of gold is always increasing. whether it is a slowdown or the stock market is booming the prices are always going to go up. There is no better place than India for investing in Gold. This is because the consumption of Gold is almost 25% in India of the total consumption thorough out the world. According to the recent estimates if there is no new gold mine found then with the current comsumption all the Gold would have been extracted in another 9 years time. This makes investment in Gold a very good option.

With the government in India plunging into a minority it can be easily seen why Gold reached all new heights? With the festival season coming up Gold can be expected to scale new heights in the coming months. So why wait, grab a part of the Gold pie today.

Here is the list of Gold ETF's present in the market

Gold benchmark exchange fund (GoldBees)
UTI gold fund (Goldshare)
Quantam gold fund
SBI gold fund
Kotak gold fund
Reliance Gold ETF

Almost all of these are available in the form of ETF's (exchange traded funds). i.e. you can invest in these as if these were normal shares. So if you have a demat account you can invest in these shares.

The next question that comes to mind is which one of these shares is the best to invest in when there are so many options. Lets analyse these shares and then decide on the best ETF.

First lets look at the volumes. This is an indicator of the stability of the stock. The volumes of GoldBees is almost 60% of the total gold shares in India. The main reason for this is GoldBees was the first gold ETF to be ever introduced in India. It was recently acquired by Goldman Sachs.

The other criteria to consider is the expenses that is incurred in the maintenance of the Gold ETF. If you check this also Gold bees scores above the rest. Gold bees maintenance cost is 1% while the close second is Quantum gold ETF with 1.25%. This eats into the profits so this also should be considered while selecting a Gold ETF.

Leaving all the statistics aside, finally what matters is the difference in the performance of Gold ETF over a period of time. If you look at this as well the performance of GoldBees is the best followed by kotak gold ETF.

Another factor to look at is the price of units. This differs for each ETF although all are based on the price of Gold. All ETF is approximately the price of 1gm of Gold except Quantum gold ETF which is half gm of gold. This may not make much difference but for small investors this may be useful information.

Overall GoldBees by far looks the best Gold ETF at present. Kotak, Quantam and SBI look promising. What is your opinion. Any other factors that you would like to discuss while choosing Gold ETF's?

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