Are gold etfs safe , is it also like MF ?


Are gold etfs generally safe ? By definition, they just fluctuate according to gold value in the market.

There are kotak, reliance, sbi, quantum, etc that give gold ETF. Since the gold ETFs depend on the value of gold in the market, I presume it doesn’t matter in choosing the etf i.e. kotak or quantum doesn’t metter here.

Is it right ?

Are gold etfs safe , is it also like MF ?
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4 Replies to “Are gold etfs safe , is it also like MF ?”

  1. Yes ETFs are similar to Mutual Funds. Meaning that they are invested in more than one or two assets (stocks, bonds, commodities). However, you probably want to see what portion of the ETF is dedicated to the actual commodity. In other words, what % of the ETF’s allocations are in gold bullion. The rest of the ETF should be made up of gold miners and their infrastructure (drillers, excavators, research and development). Gold ETFs do depend heavily on the price gold and gold contracts but they not solely dependant on that. Any ETF will give you exposure to that market, but you may want to do research to see just how exposed the ETF in question is to the price of the commodity (because you may be better buying stock in a gold mining company).

  2. What you are saying is absolutely right, balaji.

    But I had eared that the investment period needs to be more for gold etfs.
    You can check this out if it is true from any agents.

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