The market has been in an uptrend since hitting a bottom in the month of March. However, when the stocks were beaten down, one asset class that had drawn huge attention was gold ETF. This particular fund was in spotlight because gold prices had zoomed. Since then they have lost their shine just a bit!
For savvy investors this offers a good opportunity to enter these schemes at a lower price level with their NAV (net asset value) having fallen. You can sure consider gifting someone gold ETFs.
ETFs are quite similar to a mutual fund scheme. Instead of investing the corpus in equity shares, the money collected is invested in gold. There are schemes on offer from Kotak, Reliance, UTI, Quantum and SBI mutual fund for buying gold ETFs. Unfortunately, investors are still unaware of buying and gifting gold in the electronic form. If you strike early, it will make a worthwhile present.
Buying gold in electronic form requires a shift in mindset, something which shouldn’t be difficult considering most of us already possess other valuable assets in a similar form. As tax consultant Sandeep Shanbhag mentions in a recent article, ‘Think of the money lying in a bank account. Whether Rs 10,000 or Rs 10 lakh or a crore, it’s your bank passbook that indicates the amount you own.
“Similarly, not too long ago, physical share certificates were required to be delivered and kept. Then we gradually shifted to electronic holding. An investor’s life thus became more convenient. Similarly, gold too can be owned in the dematerialized, electronic form. It is a safer and more efficient way to own it.”
As we have mentioned above, there are many good schemes on offer from reputed fund houses. If you can gift gold ETFs to someone dear to you, the glitter of gold will remain with the person forever and add to his or her wealth as well.