Gold BEes is a fixed equity ETF that is passively managed. The fund's returns are similar to those of gold before accounting for expenses and other charges associated with ETFs. These are ETFs and are therefore available for trading on the stock exchange. Gold ETFs have no exit charges, while gold mutual funds charge an exit charge when their shares are redeemed within a year.
Gold mutual funds allow investments in SIPs, while the same is quite cumbersome in gold ETFs. Gold BEEs focus on providing returns close to physical gold. Invest exclusively in top quality gold with a purity of 99.5%. Gold BEE are fixed equity funds that are traded on exchanges.
These funds are tracked to provide returns to their benchmark: domestic gold prices. The composition of the underlying portfolio of a Gold BEE includes physical gold and money market instruments, such as treasury bills, certificates of deposit, etc. The beta version shows the portfolio's risk in relation to the market. A beta lower than 1 means that the fund's return is less volatile compared to the market in general.
A beta greater than 1 means that the fund's return is more volatile than that of the markets in general. A beta of 1 means that the fund's volatility is in line with that of the market in general. There are some brokerage firms that allow investors to buy gold ETF units at regular intervals. Investors can also choose a third option where they can safely and securely invest in digital gold and buy gold in denominations as low as 500 rupees with Motilal Oswal.
Nowadays, you can invest in gold in several ways, such as investing in gold ETFs, gold mutual funds, and buying physical gold at the nearest retailer. As of June 30, Nippon India's Gold BEE ETF had a 99.49 percent exposure in gold with 995 1 KG gold ingots. Investing in gold ETFs is ideal for people who seek gold from an investment point of view rather than using it for jewelry or personal use. Gold ETFs are better suited for liquidity; however, as an alternative, sovereign gold bonds can also be considered.
Before joining Nippon India Mutual Fund, he worked at Nippon Life India AIF Management Limited, Reliance Capital Limited, Gold Matrix Pte, Vedanta Group, Zee Gold Refinery (Shirpur Gold Refinery), N. Most of the time, the collapse of stock markets is often accompanied by a spike in gold prices, which explains why gold is compulsorily included in many portfolios as a hedging asset. The difference between a gold ETF and a gold fund will help investors determine which investment vehicle best suits them. Gold BEE can be purchased starting at a quantity of 0.01 grams, while SGB can be purchased at 1 gram and only in multiples of 1 gram.
The investment objective of Nippon India's Gold BEes ETF is to provide returns that, before expenses, closely correspond to the returns provided by the domestic price of gold through physical gold. Gold ETFs are publicly traded and the only role of a fund manager in these plans is to buy gold bars and deposit them in the hands of the plan's depositary. Thanks to the increase in the price of gold, which has benefited many investors exposed to gold. Unlike physical gold, owning gold in the form of an ETF (exchange-traded fund) is much more convenient.