Thank you! You can examine the buy-sell spread on your trading account (Zerodha, Groww, Upstox etc.). Here's how: 1. Search for the gold ETF of your choice 2. Look at the bid and ask prices i.e. the highest price that someone is willing to pay to buy the ETF & similarly, the lowest price that someone is willing to accept to sell the ETF 3. Calculate the spread. So that's (Ask Price - Bid Price) 4. Then the percentage spread i.e. Spread / Ask Price * 100
Sir apart from your financial wisdom, you managed to entertain as well. I loved the way how you were just grooving to Sona kitna Sona hai..Loved watching it. That was unexpected. It brought a big smile on my face
Great video. And yes, one should always have some exposure to gold along with equity. I feel gold etfs are the best options because of liquidity and lower costs. Keep doing small amount of SIP and put lumpsum amounts when price falls.
Iam just wondering in case of if there will be a liquidity issues. I remember during covid time when I had to exit my gold bees to buy nifty ETF I had saw i had pay a large spread to exit gold bees.@@shankarnath what do you suggest for that . Since then I wonder if gold bees are really a hedge during a blackswan event because of liquidity issues only during that event. Unfortunately couldn't find a better option too cost wise.
@shankarnath Dear Shankar, I read a few websites and other RUclips channels...they say 1 g gold = 1 unit Gold ETF. But you have mentioned, 1 g gold = 100 units Gold ETF I find your statement make more sense, but Please clarify. It will be very helpful
@@alankrithramesh7282 Hello. Yes, please do enquire from the other websites (if they respond) on why their assertion that 1 gram of gold is 1 unit of Gold ETF. Ofcourse this might be specific to their scheme -- that can't be ruled out I've referred to this PDF -- www.icicietf.com/static/media/icici-prudential-gold-etf.be9c64a3390e65c38798.pdf -- where it says "Each unit of the Scheme (before expenses) will closely correspond to the value of 1/100th of 1 gm of domestic gold prices derived from the LBMA AM fixing prices" You can search for this line in the PDF
SBI Gold ETF & Nippon India ETF Goldbees. No particular reason for two of them, I don't bother with one AMC over the other when it comes to index based instruments
Good video Shankar! 👍🏼 My questions: Q. As per Income tax act, an Indian male can hold upto 500 gms of physical gold (correct me if I'm wrong). So if I invest in a Gold ETF with an SIP mode (for many years) upto 500 gms, and when need be I sell ETF and buy physical gold of that amount. So would it make sense converting from ETF to Physical, considering the charges and difference in price that may prevail? Q. Is there any limit on how much can one invest in gold through ETFs? Q. What are Trailing returns and Rolling returns?
Thanks. I don't know the answer to Q1, sorry 2. I haven't come across a maximum limit when investing in Gold ETFs 3. Pls read this article on annual v trailing v rolling returns -- www.etmoney.com/learn/mutual-funds/annual-vs-trailing-vs-rolling-returns-meaning-calculation-importance/
Shankars analysis...is always awaited,your way of communication is very soothing and captivating... Sir whats better_ buying gold(etf) in lumpsum or via sip..or shall we buy coins
Thank you 1. Please invest in the method that suits you. If you are investing for the long-term, these mental distortions will not matter. 2. I don't know anything about coins
Dear Shankar nath, as on one of your video you created a screener on ticker-tape for value-momentum investing, if possible kindly create a screener on trendlyne for the same, for long term investment by either monthly/ quarterly/ yearly rebalance. Will be great helpfull for us. Thanks in advance 🎉
Though I'm not a fan of Gold, I think this is a great video. Great work as always! :) Just wanted to ask: do you have any plans on covering individual stocks on this channel? Like you cover them on your blog and newsletter? Thanks! 😊
Hello Sir . Is it okay to go with gold mutual fund as the expense ratio is 0.1% and we can sip in fund rather than holding in demat as the stickiness is high in MF Than Demat account?
Hello. It's OK to go for Gold MF also but please note, the expense ratio is not 0.1%. The correct expense ratio is 0.1% + the expense ratio of the underlying golf ETF. However, if you find gold MF more convenient then go for it, no need to calculate to the last decimal point unless you are planning to invest over 1 crore worth
Investing & understanding wat is wat is rbi retail site is difficult , can u possibly make a video on how to figure out wat is wat instrument to invest in rbi retail
If we simply put then any gold etf would do. Although the video is obviously promoting groww gold etf, all Gold etfs are almost similar with one factor to consider which is liquidity. It's wise to go wth ETFs havng higher volumes. Goldbees and TataGold etfs have great volumes, and so does this Groww Gold ETF.
@@shankarnaththank you sir . Now clear A Gold ETF (Exchange-Traded Fund) and Goldbees are both investment options that allow investors to gain exposure to gold, but they differ in some key aspects: 1. Gold ETF • What it is: A Gold ETF is an exchange-traded fund that tracks the price of physical gold. It allows investors to buy units of the ETF, which are backed by gold. • How it works: When you invest in a Gold ETF, you’re essentially buying a share that represents ownership of gold held by the fund. • Liquidity: High liquidity as they are traded on stock exchanges. • Expense Ratio: Typically lower expense ratios compared to mutual funds, though they may vary depending on the ETF. • Examples: SBI Gold ETF, ICICI Prudential Gold ETF, etc. 2. Goldbees • What it is: Goldbees is a specific Gold ETF, managed by Nippon India (previously Reliance Mutual Fund), that tracks the domestic price of physical gold. • How it works: Like other Gold ETFs, Goldbees allows investors to own units that are equivalent to a portion of physical gold without having to hold the metal themselves. • Liquidity: As Goldbees is a popular and widely traded ETF, it generally has good liquidity. • Expense Ratio: Goldbees has one of the lower expense ratios in the gold ETF space, making it a cost-effective option for investors. • Tracking Efficiency: Since Goldbees is a well-known and widely traded product, it closely follows gold price movements with minimal tracking error. Key Differences: • Gold ETFs is a general category, while Goldbees is a specific product within that category. • Goldbees is known for its low expense ratio and popularity in India. • Different Gold ETFs may have different expense ratios, liquidity, and tracking error, but Goldbees typically offers cost advantages. In essence, if you’re looking for a Gold ETF, Goldbees is one of the more affordable and liquid options available.
Physical gold has always been traded at a premium. This might be because of the extra charges ( like making gold bars / coins), handling charges, tax etc...
Immediate accessibility is the most crucial requirement with emergency money. I don't think Gold ETF fits there. I myself prefer some money at home in cash, my savings account and my credit card -- these give me fastest access to money
Can u elaborate the reasons for the difference in price of Rs 1000 per gram between the physical gold's landed cost (incl customs duty, GST etc) and the present NAV of any Gold ETF price (for redemption) in the Market.
@shankarnath, would it possible for you to make a video on corporate actions in context of corporate governance especially when they are not shareholder friendly like warrant issue to be convertable at lower than market price, preferential allotment to promoters of subsidiary share at discount, restructuring of business by diluting common shareholder's equity, asset transfer or sale to promoter controlled entity and many others in same context. And how & where to know about them...with an idea to gauge management quality.
Thx. I haven't analysed silver lately but I see that the gold-silver ratio is at a peak -- which is good for silver investment. My best guess -- yes, have that 2.5% in silver
I haven't analyzed Silver yet. But from what I've read, the Gold-Silver ratio is at it's highest which augurs well for Silver. Pls read up more on this
Nothing is less or more superior -- and generalizing is not really recommended. I mean -- it's the scenarios that you create which determines any asset's utility. For example - a) Say the investment horizon is 2 years -- I'll go for Gold ETF b) I want to use Gold for optimizing my portfolio every year (I personally do this). Again SGB or Gold ETF to do that? -- I'll go for Gold ETF c) Want to keep invested in Gold for the next 4 years -- I would have gone for SGB but alas, no new tranches have come up in last 9 months so I'll have to buy from secondary market where presumably the SGB discount is reduced now or it may even be at a premium -- I'll be a little confused now
@@shankarnath Thanks Sir for the reply, i completely agree on that investment horizon matters but there’s some highly liquid SGBs which are available at discount than FMV
@@AjayKumar-fh2xn Yes, I'm quite aware of it. I even made a video on these SGB discounts with tons of calculations. Amit Wani has a useful website -- SGB Analyzer & I collaborated with him on that
Hello. 1. Most brokerage platforms allow SIP in ETFs. Can you pls check on the Internet for the process 2. For the exact amount, you can check the Gold MF and the corresponding ETF's expense ratio. You should get both in most platforms like valueresearchonline, Groww, IND Money etc.
Thanks! It's a very generic question but to shed some light, if you plan to trade say 10-20 lakhs a day, liquidity shouldn't be an issue. Gold ETFs cumulatively do around around 100 crores of volumes. You can check on www.nseindia.com/market-data/exchange-traded-funds-etf
@@shankarnath That is really good point. Thanks. It's been so long and I invested when it was first launched. I checked historical and gold price at that time was 9300.
Kindly suggest which series is available in secondary market with there to four year maturity in secondary market Is it advisable to buy till maturity to avail tax benefit Thanks
Hello. Pls refer to SGBanalyzer.com for details on different series available in the secondary market including tenure remaining. You can refer to my video on SGB aswell for insights specific to your question
Hello. More than the exchange, please check out the volumes of specific Gold ETFs. The same can be examined here: www.nseindia.com/market-data/exchange-traded-funds-etf (Ctrl+F .. Gold)
Sir, can explain why BLS international is going down. After the acquisition of the company it goes down every day... Pls inform any -ve development happened
Pls examine news and corporate announcements relating to the company for any positive and negative developments. Post your 1st level of research and your discovery, we can discuss this on this thread.
@@shankarnaththanks. Also I would like to know if it is better to invest in NFO or in the existing GoldETFs that is there? Are there any added benefits or NFOs or should we go for the existing ones?
@@khalshubh Maybe I can answer that better when I'm closer to starting my own smallcase. It'll take a few months but before that I will subscribe to 2-3 smallcases just to understand the experience, issues etc. I'll circle back on your query then
@@shankarnath Great to know that you will research on them sir , it will be very much helpful to us like your other videos and newsletters. Will be waiting for your reply.
Pls be careful when evaluating SBI Gold MF from an expense ratio standpoint. I have explained it in a previous video wherein how certain funds declare only their expense ratio and not the expense ratio of the underlying asset which in this case is the SBI Gold ETF. So basically, the total expense ratio of SBI Gold Fund is a) 0.10% plus b) expense ratio of SBI Gold ETF
Sir, your comparison table makes no mention about the physical stuff having no counterparty risk and that the paper form is in the system.. all or most of our investments are in the system, perhaps some of it should be in physical form in case there is a glitch in the system?
That depends on your investment/trading duration, if you want to keep for longer period say 1 year plus, go with mutual funds. ETFs are good for trading and switching assets say gold to equity if there's a market crash, and you want to take advantage of the opportunity; whereas mutual funds would take 3-7 days to redeem your money, in that case it may cause you the loss of opportunity to capitalize on equity market crash. Also taking out money is quick for etfs 2 days (You get the margin of sold etfs the same day in trading account, which can be withdrawn the next day to your bank account) vs 3-7 days for the money to be credited in your bank account.
Many thanks Shankar for one more 'golden' video. Couple of doubts, if I may: A. Generally ETF investing is encouraged thru order investing than market purchase / rate to avoid surprises B. Is lumpsum investment strategy in gold differs with lumpsum in equity eg, high valuation etc.. Many thanks for your thoughts.
Most welcome 1. Yes, you should do what's more comfortable to you. Gold ETFs do transactions worth about 100 crores a day so market purchase should be OK unless you're in with a very low volume instrument because then you might not get the price you saw on the board. For volumes, pls check here -- www.nseindia.com/market-data/exchange-traded-funds-etf 2. No, lumpsum investing in gold is very similar to equity. They are both a bit volatile on prices (gold is a little less i.e. drawdowns are lower -- I showed it in the video where I explained rolling returns). I'm not sure where valuation fits in with gold
I don't think the tax rules of India exempt us from paying taxes if one buys & sells gold in physical format. Curious to know -- are you doing it yourself? Appreciate if you can share some specifics
@@shankarnath appreciate your prompt reply. What information I have is that when you buy physical gold in form of coins , you pay 3% GST . And when you sell it, you are losing Rs 300-500 per 10 gram. If you can check this information it will be great. I too bought gold in EFT in past. But I doubt it will be good for future as government can change taxation any time and our profits will dip. Please do reply. Thanks a lot.
Dude, the ltcg of 12.5% applies to all types of gold... Both physical or digital gold... You are actually saying this because you are selling physical gold and asking cash from the shop guy and hence you have the option to do JUGAAD by not declaring the profit during IT returns Ask questions with clarity... If someone reads your comment, he will think that only ETF has ltcg and physical gold selling has no tax... But that's not the case
@@TimeTested. My understanding is this -- if physical gold is sold after 2 years, then tax on LTCG is payable at 12.5% and if sold within 2 years, then STCG i.e. per individuals’ income slab rate applies. Gold ETF taxation is a bit better as in the tax on LTCG is still 12.5% and on STCG remains at income tax slab -- but the holding period is 1 year here. Either way you have to pay taxes
If I understand your question correctly, DICGC is Deposit Insurance and credit guantee corporation promoted by RBI under Finmin. Banks pay specific premium to DICGC (mandatory by regulation) and get insurance of max Inr 5 lacs per depositor per bank. This is my basic understanding and hope this helps🙏
The issue happens when a bank is under trouble or under prompt corrective action. RBI might allow part withdrawals till other plans for the bank could materialise. The claim settlement time shall be longer based on the crystallisation of the corrective action. One should be prepared for such long time but drposit money upto 5 lacs shall be received eventually . Meanwhile if it is allowed (generally it is) take an overdraft against such FD (low net interest cost). Atleast 75 to 90 pct of FD money shall be with you in case you need it, before settlement.
In continuation of the above trail, RBI FAQ of Nov 25, 2008 mentions claim settlement either (1) pay the liquidator, claim amt of each depositor upto 5 lacs within 2 months from the date of receipt of claim list from liquidator (2) in case of a merger of a bank with another bank, the difference between the full amt of deposit or the limit of insurance cover at that time, whichever is less and the amt received by depositor under the reconstruction / amalgamation schme within two months from the date of receipt of claim list from the transferee bank / insured bank as the case may be.
Can you post a video on unit creation ? Responsibility of Fund Houses and SEBI for poor volume in some ETFs and Not able to sell an ETF ? Afterall somewhere some one should be accountable as huge number of retail investors are investing their hard earned money, thinking its safe. Is there any regulatory authority who can be approached to compell fund houses to creat new units and ensure liquidity ? Please make a video on this . Thanks in advance.
you should also talk about the liquidity risk when choosing ETFs. NFO of Gold ETFs (e.g. - Groww) might not be a great time to invest since there is no knowledge of the liquidity it will offer.
Mr Shankar Nath, & Mr Alok Jain, (who are strong proponent of Gold,) - theirs every videos are undoubtedly - of pure 24 Carat Gold
Thank you very much. Glad you like my work 🙌
Alok sir army 🙌🏻
Demat application for buying gold efts form on line
I have bought gold ETF on Laxmi Punjan day, last diwali. It has made a return of 24% till date.
This is pure gold indeed!! As usual you’ve put your points across in simple and easy terms
Thank you so much!
You look so much honest, sincere and committed in your presentation. I have become a fan of yours.
Thank you so much 🙂
Clear and crisp.
What’s the exact spread on ETF buy sell, need example based on actual market rate?
Thank you! You can examine the buy-sell spread on your trading account (Zerodha, Groww, Upstox etc.). Here's how:
1. Search for the gold ETF of your choice
2. Look at the bid and ask prices i.e. the highest price that someone is willing to pay to buy the ETF & similarly, the lowest price that someone is willing to accept to sell the ETF
3. Calculate the spread. So that's (Ask Price - Bid Price)
4. Then the percentage spread i.e. Spread / Ask Price * 100
Mr. Shankar Nath, Thanks for your detailed analysis.
My pleasure
Sir apart from your financial wisdom, you managed to entertain as well. I loved the way how you were just grooving to Sona kitna Sona hai..Loved watching it. That was unexpected. It brought a big smile on my face
So nice of you :) .. My generation was brought up watching David Dhawan movies. Next up -- Shola Aur Shabnam and then Andaz Apna Apna
Great Fan of yours Watching you since you were part of ETmoney
Thank you very much for your support 🙌
Found your video informative and so simply explained
Glad you liked it 🙌
Great video. And yes, one should always have some exposure to gold along with equity. I feel gold etfs are the best options because of liquidity and lower costs. Keep doing small amount of SIP and put lumpsum amounts when price falls.
Thank you. I too use Gold ETFs but still hold my earlier stash of gold mutual funds
Iam just wondering in case of if there will be a liquidity issues. I remember during covid time when I had to exit my gold bees to buy nifty ETF I had saw i had pay a large spread to exit gold bees.@@shankarnath what do you suggest for that . Since then I wonder if gold bees are really a hedge during a blackswan event because of liquidity issues only during that event. Unfortunately couldn't find a better option too cost wise.
I unit of gold ETF = 1/100 gram of Gold is a very useful information. Very practical info to know how much value we hold in real world. Thank you
Glad it was helpful!
@shankarnath
Dear Shankar,
I read a few websites and other RUclips channels...they say 1 g gold = 1 unit Gold ETF.
But you have mentioned,
1 g gold = 100 units Gold ETF
I find your statement make more sense, but
Please clarify.
It will be very helpful
@@alankrithramesh7282 Hello. Yes, please do enquire from the other websites (if they respond) on why their assertion that 1 gram of gold is 1 unit of Gold ETF. Ofcourse this might be specific to their scheme -- that can't be ruled out
I've referred to this PDF -- www.icicietf.com/static/media/icici-prudential-gold-etf.be9c64a3390e65c38798.pdf -- where it says "Each unit of the Scheme (before expenses) will closely correspond to the value of 1/100th of 1 gm of domestic gold prices derived from the LBMA AM fixing prices"
You can search for this line in the PDF
Are you sure that each unit of Gold ETF is backed up by physical Gold ?
This video came on right time, was researching Gold ETF and assets allocation. Great
Great to hear!
Excellent Video, Nicely explained. I had some allocation in GOLD ETF, but after watching this Video will increase the allocation to 10% at least
Glad you found it informative 🙌
Sir which etf your holding
SBI Gold ETF & Nippon India ETF Goldbees. No particular reason for two of them, I don't bother with one AMC over the other when it comes to index based instruments
@@shankarnaththank you sir for your kind reply, but expense ratio should it be considered
Good video Shankar! 👍🏼
My questions:
Q. As per Income tax act, an Indian male can hold upto 500 gms of physical gold (correct me if I'm wrong). So if I invest in a Gold ETF with an SIP mode (for many years) upto 500 gms, and when need be I sell ETF and buy physical gold of that amount. So would it make sense converting from ETF to Physical, considering the charges and difference in price that may prevail?
Q. Is there any limit on how much can one invest in gold through ETFs?
Q. What are Trailing returns and Rolling returns?
Thanks. I don't know the answer to Q1, sorry
2. I haven't come across a maximum limit when investing in Gold ETFs
3. Pls read this article on annual v trailing v rolling returns -- www.etmoney.com/learn/mutual-funds/annual-vs-trailing-vs-rolling-returns-meaning-calculation-importance/
Shankar you have been informative as always. Congrats. A suggestion - we can add the taxation in the comparison chart.
Thank you. Sorry about that, since comparison based on taxation was already made available in an earlier video on Gold, I didn't repeat it.
Shankars analysis...is always awaited,your way of communication is very soothing and captivating...
Sir whats better_ buying gold(etf) in lumpsum or via sip..or shall we buy coins
Thank you
1. Please invest in the method that suits you. If you are investing for the long-term, these mental distortions will not matter.
2. I don't know anything about coins
Thank you for another valuable video sir.
My pleasure. So nice of you!
Do you think managing asset allocation difficult between gold, equity and debt ? Is holding 5% into gold help rathar if just hold 80% equity 20% debt
Shankar Nath⭐
Thank you 🙌
Dear Shankar nath, as on one of your video you created a screener on ticker-tape for value-momentum investing, if possible kindly create a screener on trendlyne for the same, for long term investment by either monthly/ quarterly/ yearly rebalance. Will be great helpfull for us. Thanks in advance 🎉
Thanks for the suggestion
❤@@shankarnath
Kindly find a time to develop the trendlyne Screener as said and post/ educate us @@shankarnathWill be great full to you a lot
Though I'm not a fan of Gold, I think this is a great video. Great work as always! :)
Just wanted to ask: do you have any plans on covering individual stocks on this channel? Like you cover them on your blog and newsletter?
Thanks! 😊
Thank you. Glad you liked my work. I haven't thought of adding stocks to RUclips. My initial thought was -- text can be updated but videos can't.
Hello Sir . Is it okay to go with gold mutual fund as the expense ratio is 0.1% and we can sip in fund rather than holding in demat as the stickiness is high in MF Than Demat account?
Hello. It's OK to go for Gold MF also but please note, the expense ratio is not 0.1%. The correct expense ratio is 0.1% + the expense ratio of the underlying golf ETF. However, if you find gold MF more convenient then go for it, no need to calculate to the last decimal point unless you are planning to invest over 1 crore worth
What does the last line mean for the offer price of the NFO, Do i have to subscribe it via Groww only to have the offer or can i use zerodha too.?
NFO application will be via GrowwMF website. Once the NFO is done and units get open to buy/sell for public, then you can use Zerodha Kite
Thank you Sir
Most welcome
Investing & understanding wat is wat is rbi retail site is difficult , can u possibly make a video on how to figure out wat is wat instrument to invest in rbi retail
What should we prefer - Groww Gold ETF or GoldBEES?
If we simply put then any gold etf would do. Although the video is obviously promoting groww gold etf, all Gold etfs are almost similar with one factor to consider which is liquidity. It's wise to go wth ETFs havng higher volumes. Goldbees and TataGold etfs have great volumes, and so does this Groww Gold ETF.
Hello Sir what is the difference between goldbees and gold etf?
It's the same category. Try putting in a query on ChatGPT to see if there is a difference, it will be a good experiment
Goldbees is gold etf
@@shankarnaththank you sir . Now clear
A Gold ETF (Exchange-Traded Fund) and Goldbees are both investment options that allow investors to gain exposure to gold, but they differ in some key aspects:
1. Gold ETF
• What it is: A Gold ETF is an exchange-traded fund that tracks the price of physical gold. It allows investors to buy units of the ETF, which are backed by gold.
• How it works: When you invest in a Gold ETF, you’re essentially buying a share that represents ownership of gold held by the fund.
• Liquidity: High liquidity as they are traded on stock exchanges.
• Expense Ratio: Typically lower expense ratios compared to mutual funds, though they may vary depending on the ETF.
• Examples: SBI Gold ETF, ICICI Prudential Gold ETF, etc.
2. Goldbees
• What it is: Goldbees is a specific Gold ETF, managed by Nippon India (previously Reliance Mutual Fund), that tracks the domestic price of physical gold.
• How it works: Like other Gold ETFs, Goldbees allows investors to own units that are equivalent to a portion of physical gold without having to hold the metal themselves.
• Liquidity: As Goldbees is a popular and widely traded ETF, it generally has good liquidity.
• Expense Ratio: Goldbees has one of the lower expense ratios in the gold ETF space, making it a cost-effective option for investors.
• Tracking Efficiency: Since Goldbees is a well-known and widely traded product, it closely follows gold price movements with minimal tracking error.
Key Differences:
• Gold ETFs is a general category, while Goldbees is a specific product within that category.
• Goldbees is known for its low expense ratio and popularity in India.
• Different Gold ETFs may have different expense ratios, liquidity, and tracking error, but Goldbees typically offers cost advantages.
In essence, if you’re looking for a Gold ETF, Goldbees is one of the more affordable and liquid options available.
That's lovely one
Thank you! 🙏
Thank you for the valuable content. One question: Why is the gold ETF price lot lower than the physical gold price?
Can you share some numbers in support of this gap pls? Easier to understand
@@shankarnath Nippon Gold Bees Unit Price is 63.54 where as the 24 Carat physical gold is approx 7700 per gram
@@praveen-manne their units are different bro, 7700 is the rate of 1g go gold, whereas 63 is the rate of 1 unit of the mutual fund backing the etc
@@jaypatil2603Thought 1 unit of ETF = 1/100 gm of gold per the video. No?
Physical gold has always been traded at a premium. This might be because of the extra charges ( like making gold bars / coins), handling charges, tax etc...
Hi Shankar, is it good if we put some part of emergency fund in Gold ETF?
Immediate accessibility is the most crucial requirement with emergency money. I don't think Gold ETF fits there. I myself prefer some money at home in cash, my savings account and my credit card -- these give me fastest access to money
Can u elaborate the reasons for the difference in price of Rs 1000 per gram between the physical gold's landed cost (incl customs duty, GST etc) and the present NAV of any Gold ETF price (for redemption) in the Market.
I wonder "What would be the ideal mix of Equity+Debt+REIT+Gold"?
50% equity + 5% debt + 15% reit + 30% gold
Watch Weekend Investing video released today on the same topic 😊
@shankarnath, would it possible for you to make a video on corporate actions in context of corporate governance especially when they are not shareholder friendly like warrant issue to be convertable at lower than market price, preferential allotment to promoters of subsidiary share at discount, restructuring of business by diluting common shareholder's equity, asset transfer or sale to promoter controlled entity and many others in same context.
And how & where to know about them...with an idea to gauge management quality.
Thanks for the suggestion
What are the top 5 gold etfs ?
I do see many consider Nippon in top 5, but its expense ratio is very high. :(
Please use valueresearchonline.com to filter out your top 5 based on different criteria. I personally don't see much of a difference
Excellent video and analysis Shankar sir. Can we also consider adding 2.5% Silver in portfolio along with 5% Gold?
Thx. I haven't analysed silver lately but I see that the gold-silver ratio is at a peak -- which is good for silver investment. My best guess -- yes, have that 2.5% in silver
What is you view on Silver ? With so many funds launched how to divide between Gold and Silver.
I haven't analyzed Silver yet. But from what I've read, the Gold-Silver ratio is at it's highest which augurs well for Silver. Pls read up more on this
For a newcomer how much alloxation is good for gold etf like 50000/- or more ?
Is idbi gold etf good in ur opinion?
How is groww gold etf nfo? should I apply for it?
How SGB are less superior than ETF, infact its a lot superior than any other form of gold investment
Nothing is less or more superior -- and generalizing is not really recommended. I mean -- it's the scenarios that you create which determines any asset's utility. For example -
a) Say the investment horizon is 2 years -- I'll go for Gold ETF
b) I want to use Gold for optimizing my portfolio every year (I personally do this). Again SGB or Gold ETF to do that? -- I'll go for Gold ETF
c) Want to keep invested in Gold for the next 4 years -- I would have gone for SGB but alas, no new tranches have come up in last 9 months so I'll have to buy from secondary market where presumably the SGB discount is reduced now or it may even be at a premium -- I'll be a little confused now
@@shankarnath Thanks Sir for the reply, i completely agree on that investment horizon matters but there’s some highly liquid SGBs which are available at discount than FMV
@@AjayKumar-fh2xn Yes, I'm quite aware of it. I even made a video on these SGB discounts with tons of calculations. Amit Wani has a useful website -- SGB Analyzer & I collaborated with him on that
Hello Shankar, But ETF we couldn't start a SIP, can in Gold funds.. What the exact amount difference in Expense ratio of it?
Hello.
1. Most brokerage platforms allow SIP in ETFs. Can you pls check on the Internet for the process
2. For the exact amount, you can check the Gold MF and the corresponding ETF's expense ratio. You should get both in most platforms like valueresearchonline, Groww, IND Money etc.
Sir IAU(us gold Etf) Ka Tax Kia LTCG . Kau Ki IAU Ka Expense Ration bohot kaam hai indian Gold ETF/ Mutual Funds Sai
Hi bro
I have one doubt that while selling do we need to have pay short or long term capital gain tax ?
Hello. This part was covered in the video itself, pls have a watch
Great video sir. Although isnt gold mutual fund better than etf considering liquidity
Thanks! It's a very generic question but to shed some light, if you plan to trade say 10-20 lakhs a day, liquidity shouldn't be an issue. Gold ETFs cumulatively do around around 100 crores of volumes. You can check on www.nseindia.com/market-data/exchange-traded-funds-etf
No talk of liquidity for a new ETF?
Hello Sir, can help to make a detailed video on Private Market Securities Investment options in India please ?
Thanks for the suggestion
Is gold case better than gold etf??
Thanks for this video during this time, Sir.
Regarding asset allocation, is it okay to have 5% exposure to debt & 15% again to gold?
Most welcome. Pls consult a financial advisor for your specific needs. Together you can figure out the ideal allocation
Please make analysis on GPIL Godavari power and Ispat.
Can you share some context? What is the key situation with GPIL you have observed (other than the buybacks)?
Which Gold ETF would be better for low expense ratio and high returns?
Why Nippon gold etf is valued at 64 where as gold is trading at 75 ?
Are you assuming when Nippon Gold ETF started at an NAV of 10 rupees -- on that day Domestic Gold Price was exactly 1,000 rupees per gram?
@@shankarnath That is really good point. Thanks. It's been so long and I invested when it was first launched. I checked historical and gold price at that time was 9300.
Kindly suggest which series is available in secondary market with there to four year maturity in secondary market
Is it advisable to buy till maturity to avail tax benefit
Thanks
Hello. Pls refer to SGBanalyzer.com for details on different series available in the secondary market including tenure remaining. You can refer to my video on SGB aswell for insights specific to your question
Sir which is the best Exchange to buy Gold ETF (BSE or NSE) or should we buy equal quantity from both Exchanges?
Hello. More than the exchange, please check out the volumes of specific Gold ETFs. The same can be examined here: www.nseindia.com/market-data/exchange-traded-funds-etf (Ctrl+F .. Gold)
@@shankarnath Thank You Sir
Thanks for your hard work again, can you please make a video on silver ( for long term investment ) as well ? Thanks in advance, god bless you.
Yes exactly I am also looking for video on silver and who better than Shankar sir to make one
Thanks for the suggestion. I'll try
Gold and silver fof is better or gold and siver etf is better?
Question is simpler...are FoFs better or ETFs
Sir, can explain why BLS international is going down.
After the acquisition of the company it goes down every day... Pls inform any -ve development happened
Pls examine news and corporate announcements relating to the company for any positive and negative developments. Post your 1st level of research and your discovery, we can discuss this on this thread.
How much gold should one have in portfolio. Current 80% into equity 20% into debt
5-10% should be good for most people. I have 4-5%
How abt Silver etf as well?
Can you let me know whether Gold ETF is better or Goldbees?
I think its the same thing. Goldbees is a gold ETF offering by Nippon India. The full form is Nippon India ETF Gold BeES
@@shankarnaththanks. Also I would like to know if it is better to invest in NFO or in the existing GoldETFs that is there?
Are there any added benefits or NFOs or should we go for the existing ones?
One request can u compare gullak gold + as one of the instruments
Thanks for the suggestion
Sir What's your view on smallcases or similar investment instruments which are offered by some of the private companies?
Hello. Sorry, I have no views. Haven't explored them lately.
@@shankarnath Ok Shankar sir btw thanks for the reply
@@khalshubh Maybe I can answer that better when I'm closer to starting my own smallcase. It'll take a few months but before that I will subscribe to 2-3 smallcases just to understand the experience, issues etc. I'll circle back on your query then
@@shankarnath Great to know that you will research on them sir , it will be very much helpful to us like your other videos and newsletters. Will be waiting for your reply.
Difference between Gold ETF and GOLD ETF FOF ?
Pls read: www.smallcase.com/learn/gold-etf-vs-gold-mutual-funds/
Why expense ratio of SBI gold MF cheaper than any other instruments only 0.10%.
Pls be careful when evaluating SBI Gold MF from an expense ratio standpoint. I have explained it in a previous video wherein how certain funds declare only their expense ratio and not the expense ratio of the underlying asset which in this case is the SBI Gold ETF. So basically, the total expense ratio of SBI Gold Fund is a) 0.10% plus b) expense ratio of SBI Gold ETF
@@shankarnath thanks for clarification. Then this is a case of cheating by MFs.
Sir, your comparison table makes no mention about the physical stuff having no counterparty risk and that the paper form is in the system.. all or most of our investments are in the system, perhaps some of it should be in physical form in case there is a glitch in the system?
Yes! That is valid point, which many (experts and investors both) are not talking about! 👍🏼
What are your views on US gold etf investment from India to capture gains in gold price as well as benefit from depreciating rupees in long term
Haven't really looked at this angle. Let me circle back if I find something worthwhile
Soo... According to the video title, is this the perfect time to invest in Gold ETFs?
Yes! I felt short changed after watching the whole video. We need to know if NOW is the right time?!
Sir pls explain TATA gold nse fund of fund
Thanks for the suggestion
ETF ya mutual fund buy kru
That depends on your investment/trading duration, if you want to keep for longer period say 1 year plus, go with mutual funds. ETFs are good for trading and switching assets say gold to equity if there's a market crash, and you want to take advantage of the opportunity; whereas mutual funds would take 3-7 days to redeem your money, in that case it may cause you the loss of opportunity to capitalize on equity market crash. Also taking out money is quick for etfs 2 days (You get the margin of sold etfs the same day in trading account, which can be withdrawn the next day to your bank account) vs 3-7 days for the money to be credited in your bank account.
Hi Shankar, Are Gold ETF's backed with real Gold?
Yes underlying is physical gold 24k
Yes they are. As of Feb 2024, Indian Gold ETFs held almost 45 tonnes of gold ( images.moneycontrol.com/static-mcnews/2024/03/phy-newww.jpg )
@@shankarnath
oh the link doesnt work
@@jhilmil1401 Try again pls
@4:52 - small error here. 1 tola is not actually 10 grams. Its closer to 11 grams.
Many thanks Shankar for one more 'golden' video.
Couple of doubts, if I may:
A. Generally ETF investing is encouraged thru order investing than market purchase / rate to avoid surprises
B. Is lumpsum investment strategy in gold differs with lumpsum in equity eg, high valuation etc..
Many thanks for your thoughts.
Most welcome
1. Yes, you should do what's more comfortable to you. Gold ETFs do transactions worth about 100 crores a day so market purchase should be OK unless you're in with a very low volume instrument because then you might not get the price you saw on the board. For volumes, pls check here -- www.nseindia.com/market-data/exchange-traded-funds-etf
2. No, lumpsum investing in gold is very similar to equity. They are both a bit volatile on prices (gold is a little less i.e. drawdowns are lower -- I showed it in the video where I explained rolling returns). I'm not sure where valuation fits in with gold
00:00 Sona kitna Sona hai😂😂😂. Who else noticed that?
Inke har video me koi na koi film ka dialogue hota hai 😂
Why would you buy gold ETF if you have to pay 12 .5 % tax on profit. Rather buy metal in pieces
I don't think the tax rules of India exempt us from paying taxes if one buys & sells gold in physical format. Curious to know -- are you doing it yourself? Appreciate if you can share some specifics
@@shankarnath appreciate your prompt reply. What information I have is that when you buy physical gold in form of coins , you pay 3% GST . And when you sell it, you are losing Rs 300-500 per 10 gram. If you can check this information it will be great. I too bought gold in EFT in past. But I doubt it will be good for future as government can change taxation any time and our profits will dip. Please do reply. Thanks a lot.
Dude, the ltcg of 12.5% applies to all types of gold... Both physical or digital gold... You are actually saying this because you are selling physical gold and asking cash from the shop guy and hence you have the option to do JUGAAD by not declaring the profit during IT returns
Ask questions with clarity... If someone reads your comment, he will think that only ETF has ltcg and physical gold selling has no tax... But that's not the case
@@TimeTested. My understanding is this -- if physical gold is sold after 2 years, then tax on LTCG is payable at 12.5% and if sold within 2 years, then STCG i.e. per individuals’ income slab rate applies.
Gold ETF taxation is a bit better as in the tax on LTCG is still 12.5% and on STCG remains at income tax slab -- but the holding period is 1 year here.
Either way you have to pay taxes
Shankar sir if possible can you please make a detailed video on DICGC
Thanks for the suggestion
If I understand your question correctly, DICGC is Deposit Insurance and credit guantee corporation promoted by RBI under Finmin.
Banks pay specific premium to DICGC (mandatory by regulation) and get insurance of max Inr 5 lacs per depositor per bank.
This is my basic understanding and hope this helps🙏
But how fast will they settle the claims? Within 24 hours? And what is the procedure to get the claims?
The issue happens when a bank is under trouble or under prompt corrective action. RBI might allow part withdrawals till other plans for the bank could materialise. The claim settlement time shall be longer based on the crystallisation of the corrective action.
One should be prepared for such long time but drposit money upto 5 lacs shall be received eventually . Meanwhile if it is allowed (generally it is) take an overdraft against such FD (low net interest cost). Atleast 75 to 90 pct of FD money shall be with you in case you need it, before settlement.
In continuation of the above trail, RBI FAQ of Nov 25, 2008 mentions claim settlement either (1) pay the liquidator, claim amt of each depositor upto 5 lacs within 2 months from the date of receipt of claim list from liquidator (2) in case of a merger of a bank with another bank, the difference between the full amt of deposit or the limit of insurance cover at that time, whichever is less and the amt received by depositor under the reconstruction / amalgamation schme within two months from the date of receipt of claim list from the transferee bank / insured bank as the case may be.
Can you post a video on unit creation ? Responsibility of Fund Houses and SEBI for poor volume in some ETFs and Not able to sell an ETF ? Afterall somewhere some one should be accountable as huge number of retail investors are investing their hard earned money, thinking its safe. Is there any regulatory authority who can be approached to compell fund houses to creat new units and ensure liquidity ? Please make a video on this . Thanks in advance.
Thanks for the suggestion
Sir
Why not gold bees...
Why we need again through MF ( Actuve or Passive)
Hi, didn't understand the question. Can you pls rephrase it?
@@shankarnath
Sir
Why again in MF's Gold ETF
We can prefer it as Gold bees na...
We can save Expense ratio too.
How many of you think physical gold in form of bars/coins will be better than ETFs???
If u need physically for future use like marriage etc its good else on returns pov go for gold etf or sgb based on ur goals
you should also talk about the liquidity risk when choosing ETFs. NFO of Gold ETFs (e.g. - Groww) might not be a great time to invest since there is no knowledge of the liquidity it will offer.
buy png jeweller is current in discount price with low pe .
Please can you evaluate Reliance.. sharp fall in share price after weak Q2 numbers.. good buy for 2-3 year horizon?
Thanks for the suggestion
Buy gold biscuits.
Sir.. Huge fan.. Can u make a video on irb invit thinking to invest 15 lakh for regular income.. Thank u..
Thanks for the suggestion