NFO Review: Should you invest in the newly launched Edelweiss gold ETF? Here’s what experts say

livemint.com:

The lure of the yellow metal can be unwavering. So much so that many investors ensure to make a significant allocation to gold investments. With the prices of gold constantly fluctuating and even touching a decent bottom in recent years, many investors have started investing in gold exchange-traded funds (gold ETFs). 

For the unversed, gold ETFs have gained widespread popularity as a means of gold investment that eliminates the need to acquire and safeguard the actual precious metal. These financial instruments are listed and traded on prominent stock exchanges, similar to stocks, and provide several benefits compared to owning physical gold, such as

Fractional ownership: Gold ETFs enable you to invest in modest quantities of gold, rendering them a more cost-effective option than acquiring physical gold.

Transparency: The gold ETF values are closely linked to the live market price of gold, ensuring constant awareness of the current value of your investment.

Liquidity: Gold ETFs are actively traded on prominent stock exchanges, providing convenient accessibility for buying and selling at your discretion.

Diversification: Gold ETFs can serve as a valuable tool for portfolio diversification since they often exhibit distinct movement patterns compared to stocks and bonds.

Many mutual fund companies have come out with gold ETFs in India in the past, though the focus on investing in gold ETFs has resurged with the recent launch of the Edelweiss Gold ETF on November 02, 2023. As per the Scheme Information Document (SID) launched by the Edelweiss mutual fund house, interested investors can engage in the sale and repurchase of ETFs after November 10, 2023.

Ask the aged and the old in your house, and you will find most of them