Indians love Gold. Rich or poor, educated or illiterate most of the Indians first investment choice is Gold. In these times of global financial uncertainties it is a wise thing to do too. But there is a better way to invest in Gold than buying coins or jewels. That’s thru the Gold ETF route.
Advantages of investing in Gold ETFs:
- Assured quality
- Easy liquidity
- No maintenance or safety worries
- No making or wastage charges
Of course, you can’t flaunt your wealth with this paper gold in family functions and parties. However with all these advantages, convincing Indians to go for Gold ETFs will be an easy task than to make them invest in equity funds. Even a plain simple ad focusing on the ETF advantages will do the trick.
Currently Benchmark, Quantum, UTI, Kotak and Reliance offer listed Gold ETFs. But none of these fund houses are taking any major steps to educate the common man to invest in the ETFs. Will they take steps to push the Gold ETF marketing this Diwali season?
4 responses so far ↓
1 Ed // Sep 29, 2008 at 9:12 pm
I disagree.
ETFs have a large degree of counterparty risk and therefore are highly dependent on other facets of the financial system to work properly.
If there is a real collapse, you will regret you didn’t buy bullion, or at least perth mint certificates – the next best thing..
Ed
2 CC // Dec 2, 2008 at 1:39 pm
whats the full form of ETF?
3 Siva Rajendran // Dec 11, 2008 at 11:06 pm
ETF – Exchange Traded Fund
4 Fact based marketing - Selling pension plans // Feb 12, 2009 at 11:13 pm
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