Monday, March 18, 2013

Invest in Gold - SBI Gold Exchange Traded Scheme


Why to invest in gold?

Long term investment in gold has always yielded positive returns in the past 30 years.

Here is data for past 30 years:



For a more relevant comparison, here is data for past 2 years:


Ideal way of investing in Gold

If you would like to invest in Gold but don’t like the hassle and cost of storing and safeguarding physical gold, you can go for a Gold Fund. Gold fund offers an ideal way to invest in Gold and Gold bullion. Units of any gold fund can be bought or sold through the National Stock Exchange, just like a stock.

After a little research, I was able to find a suitable fund - SBI Gold Exchange Traded Scheme. The exit and entry load for this fund is Nil. This means no extra cost or fees is involved in buying or selling. You just need to pay a nominal brokerage.

How to invest in SBI Gold Exchange Traded Scheme

There are multiple ways:

  1. If you have a demat account (with any broker), you can buy units of SBIGETS just like any other stock.
  2. You can visit http://www.sbimf.com/, and buy the units online.
  3. You can visit an SBI branch, and fill a form!  SBI Branch Locator

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