Gold ETF
Also called Gold exchange-traded fund
A SEBI-regulated fund that holds physical gold and trades on the stock exchange like a share.
A gold ETF is a fund that holds physical gold and is listed on the stock exchange, so you buy and sell it like a share through a demat account. It’s regulated by SEBI, has no making charges or storage worries, and charges a small yearly fee. Compare it with a gold fund in gold ETF vs gold fund.
Questions people ask
What is a gold ETF?
An exchange-traded fund that holds physical gold and tracks its price. Its units are listed on the stock exchange, so you buy and sell them through a broker during market hours, and they sit in your demat account.
Do I need a demat account for a gold ETF?
Yes, because it trades on the stock exchange like a share. If you don't have one, a gold mutual fund invests in a gold ETF for you without a demat account.
How is a gold ETF taxed?
Under the rules since the 2024 Budget changes, gains on units held more than 12 months are long-term and taxed at 12.5% without indexation; shorter-term gains are taxed at your slab rate. Tax rules change, so check incometax.gov.in.
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