Add the Glitter of a Gold ETF this Festive Season

Posted On Wednesday, Sep 08, 2021


With the news of mutant Coronavirus variants and social distancing protocols still in place, the festive season might be muted for the second year in a row. However, Indians have preserved the tradition of buying Gold during the festive & wedding season as a symbol of auspiciousness ushering in prosperity for the future. This is because we have understood the intrinsic value of the yellow metal and gold’s capacity for long-term store of value.

A safer way to invest in gold in the new normal might be to invest digitally. One of the innovative ways to invest in gold digitally is a Gold ETF (Exchange Traded Fund). As seen in the infographic below, a Gold ETF has several advantages over physical gold. Firstly, it does away with pricing markups due to making charges associated with physical gold. You do not have to go through the hassle of finding adequate storage and pay hefty locker charges. The fund takes care of all these things. Gold ETFs track the domestic price of Gold and is backed by physical gold.

Let’s understand how this compares to other forms of investing in Gold.

Since Gold prices have corrected from the highs touched in 2020, you can use the correction to build your allocation to gold. We believe that the fundamentals that uphold long-term value continue to remain strong which include:

As you see in the illustrations above, Gold ETF has several advantages that surpasses physical gold and other forms of Gold investments. To elucidate, here’s how Gold ETF compares to two popular digital assets in Gold; Sovereign Gold Bond and Digital Gold.

Sovereign Gold Bond

While Sovereign Gold Bonds are securities issued by the RBI on behalf of the Government, it helps you build wealth and receive interest income. However, it comes with a lock-in of 8 years, making it a relatively illiquid option when you need money.

Digital Gold

Recently, NSE has restricted the sale of digital gold by stockbrokers, stating that it does not come under the definition of securities. Though there are many similarities to Gold ETFs, the primary difference is that digital gold is unregulated.

So it goes without saying that that glitters are not gold. Two of the most innovative ways of investing in Gold this festive season are the Gold ETF and Gold Mutual Fund or Fund of Funds which invest in Gold.

Here are the advantages of investing in the Quantum Gold ETF and the Quantum Gold Savings Fund that invests in the Quantum Gold ETF.

Use the Correction to Build Your Allocation

Since Gold prices have corrected from the highs touched in 2020, you can use the correction to build your allocation to gold.

Use the NSE code QGOLDHALF to buy Gold ETF units.

Add the glitter of a Gold ETF this festival season

Watch our latest Mega webinar video on Asset Outlook & the Economic View in the Current Market Scenario where Chirag Mehta, Sr. Fund Manager, Alternative Investment, give you further insights into the future prospects of Gold.

Product Labeling

Name of the Scheme & Primary BenchmarkThis product is suitable for investors who are seeking*Risk-o-meter of Scheme
Quantum Gold Fund

An Open Ended Scheme Replicating / Tracking Gold
• Long term returns

• Investments in physical gold.
Quantum Gold Fund
Investors understand that their principal will be at Moderately High Risk
Quantum Gold Savings Fund

An Open Ended Fund of Fund Scheme Investing in Quantum Gold Fund
• Long term returns

•Investments in units of Quantum Gold Fund - Exchange Traded Fund whose underlying investments are in physical gold.
Quantum Gold Savings Fund
Investors understand that their principal will be at Moderately High Risk

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The Risk Level of the Scheme in the Risk O Meter is based on the portfolio of the scheme as on August 31, 2021.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – to read scheme specific risk factors.

Above article is authored by Quantum.

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