Gold Exchange-Traded FundGold exchange-traded funds (gold ETFs) serve as an admirable alternative to physical gold. Margin of risks in gold investmentUnlike SGBs or gold ETFs, storing physical gold is prone to counterfeiting and theft. Although their cost is lower than physical gold, ETFs come with annual fund management fees that can impair your returns. Additionally, unlike direct ownership of physical gold or direct investment in gold ETFs, gold funds offer indirect exposure, potentially introducing an additional layer of risk associated with fund performance and tracking error. Gold ETFs follow the same taxation structure as physical gold, depending on the holding period.

Source: Mint December 19, 2023 06:00 UTC