Go for Benchmark Goldex...regardsHareeshOn 8/19/08, Mallikarjun Chabukswar <[EMAIL PROTECTED]> wrote: HelloCould you please guide on how to buy ETFs online. I have icicidirect account and didn't find ETF there under mutual fund section. Thanks in advance. -Mallikarjun On 8/19/08, Kaushik Nemani <[EMAIL PROTECTED]> wrote: ETF: A golden investment opportunity to hedge against inflation! - The Times of India
Gold Exchange Traded Fund Scores Over Physical Gold On Counts Of Easy Buying, No Hassles Of Safety Or Quality & Attractive Tax Benefits! Glittering gold has overshadowed almost all other asset classes in the recent past with a healthy return of over 30% during the last one year. Gold also serves as an excellent hedge against inflation and it makes sense to diversify your portfolio by taking a reasonable exposure to gold as an investment. Traditionally, the only option available to invest in gold was to buy it in the physical form, whether in the form of ornaments or as bars or coins. But with the launch of Gold Exchange Traded Fund (ETF), investors now have the option of investing in gold in the paper or demat form. Gold Exchange Traded Funds are like units of mutual funds. Gold ETFs can be easily purchased and be held in the paper or demat form; there are no storage or security problems. Also, you do not have any worry on grounds of quality assurance. Moreover, a gold biscuit conforms to a standard weight, but gold ETF units, being available in multiples of one gram, are within the reach of a small investor as well. You can cash out anytime realizing the prevailing market price of gold, without being bothered about the wiles and guiles of a goldsmith in the market. A number of mutual funds including UTI, Reliance, Kotak, etc, too have come out with Gold ETF. Gold ETF units are listed and can be purchased and sold as though you are dealing in the gold bullion market, but without trading physically in gold. The fund house buys gold in the bullion market to the extent of your investment at the spot price and when you sell, it gives you the proceeds also calculated at the spot price. Gold ETF buyers are pure investors of gold, who seek a return out of their investment without any other motivation such as adornment or social status.Glittering Tax Benefits Gold has continued to remain as one of the assets on the hit list of wealth-tax. Financial assets have, however, been fortunate to keep out of the wealth-tax net. Thus, if your taxable wealth exceeds Rs 15 lakh, there is a positive tax incentive to hold gold in the form of ETF units in comparison to holding physical gold, since you can enjoy wealth-tax exemption and lawfully avoid the annual recurring liability of paying 1% in the form of wealth-tax. Gold ETF has one added tax-saving feather in its cap and that is in respect of the tax on capital gains. Gold in the physical form qualifies for the concessional long-term capital gains (LTCG) tax treatment of 20% with indexation, but only if it is held for at least three years prior to its sale. Paper gold issued by ETF represents units of mutual funds and thus enjoys the privileged status of a longterm capital asset just after 12 months of holding keeping in view the proviso to Section 2(42A) of the I-T Act. It needs to be borne in mind that U/S 10 (38), LTCG of only those securities, which attract Securities Transaction Tax (STT) are treated as totally exempt. Since Gold ETF falls in the category of commodities and not securities, ETF units do attract tax on the LTCG derived from their sale. However, under the special provisions of Section 112, LTCG on sale of ETF units attracts concessional tax at 10% without indexation or 20% with indexation. Moreover, such taxable LTCG can also be set off against any unabsorbed capital loss. Short-term capital gains arising on ETF units would attract tax at the regular rates as in the case of physical gold. Since ETF is a non-equity fund, distribution of any dividend by the mutual fund would indeed attract Dividend Distribution Tax. Plan your timing and it would be worth the investment to diversify your portfolio with some Gold ETF content! -- Posted By Ronald Chisley to Investor Forums at 8/20/2008 06:35:00 PM --~--~---------~--~----~------------~-------~--~----~ Logon at – http://investorline.co.in/blogs/news Learning Center- http://investorline.co.in/blogs/learning Mutual funds - http://investorline.co.in/blogs/mutualfunds Life Insurance - http://investorline.co.in/blogs/lifeinsurance Investor Journal - http://investorline.co.in/blogs/investor Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/ Create your own Forum & Blog at - http://investorline.co.in/blogger To post to this group, send email to [email protected] Visit this group at-http://groups.google.com/group/investor-forums?hl=en -~----------~----~----~----~------~----~------~--~---
