Career Dream Education and

MONYBARTERS

Topics
Investment in E-Gold
Investment in ETFs
E-Gold Investment In sovereign Gold Bond
Investing in Physical Gold

Name :- Mamta kumari

Pursuing:- MBA
Team Leader:- Shraiya Dhingara
 What is investment in E- Gold

E-gold is the electronic mode of investing in gold and can

be bought as e-gold units in the demat form through the
National Spot Exchange platform. Investors have the
option to invest and trade in gold without taking delivery
of physical gold, saving them the holding and storage cost.
 How to invest in E-Gold
Open a Demat Account :- For purchasing commodities in NSE, it is
necessary to have a Demat account. One can keep a separate Demat
account for equities and commodities or keep the same one. To open
an account, one can submit all the required documentation to NSE.
Trading:- Once your account is opened, you can log in and buy e-
gold. You can trade from 10 am to 11:30 pm on weekdays. Your gold
units would get credited to your Demat account in T+2 days (date
plus one day).
Physical Delivery:- If you want, you can take physical delivery of
gold at any time by redeeming e-gold units to your Demat account.
 Advantage Of E- Gold
Gold rates on NSE are based on Indian market rates.
Investors can buy and sell gold in small
denominations. For e.g.- 1gm, 2gm of gold.
Transparency in pricing and seamless trading is one of
the major advantages of this product.
This product is high in liquidity. One can sell it at any
point of time.
No impurity risks.
 Disadvantage of E-Gold

The storage charge of this product is 60 paisa per

unit per month.
Hacking of an account .
 What is Investment in ETFs
An ETF is a basket of securities, shares of which are sold on an
exchange. They combine features and potential benefits similar
to those of stocks, mutual funds, or bonds. Like individual
stocks, ETF shares are traded throughout the day at prices that
change based on supply and demand.
 Advantage of ETFs
Unlike traditional stocks, the Exchange Traded Funds can be traded
throughout the day. They provide an opportunity for speculative investors
to bet on the direction of shorter term market movements.

Exchange Traded Funds shine when it comes to saving money. They offer
all the benefits of the index stock and cost a lot less.

 Exchange Traded Funds come in handy when investors want to create a

diversified portfolio.

Exchange Traded Funds are a favorite amongst the tax aware investors.
The unique structure of Exchange Traded Funds allows the investors who
are trading i large volumes to receive kind redemptions.
 Disadvamtage of ETFs
The long-term investors might not enjoy the intraday pricing
changes. Hence, they may trade more due to the lagged pricing.

The niche ETFS have a low volume index.

The dividend paying yields can be high, but not as high as the
owning a high yield stock or a group of stocks.

Exchange Traded Funds have been around since the 198O.

They gained popularity as investors started looking for options
besides mutual funds.
What is E-Gold Investment in sovereign Gold Bond
SGBs are government securities denominated in grams
of gold. They are substitutes for holding physical gold.
Investors have to pay the issue price in cash and the
bonds will be redeemed in cash on maturity. The Bond
is issued by Reserve Bank on behalf of Government of
India.
 Advantage of SGBs

Interest payment:- One of the biggest Sovereign Gold Bond

scheme benefits is the interest payment. The government
offers a fixed annual interest rate on your SGB investment.
Paper and Demat Format:- To eliminate the cost and concern
of storing physical gold, the SGB is available in paper and
demat format. When you invest in SGB, you do not receive
physical gold but a holding certificate.
Tax Benefit:- Sovereign Gold Bond scheme tax benefit is
important too. No TDS is applicable on the interest you receive
from your SGB investment. You are also allowed to transfer the
bond before maturity and gain indexation benefit.
 Disadvantage of SGBs

Maturity:- A lot of investors are discouraged by the gold bonds

because of long maturity period of 8 years. However, this long
tenure is actually one of the most important gold bond benefits.
The government has kept the maturity long in order to prevent
gold price volatility resulting in losses for the investors.

Capital Loss:- Your investment in SGB can result in a capital loss as

the bond value is directly linked to the price of gold in the
international markets. If the price at which you buy the bond is
higher than the price at which you redeem it at maturity, you
might end up in a loss.
 What is Investment in Physical Gold
Investing in gold is one of the most preferred and
favoured investment options in India. This yellow metal
has only seen increasing demand over the years. Gold is
usually bought for consumption purposes. It is purchased
in the form of jewellery, gold coins and biscuits. It can be
bought directly from a jeweller or a bank with no
involvement of an intermediary.
 Advantage of Physical Gold
Security of value:- one of the primary attractions of gold
an investment option is the security of knowing that the
price is going to rise steadily over time.
Portfolio diversification :- Probably, the biggest benefit of
investing in gold is portfolio diversification. As we have
mentioned, the price of gold performs very well in times
of uncertainty.
Simplicity :- Investing in gold is surprisingly elementary
and quite fast even without much experience in money
investment. If you talk to a broker or financial analyst .
 Disadvantage of Physical Gold
Not A Passive Income:- Asset Many financial experts, including Warren
Buffet, believe that investments should produce income. Gold does not
really meet this condition because it produces nothing when you own it.
Premiums and tax:- Premiums are usually less with pooled accounts but
sellers never remove them. This means that in the event that gold loses
its value, albeit unlikely, you incur a loss equal to the current value of the
gold.
Gold Has A Terrible Historical Return:- Now, which of these investments
would come out ahead? Well, if you are smart, gold would be your last
choice among the three options because amazingly, it performs very
poorly compared to the other two.
Thank you