Gold ETF: The global demand for Gold ETFs (Equity Traded Funds) has diminished, yet in India, investor interest in Gold ETFs stays steady. In November of this year, a record sum has been invested in Gold ETFs for the eighth month in a row. Based on the depository’s data, a sum of $175 million has been allocated to Gold ETFs this month.

Gold ETFs are regarded as secure investment options

Experts suggest that, similar to gold, Gold ETFs are regarded as secure investment options. In this scenario, because of the disturbances in the local stock market since October, investors have shown a greater preference for Gold ETFs. Following October, investors have embraced the Gold ETF in November as well. Market specialist Mayank Mohan states that amid the chaos in the stock market, the alteration in regulations by the Central Government concerning Gold ETF has made Gold ETF more appealing for investors than it was previously.

Government has modified the tax regulations regarding Gold ETF

This year, the central government has modified the tax regulations regarding Gold ETF in the Union Budget. Under the new regulations, a capital gains tax of 12.5 percent will apply to the sale of Gold ETFs after one year. Previously, capital gains tax was imposed based on the investor’s tax bracket. As a result of this rule change, Gold ETFs have become more appealing to investors than they were previously.

Likewise, bullion market specialist Santosh Taneja notes that with the halt of Sovereign Gold Bond, there has been a rise in people’s interest in Gold ETFs across the nation. Investors receive a GST advantage by investing in Gold ETF rather than physical gold. The most important aspect is that this investment is entirely clear and secure. As a result, the inclination towards Gold ETFs persists among Indian investors.

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