Groww Mutual Fund is introducing the Groww Gold ETF, offering investors a new, cost-efficient, and convenient way to invest in gold. The New Fund Offer (NFO) will be available from 7th October to 18th October 2024.
The Groww Gold ETF is an open-ended Exchange Traded Fund (ETF) that seeks to replicate the domestic price of *physical gold.
By investing in gold bullion with high purity (99.5%), this ETF provides investors with exposure to the gold market without the hassles associated with buying, storing, or insuring physical gold.
1Recent trends show an increasing interest in gold ETFs in India, driven by relative safety, potential returns, and the possible convenience these funds offer.
1A recent customs duty reduction in the July Budget has resulted in a 9% decrease in gold prices in India, presenting an opportunity for investors to acquire gold with lower taxes.
2Notably, investments in gold ETFs surged to ₹1,337.4 crore in July 2024, marking the highest monthly net inflows since February 2020. From May to July 2024, gold ETFs attracted significant inflows, totaling ₹2,890.9 crore.
Why Consider the Groww Gold ETF?
Aligned Returns with Gold Performance: The ETF seeks to closely mirror the price movements of gold, allowing investors to benefit from the performance of the metal, subject to tracking errors.
Regulated and Transparent: Governed by SEBI, the Groww Gold ETF is highly regulated, ensuring transparency in operations. Held in Demat accounts, the ETF seeks to offer investors security in a format that ensures the quality and traceability of their investments.
Gold as a Hedge: Gold has historically been viewed as a hedge against systemic risks, including financial crises and inflation. For example, during the 2008 global financial crisis, gold gave a positive return of 5.8% while major stock indices like the S&P 500 and Nifty 50 fell.
Similarly, during the COVID-19 pandemic, gold gave a return of 25.1% in 2020, which we believe has further reinforced its role as a stabilizer during uncertain periods. |
