Years back gold was very different type of investment when compared with shares and mutual funds. Investment in gold was not so easy at that time. The only available options are either ornaments or coins. The situation changed with the arrival of Exchange Trade Funds and futures. They made the investment in gold as easy as shares. In gold ETF there is no risk of keeping the gold and the purity is 100% assured. This also makes the value comparison with other assets easy.

As the gold ETF trading occurs in stock exchange, the liquidity value is very high. One unit gold (1 gm) is equivalent to one ETF. It can provide the same return rate as physical gold. The investor also has the option to choose the right plan that suits him better. In India gold ETF launched in year 2007. The pioneer is benchmark GETF. Now there are six fund houses that started the Gold exchange funds. They altogether handles an asset of 875crore Rupees.SBI also entered the GTF market.

The return and performance of the gold ETF’s are very high and trusty. It overtakes the return rate of equities and mutual funds. All gold ETFs are in the path of success now. All together the gold ETFs are handing about 7.5 tones of gold. Various other market leaders such as ICICI, HDFC are also planning to launch gold ETF.

Like dollar, the demand for paper ETF also influences the gold rate. One has to keep in touch with the market while investment. One must take care about the dollar growth rate and the inflation rate before investing in gold ETF.