by Gold ETF
A Gold ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold price. They are passive investment instruments that are based on gold prices and invest in gold bullion.
In short, Gold ETFs are units representing physical gold which may be in paper or dematerialised form. One Gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity. Gold ETFs combine the flexibility of stock investment and the simplicity of gold investments.
Gold ETFs are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. (BSE) like a stock of any company. Gold ETFs trade on the cash segment of BSE & NSE, like any other company stock, and can be bought and sold continuously at market prices.
Buying Gold ETFs means you are purchasing gold in an electronic form. You can buy and sell gold ETFs just as you would trade in stocks. When you actually redeem Gold ETF, you don’t get physical gold, but receive the cash equivalent. Trading of gold ETFs takes place through a dematerialised account (Demat) and a broker, which makes it an extremely convenient way of electronically investing in gold.
Because of its direct gold pricing, there is a complete transparency on the holdings of a Gold ETF. Further due to its unique structure and creation mechanism, the ETFs have much lower expenses as compared to physical gold investments.
Purity & Price:
Gold ETFs are represented by 99.5% pure physical gold bars. Gold ETF prices are listed on the website of BSE/NSE and can be bought or sold anytime through a stock broker. Unlike gold jewellery, gold ETF can be bought and sold at the same price Pan-India.
Where to buy:
Gold ETFs can be bought on BSE/NSE through the broker using a demat account and trading account. A brokerage fee and minor fund management charges are applicable when buying or selling gold ETFs
Source: https://www.amfiindia.com/investor-corner/knowledge-center/gold-etf.html
RBI Bonds
The Government of India launched the Floating Rate Savings Bonds, 2020 (Taxable) scheme on July 01, 2020 to enable Resident Indians/HUF to invest in a taxable bond, without any monetary ceiling.
Eligibility for Investment:
The Bonds may be held by:
(i) A person resident in India,
(a) in her or his individual capacity, or
(b) in individual capacity on joint basis, or
(c) in individual capacity on any one or survivor basis, or
(d) on behalf of a minor as father/mother/legal guardian
(ii) a Hindu Undivided Family
Form of the Bonds:
Electronic form held in the Bond Ledger Account.
Period:
The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens.
Individuals
- Duly filled in application form (Complete application forms with all pages in full,duly filled in from the investors)
- Self attested PAN card copy of the investor
- Self attested Address copy of the investor
- Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments
- No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the investor
HUF
- Duly filled in application form (Complete application forms with all pages in full,duly filled in by the Karta with stamp and signature)
- Self attested PAN card copy of the HUF
- Self attested Address copy of the HUF
- Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments
- No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the Karta
- List of coparceners in the Hindu Undivided Family along with their signatures attested by Karta
Minors
- Duly filled in application form (Complete application forms with all pages in full,duly filled in from the Guardian)
- Self attested PAN card copy of the minor / Guardian
- Self attested Address copy of the minor / Guardian
- Birth Certificate of the minor attested by the Guardian
- Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments
- No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the investor.
- In case of POA, Original POA to be verified by the bank and certified as “Original Seen and Verified”.
Source: https://www.hdfcsec.com/rbi-bond
