Zerodha Gold ETF Debuts on Indian Exchanges

Zerodha Gold ETF

Zerodha Mutual Fund has taken a significant step by officially listing its Zerodha Gold ETF on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). This move aims to provide investors with a seamless and cost-effective way to gain exposure to the domestic gold market.

The Zerodha Gold ETF, classified as an open-ended scheme, mirrors and tracks domestic gold prices, allowing investors to buy or sell units on all trading days as it is now listed on both major stock exchanges.

Market Dynamics and Enthusiastic Reception

Industry experts express optimism about the launch, citing current market dynamics and a substantial surge in gold ETF inflows. Recent data from the Association of Mutual Funds in India (AMFI) reveals a notable increase in Gold Exchange Traded Funds inflows, reaching ₹657 crore in January 2024, marking a seven-fold rise compared to the previous month.

Cost-Effectiveness and Security Focus

Zerodha Mutual Fund highlights the cost-effectiveness of its Gold ETF, positioning it as an accessible and low-cost avenue for investors to incorporate gold exposure into their portfolios. The fund invests in physical gold with a purity level of 99.5% and above, securely stored in a vault to address any security concerns.

Gold’s Timeless Appeal

Gold has long been recognized as a safe haven and a hedge against inflation, factors that continue to drive its appeal amid ongoing geopolitical tensions and rising inflation, particularly in the United States. The Zerodha Gold ETF introduction provides investors with an opportunity to diversify their portfolios and potentially reduce overall volatility.

Accessibility and Investment Requirement

The Zerodha Gold ETF is designed to cater to a broad spectrum of investors, with a minimal investment requirement of ₹10, making gold investments more accessible to a wider audience.

CEO’s Perspective

Gold is generally seen as a financial asset that retains its value and purchasing power during inflationary periods, according to Vishal Jain, CEO of Zerodha Fund House, who made this statement in response to the launch. For those who are worried about storage and security, the Gold ETF provides a quick and easy way to invest in gold. Your portfolio’s overall volatility is decreased by gold because of its low correlation with equities.

Expert Insights

While the launch of Zerodha Gold ETF provides investors with a valuable option to diversify portfolios, experts suggest that gold may be better suited as a short to medium-term investment, given its historical market behavior.

In summary, Zerodha Mutual Fund’s foray into the Gold ETF market reflects a strategic move to meet growing investor demands for accessible and cost-effective investment opportunities, especially in the ever-popular gold sector. The listing on NSE and BSE opens up new avenues for investors to navigate the dynamic landscape of the domestic gold market.

Also Read: How to Invest in US Stocks from India| A Comprehensive Guide

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