Gold ETF: A Convenient and Tax-Efficient Way to Invest in Gold A Gold ETF (Exchange-Traded Fund) is a financial instrument that allows investors to invest in gold without physically owning it. Traded on stock exchanges like shares, it tracks the real-time price of gold and offers exposure in an electronic format. How to Invest: To Invest in Gold ETF Open a Demat and Trading Account. Choose a Gold ETF listed on NSE or BSE. Buy units like stocks. Benefits: Safety & Convenience: No theft risk. Liquidity: Easily bought/sold. Transparency: Real-time price updates. Low Costs: No making or storage charges. Diversification: Acts as a hedge against inflation and market volatility. Returns: Returns are tied to gold prices in India, offering stable returns, especially in economic downturns. Taxation: Short-Term Capital Gains (STCG): Taxed as per the income tax slab if sold within 3 years. Long-Term Capital Gains (LTCG): Taxed at 20% with indexation benefits after 3 years. Conclusion: Gold ETFs provide an efficient, low-cost, and tax-friendly way to invest in gold, making them a great option for a diversified portfolio. Read : https://www.hdfcfund.com/learn/blog/what-gold-etf