Groww mutual fund launches gold ETF for cost-effective investment

Groww Mutual Fund has unveiled the Groww Gold ETF, offering a smart and simplified method for investors to gain exposure to gold. The New Fund Offer (NFO) will be available from 7th to 18th October 2024.

The Groww Gold ETF is designed to replicate the domestic price of physical gold, providing investors an opportunity to invest in gold bullion of 99.5% purity. This cost-efficient investment tool eliminates the need for physically buying, storing, or insuring gold, while still allowing investors to benefit from price movements.

The launch comes at an opportune time, as gold prices in India have seen a 9% drop following a reduction in customs duties earlier this year. This presents a favourable window for investors to buy into gold at lower prices.

Gold ETFs have gained popularity in India, with significant inflows in recent months. In July 2024, ₹1,337.4 crore was invested in gold ETFs, marking the highest monthly inflow since 2020. The Groww Gold ETF will allow investors to easily buy and sell units on the stock exchange, offering liquidity and transparency.

With a minimum investment of ₹500, the ETF makes gold accessible to a wide range of investors. Additionally, units can be used as collateral for loans, and the ETF may offer tax efficiency for long-term investors.

The Groww Gold ETF provides a secure and regulated way to invest in gold, governed by SEBI, and aims to attract both novice and seasoned investors alike.

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