1Professor, Dept. of Commerce, Osmania University College for Women,Hyderabad,A.P. Email id:prashantaathma@gmail.com
2Research Scholar, Osmania University, Hyderabad,A.P. Email id:konkaboina_s2004@yahoo.co.in
An investor has numerous investment options to choose from, depending on his risk profile and expectation of returns. Different investment options represent a different risk-reward trade off. Of the various types of investment options in Stock market, Gold Exchange Traded Funds (GOLD ETFs) happens to be one of the best options to be included in the portfolio for diversification of risk.
The first Gold Exchange-Traded Fund was actually launched in March 2003 on the Australian Stock Exchange under Gold Bullion Securities (ticker symbol "GOLD"). Graham Tuckwell, the founder and major shareholder of ETF Securities, was behind the launch of this fund.
Not much research work has been done on “Gold ETFs”. The studies related mainly to conceptual knowledge of gold ETFs. Hence the study is undertaken to fill the research gap with the objectives to focus the Gold ETF as a strong asset class; to stress upon the inclusion of Gold ETF in a portfolio for risk diversification; to assist the investor in the selection of best Gold ETF option and to analyze the tax implications of Gold ETF.
The investment in the Gold ETF is low due to the low awareness among the investors and the sentimental attachment of the investors towards holding gold in physical form.
If the uncertainty over the global economies and volatility in the equity markets are to continue for some more time, Gold ETFs are bound to find not only more number of investors, but also more number of Mutual Fund Players to launch them in the coming future.
However, initiatives are to be taken by the Mutual Funds offering Gold ETFs, Govt. SEBI and Members of the Stock Exchanges for creating awareness among the investors.
