Groww CEO Varun Gupta | Everything You Need to Know About Gold ETFs
Join us for an insightful conversation with Varun Gupta, CEO of Groww, as we dive deep into the world of Gold ETFs! Whether you're a beginner or an experienced investor, this session will help you understand how Gold ETFs work, their benefits, and why they can be a smart addition to your investment portfolio.
Topics We’ll Cover:
What are Gold ETFs and how do they work?
Benefits of investing in Gold ETFs vs. physical gold.
Current market trends and expert insights.
How to get started with Gold ETFs on Groww.
Live Q&A session with Varun Gupta!
Don't miss this opportunity to get expert advice straight from the industry leader!
Set your reminders, subscribe, and hit the notification bell to stay updated!
#ShareMarketToday #StockMarket #Groww #GrowwGoldETF #GoldETF #ETF
#GoldETF #Investment #Grow #LiveShow #VarunGupta #Finance #WealthManagement #GoldInvesting #MarketTrends
~PR.147~ED.148~HT.334~
Join us for an insightful conversation with Varun Gupta, CEO of Groww, as we dive deep into the world of Gold ETFs! Whether you're a beginner or an experienced investor, this session will help you understand how Gold ETFs work, their benefits, and why they can be a smart addition to your investment portfolio.
Topics We’ll Cover:
What are Gold ETFs and how do they work?
Benefits of investing in Gold ETFs vs. physical gold.
Current market trends and expert insights.
How to get started with Gold ETFs on Groww.
Live Q&A session with Varun Gupta!
Don't miss this opportunity to get expert advice straight from the industry leader!
Set your reminders, subscribe, and hit the notification bell to stay updated!
#ShareMarketToday #StockMarket #Groww #GrowwGoldETF #GoldETF #ETF
#GoldETF #Investment #Grow #LiveShow #VarunGupta #Finance #WealthManagement #GoldInvesting #MarketTrends
~PR.147~ED.148~HT.334~
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NewsTranscript
00:00Now let's move to our next segment, which is our AMA session, in which you have asked
00:12us questions through your comment, we will take those questions and it will be my request
00:18to all of you that you can ask us any more questions that you have any doubt about the
00:25So, our first question is of Ravindra Kumar, who is asking that the gold ETFs, are they
00:31backed by physical gold?
00:33Varun ji, what answer would you like to give?
00:35Yes, absolutely.
00:36This is a very sensible question, I would say, because wherever you are investing, there
00:41should be security behind it, right?
00:43Because if something happens in the market, you should know how to sell that security.
00:48So, as I said, whatever gold ETF you take, even if it is 1 by 100 grams, which is currently
00:55running at Rs. 7800, which is a unit of Rs. 78, you can start investing from that.
01:00And the more you invest, the more gold, from a 99.5% purity, from certified gold providers
01:09to SBISG custodians, we will transfer it to their vault.
01:13And that gold is also completely insured, so it is completely backed by physical gold.
01:17And in any way, because this process is completely regulated by SEBI, SEBI has guided the whole
01:22process to set up AMCs.
01:24So, we do not take any risk in this.
01:27And it has been operating for a long time and it is the market participants who operate
01:31it.
01:32So, we take very little, limited, almost impossible risk of any kind of asset loss.
01:38So, Mr. Ravindra, your answer is yes, gold ETFs are backed by physical gold.
01:43The next question is from Tarak Pahadi.
01:45He is asking if there is any lock-in period in this?
01:48No, we have not kept any lock-in period in this.
01:50There is no exit load either.
01:52You can start investing from Rs. 500 in NFO.
01:55After NFO, when the scheme gets listed, you can start with a unit.
02:00But there is no exit load in this, there is no lock-in.
02:03You can exit anytime and you can enter anytime.
02:06So, you can enter anytime, you can exit anytime, you can sell anytime.
02:10The next question is from Mangal Singh.
02:12He is asking that this ETF is not visible in Angel One.
02:15What should I do?
02:16We will talk to Angel One.
02:18As far as I think, it is available.
02:22We will talk to Angel One immediately after this call and find out.
02:28But you should search once, it should most likely be available.
02:31Mangal Singh, I hope you got your answer.
02:34You can also invest through Groww.amc.in.
02:41But if you are with a broker, stay with them.
02:44We will check and make it available.
02:48The next question is from Leelavati Patil.
02:50She is asking that is it necessary to have a Demat account to invest in this?
02:55Can't we invest in this without a Demat account?
02:58Because they are facing a lot of problems in the Demat account.
03:00Yes, I understand this.
03:02This is a very interesting question.
03:04Many investors ask us that if you want to invest in an ETF,
03:08then it is necessary to have a Demat account.
03:10Because you cannot invest in an ETF without a Demat account.
03:13Because it is market traded.
03:14Its securities are made which are transferred to your Demat account.
03:17Many investors asked us the same question.
03:20We have also launched an FOF for them.
03:22It is a gold mutual fund.
03:25It invests in this ETF through an FOF medium.
03:29You can also invest in that.
03:31You don't need a Demat account for that.
03:33You can invest in that through physical folios.
03:35It will be available in many mutual fund platforms.
03:38It is not necessary to have a broken account in that.
03:40The next question is from Rohan.
03:42Rohan is asking that is it worth investing in an ETF in gold?
03:45I want to know more about this in detail.
03:48What will be the benefit of a gold ETF?
03:51Gold is the first question.
03:55Many people would like to know that why should we invest in gold?
03:59As I was telling you that whenever we think of gold,
04:04we think of jewellery and gold bars.
04:06It is important to know that gold is a completely different asset class.
04:10There is equity and debt.
04:12Gold is not correlated with all these.
04:15It is completely uncorrelated.
04:16It means that if equity goes up and down,
04:19it does not affect gold.
04:22But as we have seen that whenever equity goes down,
04:26whenever there is a risk in the system due to downfall in equity,
04:30then that money moves towards gold.
04:32As the demand for gold increases,
04:34it gives good returns.
04:36As a result, gold is a hedge of a market.
04:40You are making a hedge of your portfolio.
04:42If you have invested Rs 100 in the overall market,
04:45then you can think of investing in gold as per the comfort of Rs 5-25.
04:52One advantage of gold is that it is a hedge.
04:55Along with that, it gives you 50-50 returns in the long term.
05:00Of course, there are different types and overall returns.
05:03When equity is down, gold will be up.
05:05Then your portfolio will be a hedge and will increase constantly.
05:08At the end of the day, we all want that
05:10no matter how high our risk appetite is,
05:13no one wants to see a negative in their portfolio.
05:17I advise all investors to do some allocation in gold.
05:21But consult your financial advisor and decide how much allocation you should do.
05:28I hope Rohan, you got your answer.
05:31You have understood the benefits of gold ETF.
05:33How can you benefit from it?
05:35The next question is from Praveen.
05:37He is asking, is it a dividend paying ETF?
05:40No, it is a growth ETF.
05:42There is no dividend in it.
05:44You will get units for all your investments.
05:49Those units will be credited in your Demat account.
05:51It will be marked to market daily as per LBMA.
05:54It is traded live at any time.
05:56There is no dividend payout in it.
05:58But you can withdraw it at any time.
06:00You can sell it in the market.
06:02We keep the liquidity very high.
06:04It comes through our market maker.
06:06There will be no problem of liquidity.
06:08It is not a dividend paying option.
06:10But it is a growth kind of an option.
06:13You will get the growth option here.
06:15But you will not get the dividend option here.
06:17The next question is from Yogeshwar.
06:19He is asking, what is the re-open date?
06:22And what is the expense ratio in it?
06:24Our NFO period was from 7th to 18th October.
06:28And our FOF period is from 16th to 31st October.
06:33We are planning to allocate ETF from 24th to 25th October.
06:41We get 2 weeks time for it.
06:43But we try to complete our allocation within a week.
06:47The second question you asked about the expense ratio.
06:52We decide it after the scheme and the AUM.
06:56Usually, the expense ratio is capped in the scheme.
07:00You cannot keep more than 101% of both ETF and FOF.
07:05Usually, there is a very low expense ratio in it.
07:08We are expecting anywhere between 40-50 bps.
07:110.4% to 0.5% is the expense ratio.
07:15The next question is from Mom's Love.
07:20They want to know, can we invest in it from any other app other than Groww?
07:27Yes, you can invest in ETF from any broker.
07:34In Gold Mutual Fund, if you have a mutual fund account in any app.
07:41Or if you have a mutual fund with your financial advisor.
07:45You can invest in it through them.
07:47As I was telling you, to invest in ETF, you need to have a Dement account.
07:51In ETF, you need to have a broking account with a broker.
07:55And in Gold Mutual Fund, you need to have access to a mutual fund.
08:00You can invest in ETF with any advisor or platform.
08:05The next question is from Gyan.
08:07They want to know, will it be taxed as per STCG 20%?
08:13Or will it be taxed as per tax slab?
08:15One good thing in Gold is that its taxation is almost at par with equity.
08:22And it is much better than before.
08:24Before the last budget, you had to hold for 36 months.
08:29And after that, you had to pay 20% with indexation tax.
08:32Now, if you hold for a year, you will have to pay 12.5% without indexation tax.
08:38Which is exactly like equity.
08:40And this is the best taxation in securities market.
08:43If you are talking like equity.
08:45But if you sell it before a year, it gets added to your salary.
08:50And then you are charged as per your tax slab.
08:52Your taxation is like that.
08:54We recommend that if you are investing in Gold, invest for a long term.
08:58Invest for at least 1 year.
09:00So that you can take advantage of 12.5% taxation.
09:02Someone has replied to their comment.
09:06There is no point in investing in Gold ETF with a small amount.
09:11There won't be much gain and there will be more charges.
09:14Varun, what will be your answer to them?
09:16Whenever you invest through AMC or us, your charges are fixed.
09:23Charges are based on your experience ratio.
09:25The amount of portfolio you want to invest depends on the person.
09:32If someone has a 1 lakh portfolio, he will invest 5000.
09:35If someone has a 10 lakh portfolio, he can invest 50,000.
09:39So it depends on how the investor wants to invest.
09:45And the most important thing is your own comfort.
09:48For example, this Gold ETF can be a new product for many people.
09:51If it is a new product for you and you are not able to understand it.
09:55Discuss it with your financial advisor.
09:57If you are still not able to understand it, invest a small amount.
10:02Get your own comfort.
10:05And then you can think of investing a big amount.
10:08Next question is from CRFV.
10:11Again, they are asking what is the expense ratio of this ETF?
10:14The answer is the same.
10:16The answer is there is a limit in the expense ratio.
10:19You can't increase the expense ratio of ETF and FOF by 1%.
10:24We try to keep the expense ratio as low as possible.
10:29We are trying to keep it between 0.4% and 0.5%.
10:33We will try to keep it between 0.4% and 0.5%.
10:36Next question is from Anil Tahilyani.
10:39They are asking if it is a one-time investment or SIP?
10:43In ETF, you always invest in units.
10:46And when you do a one-time investment.
10:50When the mutual fund and FOF is still alive, you can start SIP.
10:54But in ETF, many brokers are allowing this facility.
10:58There is a facility available on Groww Broking Platform.
11:01You can do SIP in ETF too.
11:04But you can do it after the NFO.
11:06If you want to do SIP during the NFO period,
11:08You can invest in ETF's gold mutual fund.
11:12Next question is from Nisar.
11:14He is asking if we can exchange this ETF in physical gold?
11:19This facility is not available through regulators.
11:25This is a gold investment.
11:28You can take advantage of your gold returns.
11:32But you are not allowed to convert it into physical gold.
11:37We are working towards this.
11:39Many investors have asked for this information.
11:41It may come in future.
11:43But this provision is not available now.
11:45Next question is from Harsh Raj.
11:48He is asking what is the minimum amount to invest in this?
11:51Minimum amount is Rs. 500 in ETF.
11:54It is open till 18th October.
11:57I think similar amount is available in FOF.
12:00You can invest in Rs. 500.
12:02That NFO is open till 31st October.
12:04Next question is from Rahul Mishra.
12:06He is asking what are the factors that investors should consider
12:10before choosing a gold ETF over physical gold?
12:13There are many types of risks in physical gold.
12:17There is no price parity in many cities.
12:22There are many types of charges.
12:24There is GST.
12:25There can be making charges.
12:27There is storage cost.
12:30There is risk of theft.
12:32Liquidity can be an issue.
12:35There is a question mark of purity.
12:37AMC has answered all these questions in ETF.
12:41We take care of it.
12:43We take 99.5% purity.
12:45There are no extra transaction charges through AMC.
12:49You can invest in it without any worries.
12:52You can take advantage of gold prices.
12:55Next question is from Sonu Jaiswal.
12:58He is asking how GrowGold ETF ensures liquidity for investors.
13:03We are launching our 4th ETF.
13:09We have a market maker in every ETF.
13:12The objective of the market maker is
13:14if any investor wants to buy or sell units in the scheme
13:21and there are no other investors who are providing units against it
13:26then the market maker provides the units.
13:29It settles with AMC.
13:31AMC provides liquidity at any point of time.
13:35We will provide the same liquidity.
13:38We have 3 ETFs which are liquid.
13:41We will provide liquidity to our investors in Gold ETF.
13:45Next question.
13:47His name is not mentioned here.
13:49He is asking how long can NFO be held?
13:53Can it be a future plan?
13:55NFO will end on 18th.
14:00After that we take 5-7 working days in allocation.
14:06After that there is no exit load.
14:08You can exit anytime.
14:10We have kept this scheme open.
14:12You can enter anytime.
14:14We recommend that there are many benefits in gold in long term.
14:19There is a hedge.
14:20There are advantages of taxation.
14:22If you want to invest, think for at least 1 year.
14:25You can see in long term depending on your risk profile and market situation.
14:30If you want to invest now, think for at least 1 year.
14:34Think for at least 1 year that you have to invest in this for 1 year.
14:39Next question is from Anuraj Kumar.
14:41He is asking that gold is often considered as a hedge against inflation.
14:45How does the GrowGold ETF perform in high inflation environments?
14:49This is a very smart question.
14:51Many smart investors understand this.
14:55Whenever there is inflation,
14:57and see the reasons behind inflation.
14:59Right now there is inflation because central government has pumped a lot of money.
15:04Central government of many countries.
15:06Because of that prices have increased.
15:08Whenever there is inflation,
15:10we have seen that gold prices also increase with inflation.
15:14You can always use inflation as a hedge.
15:20Historically, we have seen this happening at all times.
15:24Whenever you are worried about inflation,
15:26you feel that there is a lot of inflation,
15:28then you can make a plan to invest in gold.
15:32Next question is from Ram Dinesh.
15:36He is asking that after selling gold ETF,
15:38money goes to bank account or grow account?
15:41There is no connection between grow account.
15:44Whatever broker you are investing in,
15:47you will invest in Grow ETF through that broker.
15:51Whenever you sell,
15:53your money will go to that broker's pool account,
15:58which you can withdraw in bank at any time.
16:00But if you invest in mutual fund,
16:02which is Grow's gold mutual fund.
16:04Whenever you sell in that,
16:06money will come directly to your bank account from Grow MCK.
16:10So, money will come to your bank account.
16:13So, you don't have to worry.
16:16I would like to clarify this again.
16:18If you are investing in mutual fund,
16:20and redeem it,
16:22money will come to your bank account.
16:24If you are investing in ETF,
16:26money will come to your broker's pool account,
16:28from where you can withdraw money in bank.
16:30It can be any broker.
16:32Exactly.
16:33It can be any broker.
16:35Next question is from Aditya.
16:37He is asking that what about liquidity issue?
16:39Would it be easy to sell after investment?
16:41Yes.
16:42We will ensure complete liquidity.
16:44It is AMC's responsibility.
16:46You can see our track record.
16:48We have 3 ETFs live in the market.
16:50We have provided complete liquidity in all 3.
16:53In Grow's gold ETF,
16:55we will ensure that investors get complete liquidity.
16:58Next question is from Ranjeet.
17:02He is asking that why not SGB instead of ETF?
17:05In SGB, we get 2.5% interest.
17:10Apart from returns on gold.
17:12This is a right question.
17:14If you see how SGB is going,
17:16there is no new tranche in this financial year.
17:19Last tranche was in Feb 2024.
17:21Second, if you have SGB units,
17:24and you can see in the market,
17:26there are some issues in liquidating them.
17:28SGB is a good model.
17:31It used to be good.
17:33But now I think it has some challenges.
17:35So if you want to invest in gold in a simple way,
17:38without worrying about how to sell,
17:40when to buy,
17:42if you want to trade immediately,
17:44there shouldn't be any problem.
17:46Grow's gold ETF is one of the best ways to invest.
17:51Next question is from Divya.
17:53She is asking that can we buy or sell in gold ETF at any time?
17:57And after NFO,
17:59what will be the best time to invest in Grow Gold?
18:03You can invest in NFO.
18:06After NFO, when the product will be listed in the market,
18:09and ETF will be live on exchanges,
18:12then you can enter or exit anytime.
18:15It is completely up to you.
18:17Or you can take advice from the advisor you are discussing with.
18:21No one can give you advice.
18:24I can't tell you right now.
18:26It depends on person to person.
18:28What is the right time for whom.
18:30But it depends on your risk appetite.
18:34What do you think the market is at right now?
18:39Do you want to hedge your portfolio?
18:41Accordingly, you can make your decision to invest in Gold ETF.