ETF – Exchange Traded Funds
This is November 7, 2012 and very close to Diwali. This year the auspicious occasion of Dhanteras is on November 11, 2012.
Dhanteras as explained on wikipedia: Dhanteras (Hindi: धनतेरस, Marathi : Dhantrayodashi) is the first day of the five-day Diwali Festival as celebrated in parts of North India. The festival, known as “Dhantrayodashi” or “Dhanvantari Triodasi”. The word Dhan means wealth and Teras means 13th day as per Hindu calender. It is celebrated on the thirteenth lunar day of Krishna paksha (dark fortnight) in the Hindu calendar month of Ashwin.
On Dhanteras, the “Owl” form of Goddess Lakshmi is worshiped to provide prosperity and well being. Dhanteras holds special significance for the business community due to the customary purchases of precious metals on this day.
Gold is the favourite precious metal for all of us and typically gold is bought on Dhanteras. Buying gold as jewellery is not really the ideal way of investing as they are illiquid, you have to factor in making charges, etc… The best way to buy into gold for an investment is through ETFs (Exchange Traded Funds) and NSE is conducting a special session this Sunday to trade only Gold ETFs between 11:00 AM to 3:30 PM. So if you want to buy Gold as investment do it through your trading and demat account with Zerodha. Find following an image that shows how to add GOLD ETFs on the market watch and remember that to buy GOLD ETFs as an investment you need to have a demat account mapped to your trading account, so you can trade with the product type as CNC. If you want to do intraday trading, use the product type as MIS, but you will have to square it off before the end of the day.
As a small Diwali Gift, all our clients will be able to trade Gold ETFs with Zero brokerage this Dhanteras (November 11, 2012).
If you are unable to see the content above :Download Handbook on Exchange Traded Funds (ETFs) here.
List of Securities available for trading in ETF:
|BANKBEES||Bank Nifty||Goldman Sachs Mutual Fund – Bank Nifty ETF|
|GOLDBEES||Gold||Goldman Sachs Mutual Fund – Gold ETF|
|GOLDSHARE||Gold||UTI Mutual Fund – Gold ETF|
|JUNIORBEES||Junior Nifty||Goldman Sachs Mutual Fund – Nifty Junior ETF|
|KOTAKGOLD||Gold||Kotak Mutual Fund – Gold ETF|
|KOTAKPSUBK||CNX PSU Bank Index||Kotak Mutual Fund – PSU Bank Index ETF|
|LIQUIDBEES||Government Securities||Goldman Sachs Mutual Fund – Liquidbees ETF|
|NIFTYBEES||Nifty||Goldman Sachs Mutual Fund – Nifty ETF|
|PSUBNKBEES||CNX PSU Bank Index||Goldman Sachs Mutual Fund – PSU Bank ETF|
|QGOLDHALF||Gold||Quantum Mutual Fund – Gold ETF|
|QNIFTY||Nifty||Quantum Mutual Fund – Nifty ETF|
|RELBANK||Bank Nifty||Reliance Mutual Fund – Bank Nifty ETF|
|RELGOLD||Gold||Reliance Mutual Fund – Gold ETF|
|SBIGETS||Gold||SBI Mutual Fund – Gold ETF|
|SHARIABEES||Shariah Index||Goldman Sachs Mutual Fund – Shariah Index ETF|
|KOTAKNIFTY||Nifty||Kotak Mutual Fund – Nifty ETF|
|HNGSNGBEES||Hang seng Index||Goldman Sachs Mutual Fund – Hang Seng ETF|
|RELIGAREGO||Gold||Religare Mutual Fund – Gold ETF|
|M50||Nifty||Motilal Oswal Mutual Fund – Nifty ETF|
|HDFCMFGETF||Gold||HDFC Mutual Fund – HDFC Gold Exchange Traded Fund|
|IPGETF||Gold||ICICI Prudential Mutual Fund-ICICI Prudential Gold Exchange Traded Fund|
|INFRABEES||CNX Infra Index||Goldman Sachs Mutual Fund – Infra Goldman Sachs ETS|
|AXISGOLD||Gold||Axis Mutual Fund – Axis Gold ETF|
|M100||Midcap||Motilal Oswal Mutual Fund – Midcap ETF|
|N100||Nasdaq100||Motilal Oswal Mutual Fund – Nasdaq ETF|
|BSLNIFTY||Nifty||Birla Sun Life Nifty ETF – Growth|
|IIFLNIFTY||Nifty||IIFL Mutual Fund – Nifty ETF|
|BSLGOLDETF||Gold||BIRLA SL GOLD ETF|
|RELGRNIFTY||Nifty||RELIGARE MF – NIFTY ETF|
|IDBIGOLD||Gold||IDBI Mutual Fund – IDBI Gold ETF|
|CRMFGETF||Gold||Canara Robeco Mutual Fund – Canara Robeco Gold Exchange Traded Fund|
|MGOLD||Gold||Motilal Oswal Mutual Fund – Motilal Oswal MOSt Shares Gold ETF|
|NIFETF||Nifty||ICICI Prudential Mutual Fund – ICICI Prudential Nifty ETF – GROWTH|
|RELCNX100||CNX100||R Shares CNX 100 Fund|
Hopefully, this clarifies all the doubts on ETFs.
Similar to Gold ETFs, another product which is getting popular of late is E-Gold. To buy E-Gold, your broker has to be a member of the National Spot Exchange (currently Zerodha is not) and the advantage of E-Gold over Gold ETF is that if you intend to take physical delivery of gold, in E-Gold you can for a quantity as small as 8 gm, whereas for a Gold ETF it is 1 kg upwards. Another difference is that you can trade Gold ETF till 3:30 PM (NSE), whereas E-Gold can be traded till the close of commodity markets. GOLD ETFs can be given as collateral for trading on NSE F&O, but E-Gold can’t. If you are looking at the products for investment, it shouldn’t really matter if it is Gold ETF or E-Gold.
*As everyone knows, now that this product ran into trouble with the failure of NSEL, you can read more on NSEL fiasco.
Wishing you all a lot of gold, a very Happy Diwali and a year filled with happiness, success and prosperity.