Update: Click here to read about the latest SBI Gold Fund launched on 19 August 2011.
SBI GETS is a Gold ETF by SBI and is open to investors in India. You can invest in this ETF through a stock exchange much like any other stock.
The SBI Gold ETF invests in physical gold, and at any time - it will have 90% – 100% of its investments in gold and gold bullion. Up to 10% of its investments can be in debt and money market instruments.
The expense ratio of this scheme is 2.5% for Plan A and 1.5% for Plan B. Plan A is for retail investors and Plan B for institutional investors. So retail investors should really think about the expenses as 2.5% of average daily net assets.
Bank of Nova Scotia is the gold custodian for this scheme and all the physical gold will be held with either them or sub custodians appointed by them.
The price of SBI Gold ETF is dependent on two things:
- Price of gold: Since this is an ETF that invests in gold, the price and NAV will be dependent on the gold that this ETF owns, and the price movement of gold.
- Demand and supply: At the same time, this is an ETF, so it trades on a stock exchange and therefore the value of the ETF also depends on the how it is trading.
Because of these two factors it is possible that the market price is different from the NAV of the ETF. It can be higher or lower based on the demand in the market.
SBI publishes its latest NAVs on its website and you can find that here. You can take a look at the latest NAV of SBI GETS, and then compare it with the price it is trading at on the stock exchange to find out the difference between NAV and actual market price at any given time.
SBI Gold ETF is one of six Indian gold etfs available to Indian investors right now.
This is a brief summary of this plan and is not a buy or sell recommendation. It doesn’t cover several risk factors related to the price of gold or ETFs..
Click here to read about the latest SBI Gold Fund launched on 19 August 2011.
Hi, Manshu, how are you?
Now in this present scenario how do you see the future of gold.
plz send the details how we can invest in sbi gold ETF
we are placed at baddi himachal pradesh
Hi Manshu,
I have following queries,
1. Is the GoldBees is an foreing company – USA?
2. To invest for long term say 10 years or more than 10 years which one would be the best ETF SBI or GoldBees?
1. It is owned by a US company – Goldman Sachs.
2. There should be little difference.
Thanks.
Please explain that little difference as well?
If you read this post from some time ago Harsha, then this should help clarify some of the questions you have.
http://www.onemint.com/2011/08/16/gold-etf-in-india-performance-and-volumes-in-last-year/
HI MANSHU,
PLEASE SEND ME BROCHEOURE FOR INVESTING IN SGI GOLD ETF AS EARLY AS POSSIBLE. I WANT TO INVEST SMALL QUANTITY OF UNIT THROUGH MUTUAL FUND.
THANK U YAAR.
BROJA GOPAL
i am interested in sbi gets. i want to invest in regular interval ( monthly). what is the minimum amount / qty that i can purchase each time. actually i may require physical gold after 20-22 years from now. please advice me whether this kind of investment is suitable for me.
The least you can get is one unit which is about Rs. 2800 right now. ETFs won’t allow you to convert these units to gold but that will probably not make too much difference to you since you can sell the units at the prevailing gold price at the time and then buy gold.
Hi Manshu..
I want to invest in gold but at this current scenario at Rs.280000/ per 10gms.. its not seem good or profitable.. suggest me what do I do at this stage?
Hi Mohini,
I’ve been wary of gold for the past two years and had you listened to me you would have missed the appreciation in the last two years. But, my view has still not changed about gold, and I’m personally staying away from it. In my opinion, if you are interested then you can go invest in it in small quantities not exceeding 5% or so of your portfolio.
I want to know ,IF I WILL BOOK Rs 10 lacs in PHYSICAL GOLD IN CURRENT RATE THROUGH SBI GETS ,WILL IT POSSIBLE I WILL PAY THE WHOLE AMOUUNT OF RS 10 LACS IN 180 MONYHLY INSTALEMENT and what will be the rate of interest.
If understand this comment correctly – you want to know two things.
1. Can you lock into a price right now, and continue buying gold at that price even when the price of gold goes up?
No, you can’t do that.
2. Can you get physical gold after buying GETS?
No, you can’t do that either. Let me know if my understanding is correct, or you want to know something else.
dear sir ,
i want to invest in sbi gold etf . but i do not know much about it .what is the procedure .
what a minimum amount in sip plan yearly? please tell me in detail
Saroj – An ETF can be bought exactly like a share, so if you have ever bought a share then you can buy the ETF in the same manner. If not, then there are mutual funds that invest in ETFs and you can do SIP in them. Have you every bought a share in the share market, are you familiar with how that is done?
i would like to invest in gold so give me suggestion where better to buy gold coin or share certificate ? i am new
Tell me about sbi gold etf plus points and negative points.
Did you read the post? What did you make out of it? Here is another post on best gold ETF that might help you.
http://www.onemint.com/2010/04/19/which-is-the-best-gold-etf-in-india/
Manshu,
What exactly does expense ratio means? How it will impact investments in ETF? Planning to invest in SBIGETF now. Whatz your opinion, do you think is it the right time to invest? Please advise. Thanks in advance.
Suman,
Every mutual fund incurs some expenses to run its operations. These expenses are expressed as a percentage to its assets, so if you run a fund with assets of Rs. 100, and your Expense Ratio is 1% then that means you spend one rupee in expenses and this is deducted from NAV. So, expenses reduce the NAV of ETFs, and the lower the expense ratio the better it is.
As for investing GETS…..I guess I should point you towards my post on comparison of gold ETFs, and my take currently on gold (though this is just the opinion of some blogger on the internet 🙂
http://www.onemint.com/2010/04/19/which-is-the-best-gold-etf-in-india/
http://www.onemint.com/2010/10/07/my-opinion-on-gold-and-silver/
pls advise good time to invest in gold etf.Also can i get a market study chart of last 3 years of gold etf.
interested in SBI GOLD ETF. Please let me know the procedure for this. Can local SBI branch provide help for investment?
i am interested in gold etf. so please contact me in -9433098065
Sir,
i want to invest in SBI Gold ETF.i want to know what are the procedure to invest in gold
thanks ®ards
Bharati.
It is just like a stock or share Bharti. You can buy an ETF in the same way you buy a stock. Contact your broker and he will help you. Here is a post I did on the subject too.
http://www.onemint.com/2009/10/20/how-to-buy-etfs/
If you have any questions, leave a comment, and I will try and answer them.
Good Morning,
I want to invest in gold ETF, I have read the details, but have some doubts ,
1. If I buy a Gold ETF now, can I sell it in the same bank at anytime I like?
2. what are the additional charges an ETF is subjected to?
3. Any Risk factors?
4. when exactly should I buy , a small advice from you side?
5.
I would like to go for sbi gold etf.
Sir,
i want to invest in SBI Gold ETF. I want to know what is the procedure to invest in gold
Attma Nand
plz send the details how we can invest in sbi gold ETF
we are placed at bahraich (U.P.)
Ritesh you can can buy an ETF just like you buy any stock or share. Do you have a broker? You can buy ETFs from your broker.
sir,
i want to invest in SBI Gold ETF.i want to know what are the procedure to invest in gold
Sir,
i want to invest in SBI Gold ETF.i want to know what are the procedure to invest in gold
thanks ®ards
Sapna
You can invest in it like any other stock or share. You can use your current broker to buy it.
what will be better for investment e-gold or gold etf ?