Invest in gold the smart way by opting for Gold ETFs

1. Gold ETFs -A Smart Way to invest
in GOLD

2. Why should you invest in Gold ?
 An Excellent Diversification for your Portfolio
 Hedge against Inflation, Event Risk
 Globally renowned Asset Class
 Intrinsic value

3. Performance of GOLD
Average retuns of Gold in last 15 yrs
35.0%
30.0% An
25.0% Excellent
20.0% Diversifica
15.0% tion for
10.0% Portfolio.
5.0%
0.0%
2001
2007
1998
1999
2000
2002
2003
2004
2005
2006
2008
2009
2010
2011
2012
-5.0%
% Returns
Average return turned –ve only twice in last 15
years.

4. Investment options in Gold
Physical Gold
(Gold Coin,
Bar)/ Jewelry
Commodity exchange
Gold ETFs

5. What is Gold ETF?
 Gold ETFs are exchange traded funds,which facilitates
investor to participate in the gold market without the
necessity of taking physical delivery of gold. In simple
words, the investment in Gold ETF is in demat form.
 Gold ETFs are designed to provide returns in line with
returns provided by physical Gold. The NAV of one unit
closely corresponds to the spot price of 1 gram of gold
after accounting for expenses. Each unit is
approximately equal to the price of 1 gram of Gold.

6. Advantages of Gold ETF
 Potentially cheaper investment option compared to other
forms of gold investment.
 Quick and Convenient dealing through Demat Account.
 No Storage Costs & Security Issues for investors.
 Transparent Pricing.
 Tax efficient-Mutual Fund Taxation, No Wealth-Tax.
 Listed and traded just like a stock.
 Flexibility to buy in small lots (minimum one unit=1 gram
of gold*).
*In case of some Gold ETFs one unit equals half gram of gold.

7. Comparison of Gold ETF vs Gold Bars vs
Jewellery
Transaction
Jewellery Gold Bars Gold ETF
Charges
Making charges of 10% to 20% mark up Brokerage of 0.5% or
Purchase
15-20% charges by banks. even less
Banks do not take it You pay
back , so premium more
10% – 20% is lost paid at time of Brokerage of 0.5% or
Sell
due to Purity issues purchase is written even less
overhead
off. charges
while
Insurance charges Insurance charges
and locker charges and locker charges
investing
Maintenance (if you put it in (if you put it in 1.00% in Gold
locker) locker) Bars and
Long term capital Long term capital
Jewellery
Long term Capital
gain, but after 3 gain, but after 3
tax of, but after 1
Tax Implications years. plus wealth years. plus wealth
year. No wealth tax
tax tax
Overall Gold ETFs outscore other Avenues on the
above parameters

8. NAV’s of Gold ETFs at par with Gold prices
Comparison of Kotak Gold ETF & Spot Gold
price
Monthly Gold Price
3500
3000
2500
2000 Gold Prices
1500 Kotak ETF
1000
500
0
Sep-08
Sep-09
Sep-10
Sep-12
Sep-11
Mar-09
Mar-12
Mar-08
Mar-10
Mar-11

9. Multiple trading platforms to invest in Gold ETFs
Click on Buy / Enter name of the
Log on to
Sell Gold ETF, Units &
trading
www.hdfcsec.com
Price
a/c

10. How to invest in Gold ETFs through us?
Click on Buy / Enter name of the
Log on to
Sell Gold ETF, Units & Place Order
trading Price
a/c
Or
Authenticate
Call our branch Place Order
yourself
You can invest in Gold ETFs just like any equity
scrips. Demat account is mandatory to invest in Gold
Note –
ETFs.

11. Investment Style to be adopted :
• Investing in Gold with Lump sum amount.
• Investing in Systematic Investment Plan way

12. Power of SIP in Gold
Power of SIP in Gold ETF Cost of Investment
Value of Investment
Hundreds 2000
1800
1600
1400
1200
1000
800
600
400
200
0
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Jul-08
Jul-09
Jul-10
Jul-11
Jul-12
If you Invest in 1 Unit of Kotak Gold ETF every month
from March 2008, you would earn approx 19.78%
return on your investment.

13. What is DIYSIP ?
DIYSIP stands for : Do It Yourself Systematic
Investment Plan.
It is a product through which, you can invest in
stocks, Gold ETFs & Index ETFs in a disciplined
manner.
It helps you use market volatility to your advantage &
build your own portfolio over a period of time.

14. Benefits of Investing in DIYSIP way…
• Power of Compounding Effect
It refers to process of earning returns on
reinvestment of assets, which have already
generated returns. This means the asset will be
generating returns on an asset’s reinvested
earnings.
• Rupee cost Averaging
Time in the market is better than timing the
market
• Convenience and Light on pocket
You can start investing in one unit of Gold ETFs
every month

15. How to start your DIYSIP online
 Logon to your trading account Visit
www.hdfcsec.com
 Click on DIYSIP
 Select Online registration
 Enter the Name of the Gold ETF
 Enter the No. of units
 Authenticate using your Login id &
Password
 Confirm

16. Thank you
For any further queries, visit our
website www.hdfcsec.com or call
our customer care @39019400