NSE saw trading worth Rs 1337 crore while BSE records Rs 894 crore on Dhanteras.
Gold ETF trading volumes jumped on NSE and BSE on Dhanteras. The demand for gold generally shoots up during Dhanteras which is considered to be an auspicious day for buying the yellow metal.
NSE recorded trading volume to the tune of Rs 1337 crore, the highest ever, compared to Rs 636 crore on Dhanteras last year. About 70,440 investors traded in gold ETF units on NSE. BSE saw trading worth Rs 894 crore compared to Rs 60 crore last year.
Both NSE and BSE had kept a special trading session in gold ETFs on Sunday.
Gold ETFs offer a purity of 99.5% and there are premium charges involved. Investors don’t have to bear any wealth tax and Value Added Tax (VAT) for holding Gold ETFs.
Gold ETFs have delivered 11 % returns in the last one year. The first Gold ETF was launched by Benchmark Mutual Fund (now Goldman Sachs Mutual Fund) in March 2007. It had collected Rs 99 crore.
Rising gold prices in the last five year has led more people rush to buy gold. Today, 14 fund houses provide Gold ETFs which together hold assets worth Rs 11447 crore as on September 2012.
As on September 2012, the largest pie in the Gold ETF market is held by Goldman Sachs which manages Rs 3023 crore followed by Reliance (Rs 2899 crore), SBI (Rs 1201 crore), (Kotak Rs 1135 crore), UTI (Rs 701 crore), HDFC (Rs 687 crore). Many AMCs have launched gold fund of funds, which invest in gold ETFs for those who do not possess demat accounts.
