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Consider the following statements regarding the Gold exchange-traded funds:
- These are passive investment instruments that are based on gold prices.
- These are listed and traded on the National Stock Exchange of India.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding the Gold exchange-traded f...
Gold exchange-traded funds (ETFs) are passive investment instruments that are based on gold prices.
- Gold ETFs are investment funds that are designed to track the price of gold and provide investors with exposure to the precious metal. They are typically structured as passive investment instruments, meaning that they aim to replicate the performance of a particular gold index or benchmark.
- The value of a gold ETF is directly linked to the price of gold, and as such, it provides investors with a convenient and cost-effective way to invest in gold without physically owning the metal.
- Gold ETFs are typically traded on stock exchanges, and investors can buy and sell units of these funds just like they would buy and sell shares of a company. This makes them a highly liquid investment option, as they can be easily bought or sold during market hours.
- The price of a gold ETF is determined by the market forces of supply and demand, just like any other financial instrument. As the price of gold fluctuates, the value of the gold ETF also changes accordingly.
Gold ETFs are listed and traded on the National Stock Exchange of India.
- The National Stock Exchange of India (NSE) is one of the leading stock exchanges in India. It provides a platform for the trading of various financial instruments, including stocks, bonds, derivatives, and exchange-traded funds.
- Gold ETFs are among the many types of ETFs that are listed and traded on the NSE. Investors can buy and sell units of gold ETFs on the exchange, just like they would trade any other listed security.
- The NSE provides a transparent and regulated marketplace for the trading of gold ETFs, ensuring fair and efficient price discovery. It also offers a wide range of trading and investment options, allowing investors to choose from different gold ETFs based on their investment objectives and preferences.
- By listing and trading gold ETFs on the NSE, investors in India have access to a convenient and regulated platform for investing in gold. This helps to democratize access to gold as an asset class and provides investors with a cost-effective and convenient way to gain exposure to the precious metal.
- Gold ETFs are investment funds that are designed to track the price of gold and provide investors with exposure to the precious metal. They are typically structured as passive investment instruments, meaning that they aim to replicate the performance of a particular gold index or benchmark.
- The value of a gold ETF is directly linked to the price of gold, and as such, it provides investors with a convenient and cost-effective way to invest in gold without physically owning the metal.
- Gold ETFs are typically traded on stock exchanges, and investors can buy and sell units of these funds just like they would buy and sell shares of a company. This makes them a highly liquid investment option, as they can be easily bought or sold during market hours.
- The price of a gold ETF is determined by the market forces of supply and demand, just like any other financial instrument. As the price of gold fluctuates, the value of the gold ETF also changes accordingly.
Gold ETFs are listed and traded on the National Stock Exchange of India.
- The National Stock Exchange of India (NSE) is one of the leading stock exchanges in India. It provides a platform for the trading of various financial instruments, including stocks, bonds, derivatives, and exchange-traded funds.
- Gold ETFs are among the many types of ETFs that are listed and traded on the NSE. Investors can buy and sell units of gold ETFs on the exchange, just like they would trade any other listed security.
- The NSE provides a transparent and regulated marketplace for the trading of gold ETFs, ensuring fair and efficient price discovery. It also offers a wide range of trading and investment options, allowing investors to choose from different gold ETFs based on their investment objectives and preferences.
- By listing and trading gold ETFs on the NSE, investors in India have access to a convenient and regulated platform for investing in gold. This helps to democratize access to gold as an asset class and provides investors with a cost-effective and convenient way to gain exposure to the precious metal.
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Consider the following statements regarding the Gold exchange-traded f...
Gold exchange-traded funds (ETFs) attracted Rs 1,028 crore in August, making it the highest inflow in 16 months.
- These are commodity-based exchange-traded funds with an underlying asset as gold.
- These are passive investment instruments that are based on gold prices and invest in gold bullion.
- Gold ETFs are units representing physical gold which may be in paper or dematerialised form.
- One unit of this fund is equal to 1 gram of gold and is backed by physical gold of very high purity.
- They are listed and traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. (BSE).
- There is a complete transparency on the holdings of a Gold ETF due to its direct gold pricing.
Hence both statements are correct.
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Consider the following statements regarding the Gold exchange-traded funds: These arepassive investment instruments that are based on gold prices. These arelisted and traded onthe National Stock Exchange of India.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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