May 13 2010 , New Delhi
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) has decided to allow trading of gold exchange-traded funds (ETFs) on Sunday May 16, the day on which Akshaya Tritiya falls this year. Akshaya Tritiya is considered an auspicious day for buying gold.
BSE said it will keep a special window open for trading in gold ETFs on on May 16. The exchange will keep the market open from 9 am to 3.30 pm on Sunday,
In a press statement issued on Thursday, NSE said, “Due to the increasing popularity of gold ETFs with retail investors, NSE has decided to have live trading session on May 16, 2010 only for trading in gold ETF’s. Trading will be allowed in gold ETF’s between 9 am and 3.30 pm.”
Brokers and fund managers told FC that in the past two-three years, sales of gold ETFs have seen a considerable jump on the day of Akshaya Tritiya.
Gold ETFs are traded in exchanges and each unit of a gold ETF is equivalent to 1 gm of gold. In India, there are seven fund houses – Reliance, Religare, SBI, Qunatum, Kotak, Benchmark and UTI Mutual Fund – sell gold ETFs. Gold ETFs in the past three months have appreciated by 9 per cent against average return of 5.86 per cent from diversified equity funds. “Though traditionally, physical gold is bought on the day of Akshaya Tritiya but over the past two-three years, even gold ETFs have seen a surge in sales. This is primarily because of the convenience gold ETFs provide. Unlike physical gold, there are no quality, safety or storage issues associated with gold ETFs. Because of this, the general perception about gold ETFs is changing fast,” Rakesh Goyal, senior VC, Bonanza Portfolio, said.
Surjeet Mishra, head, mutual funds, Bajaj Capital, said that in the past couple of years, gold ETF sales usually went up by 5-10 per cent but due to strong sentiments in gold prices, sales may rise by up to 25 per cent this year.
BSE said it will keep a special window open for trading in gold ETFs on on May 16. The exchange will keep the market open from 9 am to 3.30 pm on Sunday,
In a press statement issued on Thursday, NSE said, “Due to the increasing popularity of gold ETFs with retail investors, NSE has decided to have live trading session on May 16, 2010 only for trading in gold ETF’s. Trading will be allowed in gold ETF’s between 9 am and 3.30 pm.”
Brokers and fund managers told FC that in the past two-three years, sales of gold ETFs have seen a considerable jump on the day of Akshaya Tritiya.
Gold ETFs are traded in exchanges and each unit of a gold ETF is equivalent to 1 gm of gold. In India, there are seven fund houses – Reliance, Religare, SBI, Qunatum, Kotak, Benchmark and UTI Mutual Fund – sell gold ETFs. Gold ETFs in the past three months have appreciated by 9 per cent against average return of 5.86 per cent from diversified equity funds. “Though traditionally, physical gold is bought on the day of Akshaya Tritiya but over the past two-three years, even gold ETFs have seen a surge in sales. This is primarily because of the convenience gold ETFs provide. Unlike physical gold, there are no quality, safety or storage issues associated with gold ETFs. Because of this, the general perception about gold ETFs is changing fast,” Rakesh Goyal, senior VC, Bonanza Portfolio, said.
Surjeet Mishra, head, mutual funds, Bajaj Capital, said that in the past couple of years, gold ETF sales usually went up by 5-10 per cent but due to strong sentiments in gold prices, sales may rise by up to 25 per cent this year.
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