Tata Gold ETF Fund of Fund

Tata Gold ETF invests in Tata Gold Exchange Traded Funds (ETFs). The fund is designed for investors who want to invest in gold without physically maintaining it. Gold ETFs track the price of gold, and Gold Mutual Funds invest in these ETFs. 

With minimum investments via SIP starting at just ₹500, Tata Gold Mutual Fund offers investors a hassle-free and cost-effective method of investing in Gold. The fund invests at least 95% of its assets in equity and equity-related instruments. The remaining is invested in debt and money market instruments to diversify.

Investment Strategy

The fund mirrors the performance of gold, while also ensuring liquidity. Tata AMC’s strategy focuses on using gold as a long-term asset class that historically performs well during economic stress, currency depreciation, and periods of negative real interest rates. The fund manager employs extensive research and maintains an approach to ensure that tracking error is minimised.

Taxation on Tata Gold ETF (Fund of Fund)

Tax on your gains from the Tata Gold ETF fund depends on whether you are following the old tax regime or the new regime. When you sell your investments in the fund within 24 months, the gains are considered Short-term Capital Gain (STCG), and investments sold after 24 months are considered Long-term Capital Gain (LTCG). 

Taxes under the Old Tax Regime (Before April 1, 2025) are as follows: 

STCG: 20% with indexation

LTCG: 12.5% without indexation

Taxes under the New Tax Regime (From April 1, 2025) are as follows: 

STCG: Taxed as per the Income Tax slab

LTCG: Taxed as per the Income Tax slab

Who Should Invest In Tata Gold ETF Fund?

Gold has historically outperformed equities in times of crisis, Hence, they are a suitable investment option for people who wish to hedge against inflation, currency depreciation or market volatility. They are ideal for investors who:

-Want to diversify their portfolio

-Have a long-term investment horizon

-Have a moderate to high-risk appetite.