Given the returns silver has yielded in the past, everyone wants to invest in it. In this digital age, you don't need to buy physical silver or gold to invest in them. You can also invest in silver through Silver ETFs and mutual funds.
We are often confused between ETFs and mutual funds. It's difficult to understand which one will yield more profit. Let's first understand the difference between the two.
When it comes to returns, it depends on the ETF and mutual fund you choose. It doesn't matter whether you choose a mutual fund or an ETF for investment.
Meaning: under a gold mutual fund, the company invests in gold, gold ETFs, and related assets such as gold products and mining companies. Under a gold ETF, your money is invested in bullion or futures contracts. A gold ETF is an instrument that tracks the performance of gold.
Demat Account : You do not need a Demat account to invest in this. You need a Demat account to invest in this because you invest through a brokerage app.
Charges : In gold mutual funds, you have to pay charges like entry load and exit load, similar to other mutual funds. In gold ETFs, you will have to pay brokerage charges.
Tax: The profits earned from this fall under capital gains tax. Therefore, STCG and LTCG taxes will apply. The profits earned from this fall under capital gains tax. Therefore, STCG and LTCG taxes will apply.
When it comes to returns, it depends on the ETF and mutual fund you choose. It doesn't matter whether you choose a mutual fund or an ETF for investment.
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