Stocks That Hit Circuit Limits On April 4, 2025: Balu Forge, Web Solar and More

On April 4, 2025, BSE Sensex closed 1.22% lower at 75,364.69, while Nifty50 settled lower at 22,904.45, down 1.49%. Amidst the market downturn, stocks like Balu Forge and Web Solar hit circuit limits, reflecting significant price movements. Check out the full list of stocks hitting circuits today.

Stocks That Hit Lower Circuit on April 4, 2025

Symbol LTP %chng Price Band % Volume(Lakhs) Value(₹ Crores)
BALUFORGE 614 -7.7 10 20.49 126.5
GOLDIAM 310 -15.85 20 31.92 102.33
PGIL 1,061.00 -15.9 20 7.76 81.14
WOCKPHARMA 1,347.80 -5 5 5.9 80.2
TARIL 495 -3.84 5 8.24 41.06

Stocks That Hit Upper Circuit on April 4, 2025

Symbol LTP %chng Price Band % Volume(Lakhs) Value(₹ Crores)
WEBELSOLAR 1,268.00 1.39 5 7.03 91.05
TARC 148.99 4.54 5 51.56 76.28
KITEX 199.2 5 5 36.48 72.33
NACLIND 136.83 5 5 48.49 65.64
VAKRANGEE 11.35 4.32 5 327.53 37.08

Overview of Companies Hitting Circuits Today

  • Balu Forge

Balu Forge fell 7.7% to ₹614 with a 10% price band restriction, trading at a volume of 20.49 lakh shares valued at ₹126.5 crores.

  • Wockhardt Pharma

Wockhardt Pharma decreased 5% to ₹1,347.80, with a 5% price band and a total volume of 5.9 lakh shares valued at ₹80.2 crores..

  • Web Solar 

Web Solar increased 1.39% to ₹1,268, reaching the 5% price band, with 7.03 lakh shares traded, worth ₹91.05 crores.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

Jupiter Wagon Shares Down Over 2%: Subsidiary Jupiter Tatravagonka Acquired Land

On April 4, 2025, Jupiter Wagon shares fell over 2%, reaching a day low of ₹361.55 at 1:20 PM, after opening at ₹379.90. The fall in Jupiter Wagon share price came despite the company’s arm Jupiter Tatravagonka Railwheel Factory Private Ltd (JTRF), has acquired land in Haldiapada, Khordha, Odisha, for the establishment of India’s first private-sector Railwheel and axle forging plant.

Investment of ₹2,500 Crore for Expansion 

This marks a significant milestone in the company’s expansion and enhances Odisha’s position as a hub for advanced industrial manufacturing. The facility will be the first privately owned railway heavy engineering industry in the state.

Jupiter Tatravagonka plans to invest ₹2,500 crore in stages over the coming years to develop this state-of-the-art facility. The plant is projected to produce 100,000 forged wheelsets annually, serving both domestic and international markets, with nearly half of the production earmarked for exports—mainly to Tatravagonka A.S., a leading Slovakian rail infrastructure company, and other European firms.

Plans to Commence Operation by 2027

Set to begin operations by 2027, the Odisha plant will play a key role in strengthening India’s railway manufacturing capabilities while contributing to the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. It is expected to generate thousands of direct and indirect jobs, boosting economic growth in the region.

The plant will feature cutting-edge technology to support higher-speed and high-load railway operations. By manufacturing essential railway components domestically, Jupiter Tatravagonka will reduce India’s reliance on imports and expand its global trade presence, particularly through exports to Europe.

On this occasion, Mr. Vivek Lohia, Managing Director, Jupiter Group stated ” The acquisition of land in Odisha marks a significant milestone in our commitment to strengthening India’s self-reliance in rail manufacturing. This facility is a testament to the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, ensuring that India not only meets its domestic railway needs but also emerges as a leading exporter of high-quality railwheel and axle components. With the strong support of the Government of Odisha, we are confident that this project will drive industrial growth, generate employment, and cement India’s position as a global hub for rail infrastructure.”

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Paras Defence Shares Slipped ~3% Despite Signing of MoU with Israel Firm

On April 4, 2025, Paras Defence share price slumped ~3%, reaching a day low of ₹973.05 12:55 PM, after opening at ₹1015.00 on BSE. The fall in Paras Defence shares came despite the announcement for signing of MoU, which is positive business development. On April 3, 2025, Paras Defence and Space Technologies Ltd entered into a strategic Memorandum of Understanding (MoU) with MicroCon Vision Ltd, Israel, a subsidiary of Controp and the Rafael Group, to bolster India’s defence and drone technology sectors.

Scope of MoU

As part of the agreement, Paras Defence will become the exclusive supplier of advanced drone camera technology in India, offering these systems at significantly reduced costs. The company will integrate high levels of indigenous content into these drone cameras and Intelligence, Surveillance, and Reconnaissance (ISR) payloads, boosting India’s self-reliance while reducing expenses.

Paras Defence plans to offer two models, typically priced at around ₹20 lakh and ₹40 lakh per unit. The company expects to reduce the cost of each model by 50-60%, making advanced surveillance technology more accessible to both Indian defence forces and commercial sectors.

MicroCon will exclusively supply Paras Defence with drone cameras, including ISR payloads and Electro-Optical/Infrared (EO/IR) seekers, while Paras Defence will become MicroCon’s exclusive partner for ISR operations in India. This partnership aligns with MicroCon’s strategy to expand its presence in India’s rapidly growing drone market.

Benefit to Indian Defence Market 

The MoU aims to expand both companies’ reach in the Indian ISR payload market. The integration of cutting-edge technologies such as AI-powered analytics, high-resolution imaging, and thermal vision will enhance surveillance capabilities, improving operational efficiency in both defence and civilian applications.

Management Take on Signing of MoU

“This collaboration represents a major leap forward in India’s defence capabilities,” stated Munjal Sharad Shah, Managing Director of Paras Defence. “We are committed to supporting India’s strategic goals and are proud to partner with MicroCon in this groundbreaking endeavour.”

“MicroCon is committed to delivering cutting-edge ISR payloads that drive the future of defence and surveillance systems,” said Chen Almog, CEO of MicroCon. “We are excited about our collaboration with Paras Defence, which is a key component of our strategy to establish strong local partnerships worldwide. We are confident this partnership will drive growth in the Indian tactical ISR and EO/IR seekers market. By combining MicroCon’s global expertise with Paras Defence’s local insights, we will foster innovation and strengthen the defence infrastructure. This partnership reflects our shared vision for advancing high-performance drone technology and creating lasting impact on both defence and commercial applications.”

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why is the Market Down Today?

On Friday, April 4, 2025, the Indian stock markets fell sharply due to a global selloff sparked by renewed recession fears and sweeping tariff announcements by U.S. President Donald Trump. In morning trade, the Sensex dropped 836 points, or 1.09%, to 75,457, while the Nifty50 fell 304 points, or 1.3%, to 22,945. At 12:20 PM, BSE Sensex was down 0.93% to 75,582.83, while Nifty 50 tumbled 1.19% to 22,974.25

Broad-based selling pulled all sectoral indices into the red, with sharp losses in metal, pharma, and IT stocks. The market capitalisation of all BSE-listed firms declined by ₹9.47 lakh crore to ₹403.86 lakh crore. In this article, we have covered probable reasons behind today’s market fall.

Reason Behind the Market Fall Today 

1. Trump’s tariff shock sparks global trade war fears

Donald Trump reignited global trade tensions by announcing a blanket 10% baseline tariff on all imports into the US with large trade surpluses, including India, will face higher tariffs — India (26%), China (34%), EU (20%), South Korea (25%), Vietnam (46%), Taiwan (32%) and Japan (24%).

2. Global Selloff Accelerates on Recession Fears

Recession worries deepened after Wall Street recorded its steepest single-day fall since 2020. The S&P 500 lost $2.4 trillion in market value overnight, dragging other major global indices into the deep red. Japan’s Nikkei plunged 3.4% and was on track for its worst week since the COVID-19 crash in March 2020. Investor sentiment was further dampened by a flight to safety, with gains in U.S. Treasuries and gold underscoring growing risk aversion.

3. Pharma Stocks Slump on Tariff Warning

Indian pharma shares were among the worst hit after Trump hinted at upcoming tariffs specifically targeting the pharma sector. Stocks such as Aurobindo Pharma, Laurus Labs, IPCA Laboratories, and Lupin dropped up to 7%. The remarks come just a day after pharma stocks had rallied on expectations that the sector would be spared from trade restrictions.

4. Heavyweight Stocks Drag Indices

Index heavyweight Reliance Industries also contributed to the selloff, alongside broad declines in Nifty Pharma (-6.2%), Nifty Metal (-5.3%), and other sectors, including IT, Auto, Realty, and Oil & Gas, which fell between 2-4%. The across-the-board decline highlights nervous investor sentiment amid mounting global uncertainty and sector-specific risks.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why Did Vedanta Shares Fall Over 7% Today?

On April 4, 2025, Vedanta share price tanked 7%, reaching a day low of 403.50 at 11:55 AM, after opening at 435.65 on BSE. The drop in Vedanta shares came after the company released its production update for Q4FY25 and FY25. The company posted record production figures across key business verticals for the Q4 and financial year ending March 31, 2025. Vedanta reached historic highs in aluminium and zinc production, along with strong growth in iron ore, steel, oil and gas, and power sales.

Aluminium Production

Vedanta achieved a record annual aluminium production of 2,421 kt, marking a 2% increase year-on-year. The Q4 output saw a 1% rise. Alumina production increased by 9% annually, driven by expansion projects. However, quarterly output was impacted by temporary supply chain disruptions, which normalized by the end of the quarter.

Zinc Production

  • Zinc India: The company achieved its highest-ever mined metal production at 1,095 kt and refined metal production at 1,052 kt, both showing a 2% increase year-on-year. Mined metal production grew by 17% sequentially in the fourth quarter, driven by higher grades at the Agucha and Zawar mines, while refined metal output rose by 4%. Saleable silver production increased by 10% in the quarter.
  • Zinc International: Zinc International saw a 52% year-on-year jump in total mined metal production and a 9% sequential rise. This was attributed to higher throughput at the Gamsberg and improved grades at BMM. Gamsberg’s fourth-quarter production surged 89% year-on-year and 15% sequentially, driven by better recoveries.

Oil and Gas Production

Oil and gas production from OALP blocks reached 3.5 kboepd during the quarter, supported by ramp-up at the Jaya discovery. The annual average gross operated production across assets was 103.2 kboepd.

Iron Ore Production

Iron ore production surged by 36% sequentially in the Q4, supported by increased inventory utilization at IOK and mine ramp-ups at IOG.

Pig Iron and Steel Production

  • Pig Iron: Vedanta recorded a 4% year-on-year increase in pig iron production, reaching a record high.
  • Steel: Total saleable steel output grew by 4% year-on-year and 8% sequentially, boosted by operational efficiencies and higher hot metal production.
  • Ferro Chrome: Ferro chrome production under FACOR grew by 4% year-on-year.

Copper Production

Copper India saw a 41% year-on-year increase in fourth-quarter production, contributing to a 6% rise in annual copper production.

Power Sales

  • Overall Power Sales: Power sales saw an 18% sequential increase in the fourth quarter. TSPL’s annual power sales reached 10,230 million units with an 81% plant availability factor.
  • Balco: Balco recorded a 15% sequential and 18% year-on-year growth in power sales for the fourth quarter.
  • HZL: Hindustan Zinc’s wind power generation improved by 33% sequentially.
  • Jharsuguda: Power sales at Jharsuguda rose by 28% during the quarter.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

D-Mart Share Price Fell 3% After Release of Q4FY25 Business Update

On April 4, 2025, Avenue Supermarts shares (D-Mart share price) fell ~3%, reaching a day low of ₹3,941.05 at 11:30 AM, after opening at ₹4,163.35 on BSE. The drop in D-Mart share price came after the retail chain operator reported a standalone revenue of ₹14,462.39 crore for Q4 FY25, reflecting a 16.7% increase from ₹12,393.46 crore during the same period last year. The company continued its growth trajectory, finishing the quarter with 415 stores.

Growth in Revenue

Revenue has consistently risen over the years, growing from ₹8,606.09 crore in Q4 FY22 to ₹10,337.12 crore in Q4 FY23 and ₹12,393.46 crore in Q4 FY24. The latest Q4 revenue figure is still subject to audit.

DMart has expanded steadily, strengthening its presence across 12 states and union territories. In the previous quarter, the company added 10 new stores, bringing the total number of stores to 387 by the end of Q3 FY25.

Investment in Subsidiary

In March 2025, Avenue Supermarts announced an investment of ₹174.99 crore into its subsidiary, Avenue E-Commerce Ltd (AEL), which runs the online grocery platform DMart Ready.

The investment, disclosed in a regulatory filing on March 19, 2025, underscores the company’s strategy to boost its e-commerce presence in response to growing digital demand in the retail industry. These funds will support AEL’s operational needs, working capital, and capital expenditure, helping to grow and enhance DMart Ready’s infrastructure and services.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Gold ETFs See Record Inflow in Feb 2025: Check Top Gold ETFs

Gold exchange-traded funds (ETFs) are experiencing strong demand from investors as geopolitical tensions rise and gold prices climb. A report from ICRA Analytics revealed that inflows into gold ETFs surged by 98.54% year-on-year, reaching ₹1,979.84 crore in February 2025, compared to ₹997.21 crore during the same period last year.

The net assets under management (AUM) for gold ETFs nearly doubled, increasing from ₹28,529.88 crore in February 2024 to ₹55,677.24 crore in February 2025.

Top-Performing Gold ETFs

Here are the best-performing gold ETFs based on their returns:

Gold ETFs 1-Year (%) 5-Year (%)
ICICI Prudential Gold ETF 29.85 14.04
HDFC Gold Exchange Traded Fund 29.53 14.50
SBI Gold ETF 29.46 13.60
Kotak Gold ETF 29.45 13.76
Nippon India ETF Gold BeES 29.06 14.35

Why are Investors Choosing Gold ETFs?

Gold ETFs are becoming increasingly popular due to their liquidity, transparency, and cost-effectiveness. Unlike physical gold, they remove concerns related to storage, purity, and theft. ICRA Analytics noted, “With gold historically considered a safe-haven asset, many investors are turning to ETFs during times of economic and geopolitical uncertainty.”

Should You Invest in Gold ETFs?

Experts recommend including gold in a diversified portfolio, especially during uncertain times. Although gold prices have risen, investors are advised to evaluate their financial goals and risk tolerance before making investments. Gold ETFs offer an easy way to gain exposure to gold without the complexities of physical ownership.

However, it’s essential for investors to stay informed about market conditions and consult financial advisors before making investment decisions.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Upcoming IPO: Pace Digitek Filed DRHP With SEBI to Raise ₹900 Crore

Pace Digitek Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in preparation for an initial public offering (IPO) to raise ₹900 crore. Pace Digitek is a multidisciplinary solutions provider focused on the telecom passive infrastructure sector, including telecom tower infrastructure and optical fiber cables.

Pace Digitek IPO Details

The proposed upcoming IPO will consist of a fresh issue of equity shares with a face value of ₹2, totaling up to ₹900 crore. The company may also consider a pre-IPO placement of equity shares up to ₹180 crore. If the pre-placement is completed, the funds raised will be deducted from the fresh issue..The issue will be allocated as follows: up to 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. The equity shares are intended to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), according to the DRHP.

Use of Net Proceeds

The company plans to use the net proceeds to allocate ₹630 crore towards capital expenditure, including investments in its subsidiary, Pace Renewable Energies, and for the establishment of battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company. The remaining funds will be utilized for general corporate purposes.

MUFG Intime India will serve as the registrar for the issue, while Unistone Capital has been appointed as the sole book-running lead manager.

About Digitek Limited

Founded in March 2007, Pace Digitek is a multi-disciplinary solutions provider with a strong presence in the telecom passive infrastructure sector. The company offers end-to-end turnkey solutions and operates across India, as well as in Myanmar and Africa. Initially a manufacturer of passive electrical equipment, the company has expanded its operations to include products, projects, operations and maintenance (O&M), and services.

For the six months ending September 30, 2024, Pace Digitek reported a revenue of ₹1,188.35 crore from operations, with a profit after tax (PAT) of ₹152 crore. In FY24, the company’s revenue from operations grew to ₹2,434.48 crore, up from ₹503 crore in FY23. Its PAT also saw a significant increase, rising to ₹229.87 crore in FY24 from ₹16.5 crore in FY23.

 

 

 

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Is Brightcom a Debt-Free Company? A Closer Look at Their Financial Health

Brightcom group shares have been in a trading suspension for over 9 months now, and there is no clarity on the revocation of the suspension. On April 2, 2025, Brightcom Group released a weekly update wherein it stated that it is difficult to provide an exact timeline for the revocation of trading suspension as the matter is currently before the Court.

The company is diligently exploring all options to obtain the Court’s approval for an early revocation—possibly within days. While remaining optimistic for a quick resolution, we are also ready to handle any unforeseen developments in case of delays.

Is Brightcom a Debt-Free Company?

In Q2 FY24, consolidated revenue reached ₹1,814 crores, compared to ₹1,683 crores in the same quarter of the previous year, reflecting a growth of 7.8%. Consolidated PAT stood at ₹352 crores, up from ₹321 crores in Q2 of the previous year, representing a growth of 9.7%. As of September 2024, the company reported a reserve of ₹7,763 crore and nil borrowing, making it a zero-debt company.

The current product offerings include ad campaigns across Video, Banners, Email, Search, Social, and Mobile marketing. The process focuses on monetizing ad traffic by targeting very specific demographics with high buying power, making this the most profitable vertical. We are exploring options to strengthen operations in the APAC and EMEA markets.

Brightcom Group Outlook

  • DOOH / Audio OTT / Data Monetisation: The focus is on Digital Out-Of-Home (DOOH), Audio, OTT, and Podcast platforms, alongside sensor and data monetization. Additionally, there is an emphasis on the physical web from a monetization standpoint.
  • AI / ML and Quantum Computing: Brightcom Group aims to build analytical and predictive models using AI, Machine Learning (ML), and Quantum Computing, offering higher speeds and solving complex problems.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Best Gold ETFs in India for April 2025 – Based on 5Y CAGR

Investing in gold has always been a hedge for investors as it has been considered a safer bet traditionally due to its increasing prices over the years. In the realm of gold investing, there are many ways to invest in gold, such as gold bonds, gold mutual funds, gold ETFs, physical gold and more. In this read, we will explore the Best Gold ETFs in India for April 2025 based on 5Y CAGR.

A Gold ETF is an exchange-traded fund that seeks to mirror the price of domestic physical gold. These are passive investment vehicles tied to gold prices and typically invest in gold bullion. Listed and traded on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange Ltd. (BSE), Gold ETFs function similarly to company stocks. They are traded on the cash segment of both BSE and NSE, allowing for continuous buying and selling at market prices.

Best Gold ETFs in India for April 2025

Name Market Cap (₹ Crore) 5Y CAGR (%)
HDFC Gold Exchange Traded Fund 1,906.09 14.83
ICICI Prudential Gold ETF 1,905.05 14.80
Nippon India ETF Gold BeES 5,168.88 14.79
SBI Gold ETF 2,644.09 14.05
Kotak Gold ETF 1,984.14 13.68

Note: The Gold ETFs mentioned above have been selected and sorted based on 5Y CAGR as of April 3, 2025

Overview of the Best Gold ETFs in India

1. HDFC Gold Exchange Traded Fund

The HDFC Gold ETF is an exchange-traded fund designed to mirror the performance of gold. It offers investors a simple and affordable way to invest in gold through digital means.

Key Metrics

  • Alpha: 9.87
  • NAV: ₹78.22

2. ICICI Prudential Gold ETF

ICICI Prudential Gold ETF aims to provide investment returns that track the performance of domestic prices of Gold derived from the LBMA AM fixing prices.

Key Metrics

  • Alpha: 10.04
  • NAV: ₹78.03

3. Nippon India ETF Gold BeES

Nippon India ETF Gold BeES is an ended scheme, listed on the Exchange in the form of an Exchange Traded Fund (ETF) investing in physical gold.

Key Metrics

  • Alpha: 9.52
  • NAV: ₹76.05

4. SBI Gold ETF

SBI Gold ETF invests in gold and gold-related instruments, and the objective of the scheme is to track the price of gold.

Key Metrics

  • Alpha: 9.91
  • NAV: ₹78.15

5. Kotak Gold ETF

Kotak Gold ETF is an open-ended gold exchange-traded fund which invests in physical gold and endeavors to track the domestic spot price of gold as closely as possible.

Key Metrics

  • Alpha: 10.41
  • NAV: ₹76.39

Benefits of Investing in Gold ETFs

  • Diversification: Gold has historically been a haven asset. It often performs well during times of market volatility or inflation. Investing in Gold ETFs can help diversify your portfolio, balancing risk and potentially boosting long-term returns.
  • Liquidity: Gold ETFs are traded on stock exchanges just like regular stocks, making them highly liquid. You can buy or sell your investment during market hours, which offers flexibility and convenience.
  • No Physical Storage Hassles: When you buy physical gold, you need a safe and secure place to store it, which can be costly. Gold ETFs eliminate the need for physical storage, as the gold is held by the ETF issuer in a secure vault.
  • Lower Costs: Gold ETFs typically have lower transaction costs compared to buying and selling physical gold, as there are no premiums or VAT (in most jurisdictions) associated with purchasing physical gold.

Factors to Consider Before Investing in Gold ETFs:

  • Expense Ratio: Gold ETFs usually charge an annual management fee, which is the “expense ratio.” While these fees are generally low compared to other types of funds, it’s still essential to compare the expense ratios of different Gold ETFs.
  • Underlying Assets: Some Gold ETFs are backed by physical gold stored in vaults, while others may be backed by gold futures contracts. The type of asset backing the ETF can affect its risk and performance. Make sure you understand how the ETF is structured.
  • Market Risk: Like any other asset class, the value of gold ETFs is subject to market risks. Gold prices can be volatile due to factors like changes in interest rates, geopolitical instability, or currency fluctuations. Gold ETFs are not immune to these risks.

Conclusion

Gold ETFs can be a convenient and cost-effective way to gain exposure to gold. However, like any investment, it’s important to understand the potential risks, such as market volatility, liquidity, and tracking errors.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.