NRI and Gold Investments: A must have asset

Updated on: 2023-06-01 - 4 mins read

Hello readers! I hope you are doing well. We at RemitAnalyst decided to develop a blog series to educate our readers about Remittance and its importance in every Indian household where at least a single person is living abroad, whether for education, business, or a dream job. It is another blog from the series. We talk about how an NRI can invest in Gold as Asset.

Let's understand how much of the money under Remittance goes into Gold as an asset.

  • More than half of remittances received by Indian residents were used for family maintenance, i.e., consumption (59.2 percent), followed by deposits in banks (20 percent) and investments in landed property and shares (8.3 percent)

We see we don't have the actual % of it. Even if some of the above % is going into Gold investments indirectly in a later stage, depending on how money is being used, let's understand how an NRI resident can invest in Gold as an asset.

Everyone's favorite metal is Gold. We Indians adore it, and that's why we love to hold it like a privileged asset for ages. Gold is one such asset that never depreciates with time. NRI investors should consider buying Gold in digital formats via the below means.

1. Gold ETF


Gold Exchange Traded Funds (ETFs) are simple investment products that combine the flexibility of stock investment and the simplicity of gold investments.

ETFs trade on the cash market of the National Stock Exchange, like any other company stock, and can be bought and sold continuously at market prices.

  • Gold ETFs are passive investment instruments that are based on gold prices and invest in gold bullion.
  • There is complete transparency on the holdings of an ETF.
  • Due to their unique structure and creation mechanism, ETFs have much lower expenses than physical gold investments.

Gold is the only asset after Land, which still holds its value, beats inflation concerning time, and grows exponentially in its worth when you look at it with a broad time horizon.

Below is list of active Gold ETF traded on NSE

AMC Scheme ScriptName Type Launch Year
Axis Mutual Fund Axis Gold ETF AXISGOLD Gold Nov-10
Birla Sun Life Mutual Fund Birla Sun Life Gold ETF BSLGOLDETF Gold May-11
Canara Robeco MF Canara Robeco Gold ETF CANGOLD Gold Mar-12
HDFC Mutual Fund HDFC Gold Exchange Traded Fund HDFCMFGETF Gold Aug-10
ICICI Prudential Mutual Fund ICICI Prudential Gold Exchange Traded Fund IPGETF Gold Aug-10
Kotak Mutual Fund Kotak Gold Exchange Traded Fund KOTAKGOLD Gold Jul-07
Quantum Mutual Fund Quantum Gold Fund (an ETF) QGOLDHALF Gold Feb-08
Reliance Mutual Fund Reliance Gold Exchange Traded Fund RELGOLD Gold Nov-07
Religare Mutual Fund Religare Gold Exchange Traded Fund RELIGAREGO Gold Mar-10
SBI Mutual Fund SBI Gold Exchange Traded Scheme SBIGETS Gold Apr-09
UTI Mutual Fund UTI GOLD Exchange Traded Fund GOLDSHARE Gold Mar-07

2. Gold Mutual Funds


Gold funds are mutual funds that invest in various forms of Gold – physical Gold, shares of companies engaged in the business of gold mining, and gold exchange-traded funds (ETFs) These are similar to buying equity mutual funds.

3. Calculation of Capital gains for NRIs

  1. In the case of equity funds, the short-term capital gains (up to 1 year) will be taxed at 15.45% (15% + cess), while LTCG will be taxed at 10% flat above Rs.1 lakh of capital gains in the year.
  2. In the case of debt funds, the STCG (up to 3 years) will be taxed at the peak tax rate applicable to the NRI. In the case of LTCG on debt funds, the taxation will be at 20.6% after considering the indexation benefit.

4. Physical Gold


If The Indian passport holder stays more than six months outside India, he can bring physical Gold. Subject to import duty as per the below scenarios:

  • Male passengers are allowed to bring duty-free Gold worth Rs 50,000 into India.
  • For women, the limit is Rs 1 lakh.
  • You will be subject to duty if you carry Gold over and above these limits.
  • You can import gold bars, coins, and ornaments up to 1 kg during your trip to India, subject to payment of duty.
  • If Gold is available at a low price during your stay, you can buy physical Gold Jewelry and bring it back while returning to India, adhering to import duty rules.

During your stay if Gold is available at low price you can buy physical Gold Jewelry and bring it back with you while returning to India adhering to import duty rules

Note: A non-resident or ordinarily non-resident of India cannot buy a sovereign gold bond.

To help you with any queries on Mutual Fund Investments, we have NISM certified Mutual Fund advisor for your help. Please find below the details

Name : Varsha Kendre, ARN : ARN-168529


Contact : +91-9890280254