NRI and Gold Investments: A must have asset
Hello readers! I hope you are doing well. We at RemitAnalyst have decided to come up with 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: be it for education, business or a dream job. This is another blog from the series. Here, we talk about how an NRI can invest in Gold as an Asset.
Let’s understand how much of the money under remittance is actually going into Gold as an asset.
We see, we don’t have actual % of it. Even if some part of above % is going into Gold investments indirectly in later stage depending on how money is being actually used. Let’s understand how an NRI resident can invest in Gold as an asset.
Everyone’s favorite metal is Gold. We Indians just adore it and that’s why we love to hold on to it like a privileged asset since ages. Gold is one such asset which never depreciates with time. NRI investors should consider buying Gold in digital formats via below means.
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 is the only asset after Land which still holds its value, beats the inflation with respect to time and grows exponentially in its worth when you look at it with broad time horizon.
Below is list of active Gold ETF traded on NSE:
|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|
|IDBI AMC||IDBI Gold ETF||IDBIGOLD||Gold||Nov-11|
|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|
Gold Mutual Funds
Gold funds are mutual funds which 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 of equity mutual funds.
Calculation of capital gains for NRIs
1. In 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 case of debt funds, the STCG (up to 3 years) will be taxed at the peak rate of tax applicable to the NRI. In case of LTCG on debt funds, the taxation will be at 20.6% after considering the benefit of indexation.
To help you with any queries on Mutual Fund Investments we have NISM certified Mutual Fund advisor for your help. Please find below details:
Name: Varsha Kendre, ARN: ARN-168529
Contact: +91 98902-80254
If the Indian passport holder stays for more than 6 months outside India and he can bring physical Gold. Subject to import duty as per below scenarios:
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
Thanks for your time and reading this. Feedback is always welcomed.