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Below is quote on Why should investors consider investing in Gold ETFs this Diwali? By Chintan Haria, Head - Product Development & Strategy, ICICI Prudential AMC

Buying gold on auspicious occasions is a part of the Indian tradition. Apart from cultural and traditional reasons, gold also has an important role to play in one’s portfolio as that of a diversifier and a hedge against inflation and volatility in other asset classes.

Investors who are considering purchasing gold for investment purposes this Diwali can consider Gold ETFs. Investing in Gold ETF is as good as investing in physical gold.  Since Gold ETF is held in Demat, an investor need not worry about storage and safety aspects. Those without a Demat can invest in the Gold Fund of Fund. In terms of purity, Gold ETF purchases gold of 99.5% purity or higher. Moreover, they can be purchased or sold on the exchanges anytime during the trading hours just like equities. Investors can transact for as low as one unit of gold.

From an allocation perspective, investors can consider a 5-10% allocation to gold through Gold ETF or Gold FoF in their portfolio.

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