If you want to invest in gold without buying physical jewellery or storing gold coins, Gold BeES can be a smart alternative. It offers a convenient, demat-based way to invest in gold digitally.

In this guide, let’s understand how to invest in Gold BeES, how it works, taxation, benefits, and risks.

What is Gold BeES?

Gold BeES (Gold Benchmark Exchange Traded Scheme) is a gold ETF launched by Nippon India Mutual Fund.

It tracks the domestic price of physical gold and is listed on stock exchanges like NSE and BSE.

Each unit of Gold BeES represents approximately 1 gram of gold (subject to structure). The ETF invests in physical gold of high purity (99.5% or higher).

How Does Gold BeES Work?

Gold BeES works like a stock:

1. It tracks gold prices in India.
2. The fund holds physical gold in secure vaults.
3. Units are traded on NSE and BSE.
4. Investors buy and sell units via demat account.
5. Price fluctuates based on gold market rates.

When gold prices rise, Gold BeES value increases. When gold prices fall, ETF price declines.

How to Invest in Gold BeES? (Step-by-Step Process)

Step 1: Open a Demat & Trading Account

You need an active demat and trading account with JM Financial Services.

Step 2: Search for Gold BeES on Exchange

Look for the ticker symbol “GOLDBEES” on NSE.

Step 3: Place Buy Order

Buy units during market hours just like shares.

Step 4: Units Credited to Demat

Units are credited to your demat account after settlement.

That’s it — no locker, no making charges, no purity concerns.

Minimum Investment in Gold BeES

You can buy even 1 unit of Gold BeES.
Minimum investment = price of 1 unit (usually close to 1 gram gold value).

This makes it affordable for small investors.

Gold BeES vs Physical Gold

Parameter	Gold BeES	Physical Gold
Storage Risk	No	Yes
Making Charges	No	Yes
Liquidity	High	Moderate
Purity Risk	No	Yes
Demat Required	Yes	No

Taxation of Gold BeES

Gold ETFs are taxed like non-equity mutual funds:

• Short-term capital gains (holding < 3 years): As per income slab
• Long-term capital gains (holding > 3 years): 20% with indexation (as per prevailing tax rules)

Always check latest tax provisions before investing.

Advantages of Gold BeES

• No storage cost

• No making charges
• High liquidity
• Transparent pricing
• Easy buy and sell on stock exchange
• Hedge against inflation
• Portfolio diversification tool
• No risk of theft
• Backed by physical gold
• Suitable for SIP-like staggered buying

Risks Associated with Gold BeES

• Gold price volatility

• No regular income generation
• Tracking error risk
• Expense ratio impact
• Currency fluctuation impact
• Market liquidity risk during extreme volatility
• Not ideal for short-term trading

Who Should Invest in Gold BeES?

Gold BeES may suit investors who:

• Want digital gold investment
• Prefer safe-haven assets
• Want inflation hedge
• Seek portfolio diversification
• Do not want physical gold storage

FAQs

1️. Is Gold BeES a safe investment?

Gold BeES is backed by physical gold and regulated by SEBI. However, it carries gold price risk and market volatility risk.

2️. Can I invest in Gold BeES through SIP?

Gold BeES itself does not offer SIP directly, but you can manually invest monthly through your trading account.

3️. Is Gold BeES better than buying gold jewellery?

For investment purposes, Gold BeES is usually better because there are no making charges, storage risks, or purity issues.

4️. Does Gold BeES pay dividend?

No. Gold BeES does not generate dividend income. Returns depend purely on gold price appreciation.

5️. What is the best time to invest in Gold BeES?

Gold BeES can be accumulated during market corrections or used as a hedge during economic uncertainty.