Physical gold vs gold ETFs vs SGB: Your investment options for Akshaya Tritiya

1) physical gold

physical gold The most popular way is to own gold, either in the form of jewelry or gold coins.

2) Digital gold

Digital gold is a way of investing in physical gold. It is just like regular gold, it can be bought online, and kept in an insured vault by the seller on behalf of the customer. The lowest price you can buy or sell 24 Karat Hallmarked Gold is 1.

“Digital gold is available in India from MMTC-PAMP, Augmont, and SafeGold. Additionally, you can buy it from online retailers including brokerage firms, financial institutions, and mobile e-wallets. Digital gold is 100% pure, secure form is stored from, and is fully guaranteed, and the return on this investment is determined by the market price of the physical gold, said Vineet Khandare, CEO and founder of MyFundBazaar.

3) Gold ETF

Gold ETFs are mutual funds that follow the movement of domestic gold prices. The fund management company buys gold bullion using your investment. Due to their listing and trading on stock exchanges, Gold ETFs are safe investments that are governed by stringent regulations. The minimum investment required is one unit of Gold ETF, equal to the price of one gram of physical gold. Since they are listed, gold ETFs are easy to trade on the stock market and have excellent liquidity.

“This Third day of AkshayaConsider investing in the yellow metal through Gold ETFs. An investor can start investing with as little as 53 (a unit of ICICI Prudential Gold ETF). Investing in gold ETFs will not only diversify your portfolio but also provide easy liquidity, an aspect that physical gold does not offer, said Chintan Haria, Head of Investment Strategy, ICICI Prudential AMC.

Benefits of Investing in Gold ETFs

Facility to buy and sell gold ETF units like equity shares through trading account

-It is safe from theft as it is deposited in the demat account

-One need not worry about the purity aspect as the investment is backed only by gold bullion of 99% purity or above.

Overall, investing in gold ETFs can add shine to your portfolio, according to Chintan Haria. An investor can consider allocating up to 10% of the portfolio to Gold ETFs.”

Gold Mutual Fund

Gold Mutual Fund There are commodity mutual funds that invest directly or indirectly in gold. Investors can invest in gold through Exchange Traded Funds (ETFs).

Vineet Khandare said that gold mutual funds, which do not directly invest in physical gold, use gold ETFs as an intermediary. Due to the fact that the underlying asset is stored in the form of physical gold, changes in the price of gold have an immediate effect on its value. It works like any other mutual fund.

sovereign gold bond

sovereign gold bond (SGB) is the right choice for investing in physical gold. With these bonds, you can enjoy capital growth and also earn interest every year.

“Sovereign gold bonds avoid the cost and risk of storage, making them a safer option than physical gold. The RBI issues these securities on behalf of the government; their value is based on the weight of the gold 2.5% p.a. guaranteed interest rates are provided by SGB,” said Vineet Khandare.