New Delhi. Gold is considered one of the best options for investment. The importance of gold in India can only be gauged from the fact that a major part of the budget for weddings is spent on gold jewelery and coins etc. India is the second country in the world where gold is consumed the most. Gold is not only a precious metal but also an auspicious metal for the people in India.
1. Sovereign Gold Bond
There can be many investment options in gold like jewellery, gold coins, gold bullions etc. But the best option among all these is considered to be Sovereign Gold Bond. By investing in this government scheme, the risk is very low and you can get the returns without worrying. Sovereign gold bonds are issued by the Reserve Bank, so there is no hassle about its purity. Investing in Sovereign Gold Fund is beneficial. Apart from the price of gold, it also gives a fixed return of 2.5 percent annually.
Also read: Important Information! Government issued rules, all people should do this work before 30th June or else…2. Gold Exchange Traded Funds (Gold ETFs)
The facility to buy gold like shares is called Gold ETF. This is a mutual fund scheme. It is one of the cheapest options for investment in gold. These are exchange traded funds that can be bought and sold on stock exchanges. Since the benchmark of Gold ETF is spot gold prices, you can buy it close to the actual price of gold. You need to have a trading demat account to buy Gold ETFs. In this, the purchase of gold is done in the unit. On selling it, you do not get gold but an amount equal to the market value of that time.
3. Gold Mutual Funds
It is easier to invest in Gold Mutual Funds as compared to Gold ETFs. You can invest in Gold Mutual Funds directly through online mode or through its distributors. On the other hand, you need to have a Demat account to invest in Gold ETFs. In Gold Mutual Fund, AMC invests its corpus in Gold ETFs for returns. In addition, gold mutual funds allow investors to invest through SIP. Gold Mutual Funds are open-ended investment products that invest in Gold Exchange Traded Funds (Gold ETFs) and their Net Asset Value (NAV) is linked to the performance of the ETFs.
Also read: Important Information! Government issued rules, all people should do this work before 30th June or else…
4. You can also buy gold from payment app
You can invest in digital gold right from your smartphone. There is no need to spend a lot of money for this. You can buy gold of any price you want as per your convenience. This facility is available on platforms like Amazon Pay, Google Pay, Paytm, PhonePe and MobiKwik.