The best ways to invest in gold In India, and which one of them is the best? For ages, the conventional and the only best way to invest in gold was to buy physical gold, in the form of coins, bullions, or jewelry. But with time, more evolved forms of investment emerged like Gold ETFs (exchange-traded funds) and Gold Mutual Funds. Gold ETFs are like buying proportionate ownership in gold without having to carry or store the actual physical gold.
Gold
It is simply making a direct investment in physical gold.
There's no need for a Demat account to invest in Gold.
Change in the price of gold directly affect the prices of Gold ETFs.
There's no investment charge involved but if the gold is bought as jewelry or bullion, the buyer has to bear the making charges.
Gold ETFs (Gold Exchange Traded Funds) Online
It is somewhat similar to making a direct investment in gold, but here the investor buys proportionate ownership in the collective vault instead of buying the physical gold
The investor needs to have a Demat account
Change in the price of gold directly affect the prices of Gold ETFs
The investment in Gold involves the asset management and brokerage charges, so the returns are lesser than the actual increased value of the gold
ETFs ease out the whole affair of trading gold as the buyer doesn't need to carry or store any physical gold
Paperwork is involved in trading Gold ETFs
Gold Mutual Funds
The investment is made not in gold but in the companies involved in mining the gold
There's no need for a Demat account to invest
Change in the price of gold does not affect Gold MFs directly
There's a charge involved in the management of the funds. Plus, there are entry and exit charges that make the overall returns smaller than the actual increased value of gold
There's no risk of theft/burglary involved in Gold MFs as the buyer doesn't need to carry or store any physical gold
Paperwork is involved in trading Gold MFs
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