Gold funds vs ETF: Ever since the decline in the stock market has started, investors have been looking for a way to make safe investments. Although gold is considered the safest investment, a large amount is required to invest in it.
For this reason, keeping small investors in mind, the government has provided the facility to invest through gold funds and gold ETFs. This investment is indirectly made in gold and the returns on it are also similar. Today we have brought for you information about which is better for investment in Gold Fund and Gold ETF.
What is Gold Fund?
Investment in Gold Fund is done like investment in mutual fund, monthly SIP and lump sum investment is done in it. You can encash the gold fund anytime and you can start with an investment of at least Rs 1000.
What are Gold ETFs?
Gold ETFs are such exchange traded funds, in which stocks of companies are bought in the same way as in the stock market. That is how investment is made. To invest in Gold ETFs a demat account is required. You can cash it only according to the timing of the share market.
What are the benefits of investing in Gold Funds and Gold ETFs?
If we look at the returns of gold funds and gold ETFs in the last one year, SBI Gold Fund has given a return of 100 percent, along with this, ICICI Pru Regular Gold Savings Fund has given a return of 21.65 percent. On the other hand, Gold ETF has given an average return of 21.94 percent. In the last one year, both types of gold based mutual fund categories have given similar average returns.
Experts recommend that gold funds are suitable for investors who are systematic and looking for long-term flexibility, while gold ETFs are ideal for investors who have demat accounts or want to convert physical gold.