As Dhanteras approaches, many investors view gold as a reliable asset. Where digital gold has gained popularity, which is also called paper gold. This is a better option for those people who face problem in keeping their gold safe. Now the question arising here is how many options a person has in paper gold. Is digital gold the only option? So the answer is- no. Apart from digital gold, sovereign gold bonds, gold ETFs and gold mutual funds are also alternatives to paper gold. So let us understand about them one by one.
You can invest in gold ETF
Gold ETFs are funds that invest in physical gold and are traded on stock exchanges like regular shares. To buy gold ETF, you need to have a demat and trading account with a registered stockbroker. Today, popular gold ETFs like Nippon India Gold ETF, HDFC Gold ETF or ICICI Prudential Gold ETF are present in the market. You can invest in someone by doing your own research.
Sovereign gold bond is an option
Sovereign Gold Bond Scheme was started in 2015. Sovereign Gold Bond is issued by RBI on behalf of the government, hence it is government guaranteed. In this, you get guaranteed returns on investment. In this, 2.5 percent interest is available annually on investment. This money is deposited in the bank accounts of investors every 6 months. The first installment of SGB came on November 30, 2015. It matures in November 2023. The 2016-17 series of the SGB scheme was launched in August 2016. This series is going to mature in August 2024. However, there is a lock in period of 8 years i.e. you cannot withdraw money from it before that. But after the lock-in period, you get an assured return of 2.5% along with income tax exemption on maturity.
You can invest money in gold mutual fund
Gold mutual funds primarily invest in gold ETFs and provide an indirect way of investing in gold. You can invest in various gold mutual funds like HDFC Gold Fund or SBI Gold Fund. Never invest without doing your own research. You can invest directly through the mutual fund website or through platforms like Groww or Zerodha.
