Gold Investment Plans in India: Which One is Best for You?

Over the years, gold has been highly regarded as an investment option. Unlike many other assets, gold performs well during economic uncertainties and has remained one of India’s most preferred investment tools. Besides the conventional ways of investing in gold, other gold investment plans are worth exploring. 

This article will provide insights into India’s best gold investment plan and which is best for you.

What Are the Gold Investment Plans in India?

Besides the common ways of purchasing physical gold, there are some newer gold investment plans in India, which include:

1. Digital Gold: These can be purchased from various apps in denominations starting from 1 gram.

2. Gold ETFs: Gold Exchange Traded Funds are traded on stock exchanges like shares and require a demat account for investing.

3. Gold Mutual Funds: These mutual funds invest in the stocks of gold-producing companies, physical gold, and Gold ETFs, operating on a fund-on-fund structure, where the underlying asset is physical gold.

4. Sovereign Gold Bonds: Sovereign gold bonds are government-backed securities introduced by the Central Bank in the country and are traded in gold.

What Are the Minimum Investment Criteria for Investing in Gold?

Here are the minimum investment criteria for some gold options:

1. Physical Gold: ₹6,000-7,000 based on the current gold price.

2. Gold ETF: Depends on the unit ETF price.

3. Sovereign Gold Bonds: ₹6,000-₹7,000 based on the current gold price.

4. Digital Gold: Starts at just ₹1.

5. Gold Mutual Funds: Starts at just ₹1.

What Are the Cost Considerations for Different Gold Investment Options?

Here are the various costs associated with each gold investment option:

1. Physical gold involves making charges (10% of gold value), insurance storage charges (3-4% p.a.) and GST (3% of purchase price).

2. Digital Gold only has GST at 3% of the purchase price and a spread charge (2-6%).

3. Gold ETFs include expense ratio, brokerage and demat account charges.

4. Gold Mutual Funds have a cost of 0.6-1.20% annually, covering 0.5-1% for gold ETF and 0.1-0.2% as fund expense ratio.

Wrapping Up

Depending on your investment outlay, risk tolerance, and return expectations, you can choose the gold investment plan that suits all your requirements. Tata Capital Moneyfy helps you by offering tools to compare investment plans, track performance, and invest in options like gold mutual funds.

Visit the Tata Capital Moneyfy website or download the app for more information.