Best Form of Gold to Buy :Today on 10th May 2024 Akshaya Tritiya (Akshaya Trititya 2024) Is. There is a stir in the bullion market today. On Akshaya Tritiya, people like to invest in gold or silver. Anyway, gold has now become a reliable option to get returns. This can be gauged from the fact that from Akshaya Tritiya 15 years ago till now, gold has given an annual return of 10 percent. During this period, gold increased from around Rs 17000 per 10 grams to around Rs 72000 per 10 grams. Currently, the options for investing in gold have also increased during this period. Decide how you would like to invest after considering the benefits of each option. For example, tax, storage cost, security.
Many investment options
Physical Gold
Digital Gold
Sovereign Gold Bonds
Gold ETF
Gold Mutual Funds
Investment advice in Gold ETF
Brokerage house Zerodha has advised to invest in Gold ETF. Zerodha Fund House says that investment in it has increased rapidly only in the period from 2019 to 2023. Due to which there was a huge increase in AUM also. Investment in Gold ETF was recorded at Rs 5527.86 crore in December 2019. Just one year later, in December 2020, there was a 150 percent jump in investment and it reached Rs 13,819.39 crore. Since then, investment in it has been continuously increasing. The AUM of Gold ETF increased to Rs 25,959.02 crore by December 2023.
What is Gold ETF?
Gold ETFs are simply units representing physical gold which can be purchased in demat form. When you invest in a gold ETF, you don’t actually own physical gold, rather you hold the cash equivalent of the price of gold. Similarly, when you sell a gold ETF, you do not get physical gold, but cash equal to the price of gold at that time. This is an open ended mutual fund, which is based on the rising and falling prices of gold.
How much return do you get?
Like index funds, ETFs usually track a specific market index. Their performance is similar to that index. That is, the return and risk in this depend on the fluctuations in indices like Sensex, Nifty or asset classes like Gold. The price of ETF is known in real time i.e. at the time of transaction.
How to Buy and Sell Gold ETFs?
You can buy and sell at least one unit of Gold ETF on BSE or NSE using a Demat account. For investors who do not have a demat account, they have the option to invest in gold ETFs using gold fund of funds. Gold fund of funds invests in gold ETFs. Through such offers, investors can choose to invest in gold through SIP or lump sum.
Benefits of investing in Gold ETF
The first advantage is that by investing in Gold ETF you neither have to face the problem of storage nor worry about theft. Since gold ETF units are in demat form, there is no need for a locker to keep your holdings safe. This way, you can save on locker charges too.
Gold ETFs are regulated entities, so investors do not need to worry about the purity of their holdings. You can rest assured that the purity level will always be 99.5 percent or more. There is no premium, making charge or any other cost involved when purchasing gold ETF units.
Gold: How much return will you get?
Brokerage house Motilal Oswal Financial Services Limited has kept the target price for gold at Rs 75,000 per 10 grams, while for silver it has been kept at Rs 1,00,000 per kg. Since last year’s Akshaya Tritiya, gold has seen an increase of 13 percent and silver has seen an increase of 11 percent. It is advised to buy on decline with a target of $ 2450 for gold and $ 34 for silver on Comex.
