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How To Invest In Gold With Minimum Investment?

The precious yellow metal, Gold, has been one of the favourites for Indian Families. Traditionally, Indians love to accumulate gold as it symbolizes cultural values and prosperity. It also establishes itself as a safe haven during economic instability.
Gold has never been seen as a proper investment because once physical gold is bought, it’s not sold.

As youngsters explore more investment avenues, gold looks attractive. But buying gold directly in physical forms attract many costs, for eg. making charges.

So, if you want to start investing in gold without actually buying gold, here are 4 ways where you can do it.

1) Gold ETFs

Gold ETFs are Exchange Traded Funds where the underlying asset is gold. Like any other ETFs, Gold ETFs are also traded on stock exchanges. The price of these ETFs are determined by the price of gold, so the real time price change of gold directly reflects in the price change of gold ETFs. Since, gold etfs are fully backed by physical gold and also regulated by stock exchange, Gold ETFs are competely secured.

Company NameLast Price*Market Cap
(Rs. cr)
SBI Gold ETF4,219.59322.41
Birla Gold ETF4,308.3098.22
Invesco G-ETF4,250.0048.57
Kotak MF-GETF41316.49
HDFC Gold ETF42.146.49
UTI – Gold42.45.89
Nippon ETF Gold41.134.22
Axis Gold ETF41.013.15
IPRU Gold ETF42.031.97
Prices of Gold ETF as on 20th April 2021

2) Digital Gold

You can buy and invest in digital gold via payment apps. Many e-wallet/UPI apps such as Paytm, Google Pay and PhonePe. These apps act as an intermediary between you and companies that offer digital gold. When you buy digital gold, the company buys gold on your behalf and stores it in physical lockers. Currently, three companies offer digital gold: 1) Augmont Gold Ltd. 2) MMTC-PAMP India Pvt. Ltd. 3) Digital Gold India Pvt/ Ltd. You can start investing in digital gold from Rs 100. Once you buy digital gold, you will be receiving a transaction receipt of confirmation.
You also have the option to convert your digital gold into gold coins or gold bullions.

3) Sovereign Gold Bond

Sovereign Gold Bond schemes are bonds offered by Government of India that are backed by gold and guaranteed by Government of India. These bonds offer gold’s market returns plus fixed returns per year on the invested amount.

4) Gold Mutual Funds

There are open-ended funds that invest in gold exchange-traded funds (ETFs). The benefit is that you can take advantage of gold price volatility and experienced fund managers to profit. Expert fund managers will closely monitor gold ETF price volatility and make decisions in order to maximize returns for their investors.

With these options to invest in gold, anyone can start investing without actually buying and storing gold. Gold ETFs, Gold Mutual Funds and Sovereign Gold Bonds are stored Demat Account whereas Digital Gold is stored in Digital Lockers that can be accessed via apps which were used to buy them.

Thank You for reading.

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