There are various avenues to invest in Gold like ETFs, Gold MFs, Bullion etc, but the best avenue for you to invest in gold would be in Sovereign Gold Bonds (SGB).
Advantages of investing in SGBs:
- You earn an interest 2.50% on the capital invested and capital gains when you redeem if the price is higher
- You can use these bonds as collateral for loans
- Secure, since the bonds are held in demat form
- No management fee and expense ratios. In the case of gold ETFs, you pay nearly 1% expense ratio.
Returns of various gold instruments under different scenarios.
Source: ET
If you are a Zerodha user Click here to invest in invest in Sovereign Gold Bonds.
Why buy gold on Akshaya Tritiya.
Akshaya Tritiya is an auspicious time to buy gold and other precious metals. It is believed that investments on this day are lucky and can bring one wealth and prosperity.