Today there are a variety of ways you can invest in gold. Of course, you can buy solid gold coins or jewellery, something Indians have been doing for ages. There is also the facility to buy gold bonds issued by the RBI and guaranteed by the government of India. These bonds not only appreciate with the price of gold but also pay a nominal rate of interest of 2.75%. In between, you can also buy gold futures on the commodity exchange and e-gold but that is more for aggressive traders in gold. Finally, there are the gold Exchange Traded Funds (ETFs) that hold gold with a gold custodian bank and issue units against that. As an investor in gold ETF issued by a registered mutual fund in India, you can rest assured that all your units are backed by physical gold. Investing in gold ETFs has picked up among retail investors and HNIs in the last few years. Here are 10 things you need to know about investing in gold funds…
Today there are a variety of ways you can invest in gold. Of course, you can buy solid gold coins or jewellery, something Indians have been doing for ages. There is also the facility to buy gold bonds issued by the RBI and guaranteed by the government of India. These bonds not only appreciate with the price of gold but also pay a nominal rate of interest of 2.75%. In between, you can also buy gold futures on the commodity exchange and e-gold but that is more for aggressive traders in gold. Finally, there are the gold Exchange Traded Funds (ETFs) that hold gold with a gold custodian bank and issue units against that. As an investor in gold ETF issued by a registered mutual fund in India, you can rest assured that all your units are backed by physical gold. Investing in gold ETFs has picked up among retail investors and HNIs in the last few years. Here are 10 things you need to know about investing in gold funds…