InvestorQ : What is meant by Fractional Gold Accumulation Scheme and how does it work?
NISHA Nayak made post

What is meant by Fractional Gold Accumulation Scheme and how does it work?

Answer
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1 year ago


This is a recently launched product that can buy gold in fractions of as low as 0.10 grams. It is a great product to those who are looking to accumulate gold in a systematic manner. All the gold units that are issue will be standard 24-carat gold with 999.9 purity. This gold is held in non-physical form and can be redeemed either in cash or in actual gold bars. All the gold that is issued is actually backed by physical gold that is stored in separate vaults by MMTC and insured at its cost. The beauty of this method of buying gold is that you can buy fractional gold and even through your Paytm account. It is that simple. Of course, physical gold will continue to be in demand for obvious reasons. However, for the discerning investor, non-physical gold is emerging as a viable alternative. If you can embrace demat in equities and debt, then why not in Gold? Digital gold in most cases is very safe when it is backed by an institution of repute.