Gold ETFs and gold funds are great investment options for those who want to hedge against inflation as well diversify their investment portfolios. 
Gold ETFs: These are funds that invest in gold with 99.5% purity (bought from RBI-approved banks). ETFs are managed by fund managers who track daily gold prices and trade physical gold to make profits. Gold ETF units are traded on stock exchanges and offer high liquidity for buyers and sellers. Retail investors, such as you and me, need to have a demat account to buy and sell gold ETFs. 
Gold ETFs to invest in:
- SBI Gold ETF
- Axis Gold ETF
- Birla Sun Life Gold ETF
- Kotak Gold ETF
- Goldman Sachs Gold ETF
- Quantum Gold Fund
- Religare Invesco Gold ETF
- IDBI Gold ETF
- ICICI Prudential Gold ETF
- UTI Gold ETF
- HDFC Gold ETF
Gold funds: Gold funds are mutual funds that mainly invest in gold ETFs, gold bullion or gold-producing companies. You don’t need a demat account to invest in a gold fund.
Gold funds to invest in:
- Invesco India Fold Fund
- IDBI Gold Fund
- Kotak Gold Fund
- Quantum Gold Saving Fund
- ICICI Pru Regular Gold Savings Fund
- Canara Robeco Gold Savings Fund
- Axis Gold Fund
- Birla Sun Life Gold Fund
- HDFC Gold Fund