Akshaya Tritiya 2021: There are many options to buy gold online. These include gold exchange-traded funds (ETFs), gold mutual funds (gold mutual funds), sovereign gold bonds (SGB) and physical gold.
Akshaya Tritiya 2021: Akshaya Tritiya (Akshaya Tritiya) is on May 14, 2021 this time. Buying gold on this occasion is considered auspicious. Due to the second wave of Corona, there is a lockdown in most of the states of the country. Because of this, everyone is locked in their homes. You cannot buy gold by going to markets and shops outside. However, if you want, you can buy gold online from home.
There are many options to buy gold online. These include gold exchange-traded funds (ETFs), gold mutual funds (gold mutual funds), sovereign gold bonds (SGB) and physical gold. Gold ETFs and gold mutual funds are quite similar but there are some differences. Investment in gold through Sovereign Gold Bonds matures after 8 years. In such a situation, you can look at investment options in Gold ETFs and Gold Mutual Funds to see which of these options is better and why?
Where to invest
Gold ETFs are passive investment instruments that aim to track the price of domestic gold. A gold ETF unit is equivalent to 1 gram of gold and its purity is 99.5 percent. Gold ETFs invest in shares of physical gold or gold mining / refining companies.
Gold mutual funds, on the other hand, operate on a fund of fund structure that invests primarily in gold ETFs as an underline asset. Thus, a portfolio of that ETF becomes an underling asset for the scheme.
Gold ETF vs Gold Mutual Fund
>> It is easier to invest in Gold Mutual Funds than Gold ETFs. You can invest in gold mutual funds directly through online mode or distributors. On the other hand, to invest in Gold ETF, you must have a Demat Account.
>> Gold mutual funds allow investors to invest through SIP, but this feature is not available with Gold ETFs.
>> In gold mutual funds you can buy gold in installments and its value is displayed in the NAV. You can start with 500 rupees in it. Whereas gold ETFs generally allow a minimum investment of 1 gram of gold.
If you are looking for regular investment in gold for less money, then a gold fund is a better and better option, which includes additional costs. At the same time, if you are looking for a cost effective option to invest in precious metals, then gold ETFs are considered the right option.
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