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Tuesday, January 25, 2022

Sovereign Gold Bond or Gold ETF What is better for investing and in which you will get more returns, know details

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To manage money in difficult circumstances, buying gold and investing in it is considered beneficial. Nowadays options like sovereign gold bonds and gold ETFs exist, where investing can give good returns.

Gold investment

Gold is one of the favorite investment options of the people right from the beginning. It serves as a hedge against inflation, so there is always a demand for it. Even in the Corona crisis, people are increasingly investing in gold. These days there are many options in this. In which Sovereign Gold Bond and Gold ETF are quite popular. Both get good returns, but to know which scheme is more beneficial, these things can be compared.

Gold ETF is beneficial in the short term

If you want to invest in gold for a short period, ie, short-term, then gold ETF is a better option for you. In this, the investor is allowed to withdraw money at his own will. You can buy and sell it on your own free will.

Purchasing charge is low

Gold ETFs have lower purchasing charges compared to physical gold ie gold jewelery. Apart from this, 100 percent purity is guaranteed in it. There is also an option to invest through SIP. Gold ETFs can also be used as security for taking loans.

Sovereign gold bond is effective in long term

According to tax and investment experts, sovereign gold bonds are better for medium and long-term investors. However, there is a lock-in period of 8 years, that is, before this, you cannot withdraw money from it. But after lock-in period, there is 2.5 assured returns along with income tax exemption on maturity.

Can shop with 1 gram

Sovereign Gold Bonds can also be purchased for Rupees and will be valued in different grams of gold. The minimum investment in the bond will be made from 1 gram whereas the upper limit of investment for a person has been fixed (cap) at 4 kg. This scheme was started by the Government of India.

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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