Gold is the best investment method. All of us buy and use gold. Buying gold jewelry is not an intelligent financial investment. Now the time changed. Young brains think about investing money in gold. Best method to invest in gold. Gold as an investment policy is highly lucrative. Making charge, GST, and concerns about the purity of gold are some of the issues while buying gold.
5 Best method to invest in gold
All you need to know about the best methods to invest your money. Gold is a wise option when it does in a correct manner. Here, we are going to explain 5 different methods to invest in gold. The best method to invest in gold. Let’s, compare all the aspects of these methods.
In times of economic downturn or geopolitical uncertainty, it can protect your wealth
Since it tends to retain its value or increase in value when other assets decline, it is a hedge against inflation and currency devaluations
Due to its low or negative correlation with other assets, it can reduce the overall risk of your portfolio.
PHYSICAL GOLD
Buying gold coins or biscuits from a jewelry shops.
- GST- 3% of investing money.
- Storage, Making & Delivery- storing and security related issues exist. Need to pay charges to keep in the bank locker.
- Expense Ratio- Nil
- Exit Load- Nil
- Brokerage, STT & other charges- Nil
- Return in 5 Years- 40%
- Effective Return- 37%
DIGITAL GOLD
Organizations in INDIA controlling digital gold are, MMTC-PAMP, safegold, and augmond. They offer gold nearly 99.9 percent pure. Also, they keep gold in secure waltz.
- GST- 3% of investing money.
- Storage, Making & Delivery- we don’t want to take a risk on safety. Charges required only when we take delivery. Pay delivery and making charge if required.
- Expense Ratio- Nil
- Exit Load- Nil
- Brokerage, STT & other charges- Nil
- Return in 5 Years- 40%
- Effective Return- 37%
GOLD ETF
ETF is Exchange Traded Funds. Asset management companies run ETF most of the time. People invest money in it and the fund managers use it in various forms. Like in physical gold, gold mining companies, and a little amount in government bonds.
- GST- Nil
- Storage, Making & Delivery- Nil
- Expense Ratio- 5 to 1 percentage
- Exit Load- Nil
- Brokerage, STT & other charges- You need a Demat account. Use discount brokers like XERODA, UPSTOX, etc.
- Return in 5 Years- 40%
- Effective Return- 35%
GOLD MUTUAL FUND
Fund manager of mutual fund invests money in Gold ETF. It not that much lucrative option.
- GST- Nil
- Storage, Making & Delivery- Nil
- Expense Ratio- 5 to 1.5 percentage and ETF charges
- Exit Load- 1 to 2 percentage ( when withdrawing money before 1 year)
- Brokerage, STT & other charges- Nil
- Return in 5 Years- 40%
- Effective Return- 30%
It is issued by the Reserve Bank of India. An extra 2.5% interest return on the invested amount.
- GST- 3% of investing money.
- Storage, Making & Delivery- Don’t want to take a risk on safety. Charges required only when we take delivery. Pay delivery and making charge if required.
- Expense Ratio- Nil
- Exit Load- Nil
- Brokerage, STT & other charges- You need a Demat account. Use discount brokers like XERODA, UPSTOX, etc.
- Return in 5 Years- 40% plus 2.5% interest every year.
- Effective Return- 52.50%
EFFECTIVE RETURNS
The investment of money in gold is completely dependent on the rate of gold. It varies frequently. Ups and downs will occur. By comparing the different aspects of these three methods, we can reach a good decision. While investing money you have to check the return. Here, investing in SOVEREIGN GOLD BONG gives the highest return. in this article we are discussed about the Best method to invest in gold