The government has closed the Sovereign Gold Bond Scheme (SGB). Due to the rise in gold prices in the last few years, it became difficult for the government to continue this scheme. The price of gold in the global market has crossed 2,800 per ounce. Recently it reached $ 2,830. In India too, the price of gold reached Rs 84,900 per 10 grams. The reason for this is said to be the tariff policy of US President Donald Trump. Commodity experts say that gold is expected to continue in the global economy.
Sovereign Gold Bond ,SGB ) After the scheme is closed, now Gold ETF for investment in gold (Gold ETF) And gold mutual funds (Gold Mutual Fund) The option of the option is left. Both of these can be invested in the secondary market. You can easily sell investment if needed. It is easier to invest in both these options compared to investing in physical gold, as you do not need to worry about the purity of gold.
Gold ETF tracks the prices of physical gold. This means that gold ETF prices fluctuate according to the fluctuations in gold prices. The value of Gold ETF is based on the price of gold. The reason for this is that Gold ETF invests its money in physical gold. The value of a unit of gold ETF is equal to one gram of gold.
Gold ETF stocks are listed in markets. Therefore, it is safe to invest in them. Liquidity is also good in them. A demat account is necessary to invest in Gold ETF. Apart from this, investing in gold ETF takes entry load. Exit load seems to be sold.
Gold mutual funds are open-ended funds, which invest in Gold ETF units. Each gold is a fund manager of mutual funds, which takes decisions related to investment. The gold mutual scheme has a net asset value (NAV) of units. Since, the fund manager manage the assets of the Gold Mutual Fund, which may lead to more than the return of gold in the long term. The expansion ratio of the Gold Mutual Fund is slightly higher than the Gold ETF.
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Gold mutual funds can be invested with less money than gold ETFs. It is easy for retail investors to invest in it. Demat account is also not necessary to invest in gold mutual funds. According to Value Research, one year returns of gold mutual funds are 29.45 per cent.