Dhanteras 2025: Buying gold jewelery has been a tradition in Indian families. This has been seen as a provision for difficult times. However, with time, new ways of investing in gold have also emerged which have provided the option of not only physical gold i.e. jewellery, but also gold bars or gold coins as well as paper gold such as Gold ETF or Gold ETF Fund of Funds (Gold ETF FoF). Since there are security concerns in physical gold and in case of jewellery, there are extra expenses like making charges and locker charges etc.
Purchasing gold digitally eliminates worries related to purity, making charges or storage. In such a situation, paper gold is becoming increasingly popular. Here, Prashant Pimple, Chief Investment Officer (Fixed Income), Barodi BNP Paribas Mutual Fund, is telling about the modern method of gold so that one can take appropriate decisions related to investment this Dhanteras.
What are Gold ETFs and Fund of Funds?
First of all, if we talk about gold ETFs, they are traded on stock exchanges and go up and down according to the prices of gold. To transact units of Gold ETF, a trading account is required and to hold its units, a demat account is required. Talking about Gold ETF Fund of Funds, through this also investors can include gold in their portfolio and it is for such retail investors who do not have demat and trading account. This is a mutual fund scheme in which you can invest through SIP or STP. Note that lump sum money has to be deposited in STP.
Equity or Gold: How bright is investing in gold?
Another option for building capital is investing in the stock market. However, in the current ups and downs of the market, gold has once again shined and according to Prashant, it helps in managing the portfolio during such ups and downs and is also capable of fighting rising inflation. He says that most of the times there have been times when gold has given stronger returns than the stock market. Over the last 10 years, it has delivered returns of 15% compound annual growth rate (CAGR), better than many asset classes. It has kept the portfolio intact even amidst turmoil like the global economic crisis, Corona epidemic or geopolitical tension and has now offered an attractive alternative to equities.
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