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Investment in Gold: Physical VS Exchange Traded Funds (ETFs)

Many investors try to invest in this yellow metal but they have one doubt in their minds whether to buy Physical Gold or invest in Exchange Traded Funds. If you are new to this and where you are not able to differentiate investment pattern then you should go with ETFs and secure the market risk. Gold ETF, or Exchange Traded Fund, is a commodity-based Mutual Fund that invests in assets like gold. These exchange-traded funds perform like individual stocks. For example, if you wish to invest about a lakh rupees in Gold, then my advice would be that you invest 30% of that amount in buying physical gold for the purpose of Liquidity and rest of the amount you can invest in ETFs and get the benefit of Government scheme. So if you are a fresh investor in Gold, then follow these rules for your bright future and best of returns on the investment.

Author:
Dharmendra Khairajani, Assistant Professor, Unitedworld School of Business (UWSB)

Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.

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