Best Ways to Invest in Gold

Best Ways to Invest in Gold

Gold has always held a special place in Indian households—symbolizing wealth, security, and emotional value. While physical gold dominated for decades, modern investors today prefer digital and more efficient ways to invest in gold.

Wealth-tech platforms like FundsApp have made gold investments simpler, safer, and more transparent than ever before. Whether someone wants long-term wealth creation or short-term diversification, digital gold products offer a smarter alternative to traditional jewellery purchases.

1. Gold Mutual Funds (Gold MFs)

   Gold Mutual Funds invest in international gold ETFs on behalf of investors.

   Ideal for investors looking for:

   • Long-term exposure
   • Low-ticket monthly SIPs
   • Highly liquid and regulated products

2. Gold ETFs (Exchange Traded Funds)

   Gold ETFs are digital forms of gold traded on stock exchanges.

   Benefits:

   • Low expense ratio
   • Prices directly linked to market gold rates
   • Safe custody with SEBI-regulated vaults
   • High transparency

3. Sovereign Gold Bonds (SGBs)

   One of the most attractive gold investment options today.

   Why SGBs are popular:

   • 2.5% guaranteed annual interest
   • No capital gains tax if held till maturity (8 years)
   • Safe and government-backed
   • Better long-term returns than physical gold

4. Digital Gold

   Digital gold allows users to buy small quantities of gold online.

   Advantages:

   • Start with as low as ₹100
   • 24/7 purchase availability
   • Backed by actual physical gold
   • Option to convert into coins or bars

5. Physical Gold (Jewellery, Coins, Bars)

   Still popular, but not the most efficient investment option.

   Limitations:

   • High making charges
   • Storage and safety risks
   • No interest or passive income
   • Lower purity in some cases

6. Gold Savings via SIPs (Digital SIP in Gold Funds)

   Platforms like AssetPlus allow investors to start SIPs in Gold Mutual Funds.

   Why it works:

   • Spreads purchases across time
   • Benefits from price averaging
   • Encourages disciplined investing
   • Ideal for long-term goals such as weddings or wealth creation