4 Points
Joined January 2022
One can invest in gold in different ways, for instance, investing through physical gold, Gold ETFs, Gold mutual funds, and sovereign gold bonds. Having said so, experts say, investing in gold ETFs and gold mutual funds is a better way of investing in gold. Even though Gold ETFs and Gold Mutual funds are quite similar, they come with some differences. Gold ETFs invest directly in gold whereas gold mutual funds invest in these gold ETFs and other related assets. Gold ETFs are traded on exchanges and hence offer better liquidity and the right price for both buyers and sellers. Investing in gold mutual funds does not require a Demat account as in the case of gold ETFs but the exit load that investor has to pay in mutual funds is slightly higher than gold ETFs. Hence gold ETFs prove to be a better choice than gold mutual funds. Experts say, for investors looking to make a regular investment instead of a one-shot investment, then the gold fund option is better and rewarding. However, for those looking for a cost-effective option to invest in precious metals, then gold ETF is considered to be the right choice.
https://www.axismf.com/mutual-funds-sip-calculator