If you are planning to invest in digital gold this Diwali, consider gold mutual funds, gold ETFs and gold bonds. With the government planning to discontinue gold bonds, investors may consider investing in gold bonds. gold ETFs and gold mutual funds.

There are 17 gold exchange-traded funds (ETFs) with total assets under management (AUM). ₹39,823 crore, of which ₹Inflows worth ₹1,233 crore were added in September alone.

This is a very modest figure compared to other plans. For example, there are 243 schemas under ‘.index funds‘ category containing total AUMs ₹2.69 lakh crore. Wealth advisors believe the unpopularity of gold ETFs can be attributed in part to the fact that they require investors to own a gold ETF. demat account. There is no such restriction on investing in other investment funds.

Price of 24 carat gold as of October 29, 2024 ₹7.996 per gram and 22 carat gold ₹7,331 per gram. Control This for more details.

(Source: AMFI; Regular refunds as of October 28, 2024)

Similar returns

As we can see in the chart above, almost all gold ETFs delivered almost similar returns last year, namely a return of 27 percent. gold prices Increased by approximately 28 percent since last year diwali. The same level of returns can be seen in these exchange-traded funds (ETFs).

For example, Aditya Birla Sun Life Gold ETF Last year, it provided a return of 27.03 percent, Axis Gold ETF 26.31 percent and DSP Gold ETF 26.90 percent. Other plans refunded similar amounts during this period.

“Buying gold ETFs is better because you don’t have to pay construction costs (around 10 percent) and GST (3 percent). Another advantage of buying digital gold is, ₹1,000, an option not available in hard jewellers,” says Sridharan S., Sebi-registered investment advisor and founder of Wealth Ladder Direct.

It is worth noting that investors can enter the gold wave by investing in digital gold without paying any costs. to accuse or 3 percent GST. On the contrary, when you invest in physical gold, you are expected to incur construction costs and GST. As a result, the potential for higher returns in the case of physical gold versus digital gold decreases.