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Invest in Gold, Your Way

3 investments options starting from ₹50

By signing up, I agree to the T&C, Privacy Policy and Tariff rates and give my consent to open Demat and Trading account in Arihant Capital.

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Sovereign Gold Bonds

Gold Funds

Gold ETF

Gold ETF

A gold ETF holds assets in a gold bullion but is listed on stock exchanges and traded like a stock. Every unit is backed by one gram of gold of assured purity held in a physical or demat form (digital). It combines the lucrative value of gold with the liquidity of stocks.

Invest from ₹50 onwards

No entry or exit loads

Highly liquid, sell it like a stock

Purity assured

Sovereign Gold Bonds (SGBs)

SGBs are government securities denominated in grams of gold combined with the convenience of bonds. They offer the dual benefit of capital appreciation along with guaranteed interest on your investment as listed securities, they can also be sold on the secondary market.

How it Works?

Apply to an open series - SGBs will be credited to your demat account.

Earn interest while holding - Receive 2.5% interest per annum.

Enjoy tax-free maturity - SGBs mature in 8 years. However, you can redeem them anytime after 5 years.

Details

No Open SGB Issue

Gold Funds

Gold funds are exactly like mutual funds that pool money from investors to buy gold or gold-related assets. They offer exposure to gold prices without the hassle of physically storing the precious metal.

Regulated by SEBI so purity assured

No demat account needed

Highly liquid

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Build Wealth with a Gold SIP

Start your gold SIP via gold ETFs or gold mutual funds with ease and invest with 0% commission.

ETF SIP from ₹15

Invest in Gold ETFs through Equity SIP for your long term financial goals. Choose from daily, weekly, or monthly SIPs and modify or pause your ETF SIP at anytime.

Gold Mutual Fund SIP

Set up a gold mutual fund SIP from as low as ₹500.

Physical Gold vs Digital Gold

Parameters

Physical Gold

Actual gold returns

ETFs

Return is usually less than actual gold

Gold Bonds (SGB)

More than actual return on gold

Gold Funds

Return is less than actual gold

Physical Gold

The purity of physical gold remains questionable, especially if it is in jewellery form 

ETFs

Electronic form of gold and hence, high purity assured

Gold Bonds (SGB)

The gold is of .999 purity and backed by the government

Gold Funds

Electronic form of gold and hence, high purity assured

Physical Gold

Safety remains a concern; needs high protection from theft and wear/tear  

ETFs

You don't have to hold the physical gold. Hence, no concern over safety

Gold Bonds(SGB)

The electronic form of gold is absolutely safe

Gold Funds

You don't have to hold the physical gold. Hence, no concern over safety

Physical Gold

Accepted as collateral

ETFs

Accepted as collateral

Gold Bonds (SGB)

Accepted as collateral. Banks treat it as a gold loan after deciding the Loan to Value ratio

Gold Funds

Accepted as collateral

Physical gold

Moderately liquid

ETFs

Highly liquid and tradable like stocks in the market

Gold Bonds (SGB)

Liquidity remains a concern for sovereign gold bonds. Tradable after the fifth year during the special exit window. In the secondary market, sold at a discount rate because of the fewer number of buyers

Gold Funds

Highly liquid. Can redeem and get funds next working day

Physical Gold

There is no tenure. You can hold it as long as you want, but daily wear/tear causes marginal loss in value

ETFs

No fixed tenure. You can sell your Gold ETFs like stocks and indices

Gold Bonds(SGB)

Gold bonds mature in eight years

Gold Funds

No fixed tenure. You can sell gold fund anytime

Physical Gold

Capital gain tax levies when you sell gold jewellery, coins, or bars

ETFs

LTCG applies after three years

Gold Bonds(SGB)

Gold bonds are exempted from capital gain tax if redeemed on maturity after eight years. LTCG applies only to the interest-earning

Gold Funds

LTCG applies after three years

Frequently Asked Questions FAQs

SGBs are government securities denominated in grams of gold. They are an

alternate to holding physical gold. SGBs are issued by RBI on behalf of the

Government of India.

SGBs offer investors with a range of benefits, such as

- The quantity of gold for which the investor pays is protected, since he

   receives the ongoing market price at the time of redemption/ premature

   redemption.

- No risks and costs of physical storage.

- No making charges and purity issues

- Earn interest at 2.5% per year on the initial investment. Interest is credited

  twice a year.

Firstly, you must open a Demat account with a reputed broker like Arihant Capital.

Once the account is active, you can start buying and selling gold ETF units like

individual stocks through your mobile app or web trading platform.

A gold ETF holds gold assets like gold bullions or futures contracts, and is traded on

a stock exchange. Here, the ETF price is directly linked to gold price. For instance, if

gold price increases by 2%, the ETF value may also increase by 2% approx. On the

similar note, if the gold price decreases, the ETF value should decrease too.

Gold ETFs are basically the units representing physical gold. They can be in the

form of dematerialised nature. Note, 1 Gold ETF unit is equal to 1 gram of gold. It is

backed by physical gold which is very pure and of the highest quality.

Both Gold ETFs and Gold mutual funds are investment options that provide

exposure to gold as an asset class. But there are a few differences between them.

Gold ETFs are like stocks that are listed and traded on a stock exchange. These

funds invest in physical gold or gold futures contracts, and their prices fluctuate with

the market price of gold. Gold ETFs can be bought and sold throughout the day like

stocks, and their prices are transparent and readily available.
 

On the other hand, gold mutual funds are open-ended funds that invest in gold and other precious metals such as silver. The prices of these funds are determined based on the net asset value (NAV) of the fund, which is calculated at the end of each trading day. Gold mutual funds can be bought and sold through a fund house, and they usually have higher expense ratios than gold ETFs.
 

Also, you need a demat and trading account to invest in a gold ETF, while it is not needed for investing in a gold fund.