Gold investment plans: Check schemes, lock-in period and other details

Minimum Investment on the savings plan: 1 gram of gold returns on the savings plan: Gold’s annual returns of 11 percent + extra 2.5 percent on your initial investment.

Lock-in period on the savings plan: 8 years and the mode of investment for the savings plan: One-time investment when the tranches open.

The latest Gold scheme in the market that has gained massive popularity for its high returns, Gullak Gold+ gives an extra 5 percent  interest every year on top of Gold’s CAGR of 11 percent. The extra 5percent interest is credited daily and is credited in the form of Gold grams which means the extra returns appreciate with gold price appreciation. This scheme is launched by Gullak in partnership with Augmont, one of India's largest Gold refineries. This investment option comes with no lock in period. Investors can withdraw as cash or even get 24K gold delivered at their doorstep.

Benefit on the savings plan: Extra five percent gold every year (compound interest)

Minimum Investment on the savings plan: 10 grams for the 5 percent scheme, 0.5 grams for the extra 4percent scheme

Returns on the savings plan: ~16% p.a(gold price appreciation of 11%+extra 5% gold)

Lock-in Period on the savings plan: None

Mode of Investment for the savings plan: Both SIPs & one-time investments are supported.

The Tanishq Gold Harvest scheme offers an innovative gold savings scheme. Investors can make monthly instalments using this gold investment plan, and at the end of 13 months, they can buy jewellery equivalent to their total payment. The gold investment plan provides an additional 75% on the first instalment. Additional making & wastage charges will be involved when you get the jewellery ordered.

For example, if you invest 1L every month, you’ll have invested 13L in 13 months. After 13 months tanishq will give you an extra 75% on your first instalment, making your overall investment 13.75L, which is a 5.8% return on your investments. Post that you can buy gold jewellery for that amount. Note that over the 13 months, you will not benefit from Gold price appreciation because the Gold purchase happens only after the tenure.

Benefit on the savings plan: Extra 75 percent on the first installment

Minimum Investment on the savings plan: Minimum Rs 2000 or any greater multiples of Rs1000

Returns on the savings plan: 5.8%

Lock-in Period on the savings plan: 10 months-13 months

Mode of Investment for the savings plan: Manual investments via cash/online banking or post-dated cheque.

Below is a comparative study of all the gold investment plans discussed above. Using this, you can choose the best gold saving scheme for your needs.

With an array of gold investment plans in India, the most popular ones in 2023 have been highlighted above. From both, jewellery and gold investment plan perspective, Gullak Gold+ seems to be an emerging choice.

The subtle bias towards Gullak Gold+ gold investment plan stems from its unique attributes, including the additional 5 percent gold every year, 100percent flexibility, robust returns and a 100percent bank guarantee on investments. Gullak Gold+ claims to beat returns from 90 percent mutual funds as well. Investors who want to capitalise on their gold investment strategy, can utilise this gold savings plan to get the benefit of extra 5 percent  returns on top of gold price appreciation. However, the choice ultimately rests on aligning the scheme's benefits with your financial goals, risk appetite, and investment horizon.

Note: This is a partnered post.