Embarking on a journey of financial growth, a strategic gold investment plan becomes paramount. In India, where gold is a key contributor to every household's wealth creation voyage, the quest for the best gold saving scheme is a pivotal endeavour. This comprehensive guide navigates the landscape of gold investment plans, revealing the best gold scheme options and unveiling the best gold saving scheme. In this blog, we will cover a range of popular gold schemes that cater to diverse investment preferences.
Sovereign Gold Bond (SGB) Scheme:
Offered by the RBI, this gold investment plan offers an alternative to physical gold ownership, providing an additional 2.5% interest along with gold price appreciation. The extra 2.5% interest from this gold investment plan is accrued every six months. With an 8-year maturity period, this savings plan entails a significant lock-in duration. Sold based on units, each representing a certain amount of gold in grams with 99.9 percent purity, they are released in segments at intervals. Each SGB unit corresponds to 1 gram of gold.
Scheme details of the gold investment plan:
Benefit on the savings plan: Extra 2.5 percent interest on your principal amount (simple interest).
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.
Gullak Gold+ Scheme:
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.
Scheme details of the gold investment plan:
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.Tanishq Gold Harvest Scheme:
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.
Scheme Details of the gold investment plan:
Benefit on the savings plan: Extra 75 percent on the first installmentMinimum 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.
Table: Best Gold saving schemes
| Parameters | Best gold saving scheme: SGB | Best gold saving scheme: Gullak Gold+ | Best gold saving scheme: TanishqGolden harvest |
| Extra Benefits | Extra 2.5% on the principal amount(in INR) | Extra 5% every year(in gold grams) | Extra 75% on 1st instalment |
| Returns | 11%(gold returns) + 2.5%Extra. Extra returns are in Simple interest | 11%+ extra 5% pa. Returns are in Compound interest | 5.8% in 13 months |
| Lock-in period | 8 years | none | 13 months |
| Claimable form | In INR | In both gold andINR | Gold jewellery |
Which is the best gold saving scheme for you?
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.
