Buying gold on auspicious occasions such as Dhanteras holds special importance and emotional appeal in India. Over the last few years, several avenues have opened that allow investments in gold apart from buying bullion gold. Some of these options include gold exchange-traded funds, gold savings funds, and sovereign gold bonds (SGBs) which are well-regulated online investment options. If you are planning to buy gold this Dhanteras, here are some interesting investment options for you.
1. Gold ETFs
Investors have the option to buy and sell the units of gold ETFs on the stock exchanges. Over the last 10 years, gold ETFs have given decent returns annually as gold ETFs track the prices of gold and are a good medium-term investment. You must have a demat account to invest in the units of gold ETFs.
2. Sovereign gold bonds (SGB)
For those looking for a long-term view of gold investments, sovereign gold bonds are a sensible option. SGBs are issued by the Reserve Bank of India on behalf of the Indian Government which makes them a secure investment option. The tenure of SGBs is of eight years, however, there is an option to sell it back to the government after the end of the fifth year. Sovereign gold bonds yield an interest rate of 2.5 percent per annum, and they track the price of one gram of gold. At the time of maturity, investors are paid according to the current price of 1 gram of gold.
3. Digital Gold
In the case of those who want to buy gold with the assurance of purity and safe storage, digital gold is the best option. Several platforms allow investments in digital gold where customers can buy gold and make payments online. After that, the seller stores the gold in secured vaults on the customer’s behalf. Digital gold is redeemable in the form of 24 Karat, 999.9 purest gold coins, and gold bars. However, terms and conditions regarding the purchase, redemption and storage of digital gold vary from seller to seller.
Apart from gold, here are some other great investment options for Dhanteras.
Equity
Investing in equity is the best choice for investors looking for high returns. To invest in equity and maximize returns, one needs to follow a very well-planned investing strategy.
SIPs
Dhanteras also brings a great opportunity to start a SIP which will offer a clearly defined time financial goal.
(Edited by : Sudarsanan Mani)
First Published: Oct 12, 2022 12:58 PM IST
